Heads up: In light of recent clarifications by the SEC’s Division of Corporation Finance staff on Rule 10b5-1 and heightened scrutiny by the Enforcement Division, experts say careful consideration should be given to the timing of the creation, alteration, or suspension of any Rule 10b5-1 stock sale plans.
The Division of Corporation Finance recently updated its Exchange Act Rules Compliance and Disclosure Interpretations to provide additional guidance on Rule 10b5-1. While some of the new C&DIs incorporate Rule 10b5-1 interpretations previously addressed by the SEC staff in its Fourth Supplement to the Manual of Publicly Available Interpretations in May 2001, the C&DIs also include some important new guidance, DLA Piper attorneys Sanjay Shirodkar and Nicolas Morgan note in an April 17 Corporate Governance Alert.
