Several of the bills marked up recently by the House Financial Services Committee, with all but the last one agreed to by voice vote, impact public companies and IPOs, including:
- Promoting Transparent Standards for Corporate Insiders Act. Introduced in July 2018 by Representative Maxine Waters, the SEC would study whether Rule 10b5-1 should be amended to consider changes to restrict practices for plan adoption under the rule, many of which are already being implemented by companies.
Under the bill, the SEC should consider limiting the adoption of plans during times when insiders are permitted to buy or sell securities; limiting the adoption of multiple, overlapping plans; establishing mandatory delays between plan adoption and the first trade; and limiting how often participants can modify or cancel plans. Continue Reading