Perspectives: D&O Market Eyes Tighter Insider Trading Rules

February 9, 2022

Sompo’s Jeremy Salzman, SVP, Head of CML and FI Claims, U.S. Insurance and Deirdre Martin, SVP and CUO, CML and FI, U.S. Insurance recently co-authored an article published in Business Insurance discussing potential reform to insider trader rules and the impact on the D&O insurance market.


While the SEC’s efforts to uncover carefully orchestrated insider trading are not new, recent Enforcement Division action shows a continued commitment to enforcing individual accountability for abuse and misconduct and halting unfair trading advantages in the market.


Traditional compliance protocol to prevent insider trading has centered around a company’s institution of individual 10b5-1 plans. But, as of late, in addition to recently initiated enforcement actions, SEC’s Chair, Gary Gensler has ordered his staff to undertake reform of 10b5-1 plans, the mechanism corporate insiders use to disclose intent of and initiate trading in their company’s stock.


Read the full Business Insurance article


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