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SEC Calls for New Restrictions on Executive Stock-Trading Plans

SEC updating 10b5-1 regulations​​​

The SEC passed a rule creating 10b5-1 plans in 2000. The agency’s officials were aware then of weaknesses in the structure, but the agency hasn’t refined the rule.  The Council of Institutional Investors asked the SEC in 2012 and 2013 to rein in 10b5-1 plans, saying they were subject to abuse.  

SEC Chairman Gary Gensler said he was seeking to revise rules for controversial 10b5-1 plans at a WSJ's CFO Network event. Corporate insiders use the plans to avoid insider-trading claims when buying or selling their own company's stock.