Regulators will step up their focus on trading by corporate executives this year, according to a large international law firm that is pressing corporate boards to increase oversight of executive-trading plans.
- Regulators will increase scrutiny on trading by corporate executives, pushing corporate boards to enhance oversight of executive-trading plans and ensure compliance beyond just the letter of the law.
- Concerns arise from loopholes in 10b5-1 plans, which allow executives to trade company shares even with private company knowledge, given the plans were established without such knowledge; there’s currently minimal oversight and public disclosure requirements for these plans.
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