SEC's New Rule on Insider Trading Arrangements Will Necessitate Changes
- michaelarbogast1
- Jan 5, 2023
- 1 min read
Updated: Jan 20, 2023
The final rule, published on December 29, 2022, becomes effective February 27, 2022 and will impact most securities issuers by:
narrowing the availability of affirmative defenses to charges of insider trading;
necessitating changes to insider trading policies and procedures;
requiring disclosures of certain equity awards to named executive officers; and
requiring disclosure of insider trading policies and arrangements on periodic reports commencing with the second quarter 10-Q in 2023.
Registrants should review their insider trading policies and procedures to ensure they allign with the narrowing of the affirmative defenses to maximize potential defenses to claims of liability and SEC enforcement actions.
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