Business Insider: Elizabeth Warren and Sherrod Brown urge the SEC to overhaul insider-trading rules that allegedly harm everyday investors
A trio of Democratic Senators called on the Securities and Exchange Commission to overhaul insider trading rules that allegedly put retail investors at a disadvantage.
Sens. Elizabeth Warren, Sherrod Brown, and Chris Van Hollen urged the regulator to review and update policies regarding 10b5-1 plans. The policy allows corporate executives to schedule stock purchases and sales for the purpose of avoiding instances of insider trading. Yet the group of lawmakers suggests executives — particularly those in the health care sector — are misusing the plans for personal profits.
While trades made through 10b5-1 plans are meant to be scheduled months ahead of time, "it is not unusual" for the timing to shift days or hours before public disclosures, the senators said. Such adjustments "undermine" the purpose of the plans by cutting down on the time between executives' learning of inside information and their trades.
Read the full article here.
By: Ben Winck
Source: Business Insider
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