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US S573

US S573
Promoting Transparent Standards for Corporate Insiders Act


summary

Introduced
02/27/2019
In Committee
02/27/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to require the Securities and Exchange Commission to carry out a study of 10b5-1 trading plans, and for other purposes. This bill directs the Securities and Exchange Commission (SEC) to study and report on possible revisions to regulations regarding Rule 10b5-1 trading plans. (Such plans allow certain employees of publicly traded corporations to sell their shares without violating insider trading prohibitions.) The SEC must revise regulations consistent with the results of the study.

AI Summary

This bill directs the Securities and Exchange Commission (SEC) to study and report on possible revisions to regulations regarding Rule 10b5-1 trading plans. Rule 10b5-1 trading plans allow certain employees of publicly traded corporations to sell their shares without violating insider trading prohibitions. The bill requires the SEC to consider various potential amendments, such as limiting the ability to adopt plans outside of trading windows, establishing mandatory delays, and requiring additional disclosures and oversight. After completing the study, the SEC must revise the regulations consistent with the results.

Committee Categories

Housing and Urban Affairs

Sponsors (2)

Last Action

Committee on Banking, Housing, and Urban Affairs. Hearings held. (on 11/17/2020)

bill text


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