Rule 10b5-1 Plans and Insider Trading

Many clients, especially those that are corporate executives or business owners, will be subject to various trading restrictions under the Securities Act of 1934. The course covers the specific of insider trading and specifically 10b5-1 plans and systematic selling programs that can help insiders generate liquidity. The course also addresses the issue of securities received as a part of employee compensation under Rule 701. Key topics include: – Overview of the key aspects of the Securities Act of 1933 and Securities Act of 1934 – Defining the term “insider trading” – Background and overview of Rule 10b5-1 – Understanding the context and need for the affirmative defenses – Three types of affirmative defenses/safe harbors – Systematic Selling Plans (Rule 10b5-1 Plans) – Understanding Section 16 and Short Swing Profit restrictions – Overview of Rule 701 – Understanding the application of Rule 701 by business and it limitations for those acquiring securities under Rule 701 – Navigating the resale alternatives for clients receiving securities under Rule 701 – Case Study applications and exercises