SEC Proposes Amendments Regarding Rule 10b5-1 Insider Trading Plans and Related Disclosures

The Securities and Exchange Commission today proposed amendments to Rule 10b5-1 under the Securities Exchange Act of 1934 to enhance disclosure requirements and investor protections against insider trading. The proposal includes updates to Rule 10b5-1(c), which provides an affirmative defense to insider trading for parties that frequently have access to material nonpublic information, including corporate officers, directors and issuers. "Over the past two decades, we’ve heard concerns about and seen gaps in Rule 10b5-1 — gaps that today's proposals would help fill," said SEC Chair Gary Gensler. "These issues speak to the confidence that investors have in the markets. Anytime we can increase investor confidence in the markets, that’s a good thing. It helps investors deciding where to put their money.