U.S. SEC votes to increase disclosures around trading plans by insiders

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FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C.

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission on Wednesday voted to amend the Securities Exchange Act to expand disclosures around the trading of company shares by insiders, such as executives and directors, that have received equity-based compensation.

The new rules will also impose a “cooling-off period” of 90 days, or two days after the release of financial statements, whichever is longer, after insiders develop a trading plan under the SEC’s Rule 10b-5, until they can make the trades.

(Reporting by John McCrank; Editing by Chris Reese)

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