WASHINGTON (Reuters) – The head of the U.S. Securities and Exchange Commission (SEC) said on Monday that he has asked staff about tightening rules on trading plans companies use when selling stocks they own.
Gary Gensler said the measures, known as Rules 10b5-1, should be aimed at preventing company insiders from abusing these plans to obtain huge windfalls at the expense of ordinary investors.
He added that staff should consider limitations on how these trading plans could be amended or canceled when company staff have access to nonpublic material information.
(Reporting by Katanga Johnson; editing by Jonathan Oatis)
