CPAs and Advisors with Your Growth in Mind

House Bill Includes Insider Trading Plan Study

News of Rep. Chris Collins’ (R-N.Y.) recent indictment for insider trading has brought attention to a little-known provision in the JOBS and Investor Confidence Act of 2018. Passing through the House of Representatives last month, the bill dubbed “JOBS Act 3.0” features a measure requiring the Securities and Exchange Commission (“SEC”) to study insider trading plans administered by Rule 10b5-1 of the Securities Exchange Act. Such plans let company insiders trade stock on a fixed schedule and avoid liability from insider trading. The study includes examining the new restrictions to Rule 10b5-1, such as when an issuer can implement a 10b5-1 plan. Currently, Rule 10b5-1 offers an organized approach. Read More.

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FY16 SEC Enforcement Rules Announced

The Securities and Exchange Commission (“SEC”) announced last week the filing of 868 enforcement actions during fiscal year 2016. Actions included companies and their executives engaging in financial reporting misconduct, as well as transgressions by registrants and gatekeepers. The SEC contributes the enhanced use of data and analytics to help detect misconduct and accelerate the investigation process. Fiscal year 2016 showed an increase in actions concerning investment advisers and Foreign Corrupt Practices Act violations. In addition, issuer reporting and disclosure matters continued to be a priority last year. The SEC also held various gatekeepers accountable for failing to comply with. Read More.

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