In his released prepared remarks for the CFO Network Summit, SEC Chairman Gary Gensler highlighted areas of potential rulemaking around Rule 10b5-1 trading plans. Chairman Gensler has cited discussion and proposals based on Professor Dan Taylor’s article, "Gaming the System: Three 'Red Flags' of Potential 10b5-1 Abuse." *In the article, Professor Dan Taylor analyzes 20,000+ trading plans, and provides evidence behind the cooling off period recommendation.*
See SEC Charman Gensler's prepared remarks: https://www.sec.gov/news/speech/gensler-cfo-network-2021-06-07
See Professor Taylor's bio and a brief summary of his paper which the prepared remarks were based: https://vegaeconomics.com/gaming-the-system-three-red-flags-of-potential-10b5-1-abuse
The views expressed in this article are solely those of the authors, who are responsible for the content, and do not necessarily represent the views of Vega Economics. For more information about Professor Taylor, please email experts@vegaeconomics.com.