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