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Tag: 10b5-1

The Evolution of Rule 10b5-1

Rule 10b5-1, established by the SEC in October 2000, was designed to resolve an insider trading dilemma stemming from conflicting court of appeals decisions regarding executive actions that could trigger insider trading violations. Initially created to allow corporate insiders to prearrange stock trades and mitigate accusations of trading on material non-public information (MNPI), the rule has evolved significantly.

Recent amendments in December 2022 have increased disclosure requirements, introduced mandatory cooling-off periods, and mandated certifications to ensure trades are made in good faith. These changes aim to address longstanding concerns about insiders exploiting gaps in liability rules. For the latest industry updates and historical news, explore Intelligize’s blog below.

Shadow on a wall of a person with a flashlight who is investigating

Execs’ 10b5-1 Plans Reportedly at Heart of Silicon Valley Bank Investigation

Shadow on a wall of a person with a flashlight who is investigating

What did Silicon Valley Bank executives know, and when did they know it? Ever since the financial institution of choice for venture capital-backed startups went bust on March 10, talk in the media and around Washington has focused on the po...

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Railway signals in the middle of railroad tracks, symbolizing insider trading

Feds Issue First Indictment Related to 10b5-1 Plans

Railway signals in the middle of railroad tracks, symbolizing insider trading

After months of signaling a crackdown was coming, the federal government has broken new ground by issuing its first indictment against an executive, based solely on the use of so-called 10b5-1 plans. A quick refresher: Rule 10b5-1 of the Se...

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Pothole in street with radiating cracks

SEC Readies Changes to 10b5-1 Plans

Pothole in street with radiating cracks

Regardless of whether you agree with Securities and Exchange Commission Chair Gary Gensler’s views on policy, you can’t argue against his ability to get things done. Since he took over at the agency, the SEC has acted on hot-button issues l...

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Cracked bandage concealing insider trading

SEC Proposes Stricter Rules on 10b5-1 Plans and Stock Buybacks

Cracked bandage concealing insider trading

Back in August, we told you about the unvarnished disdain Securities and Exchange Commission Chair Gary Gensler showed for so-called 10b5-1 plans. These plans enable corporate executives to create schedules for trading stocks in the future....

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SEC Digs in on Insider Trading Enforcement

SEC Digs in on Insider Trading Enforcement

SEC Digs in on Insider Trading Enforcement

Low-level employees at a high-flying tech company team up with their buddies to make millions off illicit stock trades by exchanging corporate secrets. It sounds like the kind of story Netflix might turn into an episode of its documentary s...

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Summary of Rule 10b5-1

Rule 10b5-1 permits company insiders to sell their stock through a prearranged plan that outlines the share price, quantity, and transaction date ahead of time. Both the insider selling the stock and the broker executing the transaction must confirm that they are not privy to any material nonpublic information (MNPI).

SEC Reporting & Hot Topics

SEC Reporting & Hot Topics

SEC Reporting & Hot Topics

Join our experts for an interactive webinar on finalized and proposed SEC rules and disclosures, plus updates on proposals (like ESG) that will have the greatest impact on companies. This free 1.5-hour CPE-eligible* webinar is co-sponsored...

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