Friday, December 10, 2021

New Challenges for Insider Trading Compliance (SEALS 2022)

It is an exciting time for insider trading law. BLPB coblogger Joan MacLeod Heminway and I will be moderating a discussion group, New Challenges for Insider Trading Compliance,  at the upcoming Southeastern Law Schools (SEALS) Annual Conference (July 27-August 3, 2022). The conference is scheduled to be held in person in Sandestin, Florida. Here's the description for our discussion group:

Insider trading law in the United States is in a state of flux and uncertainty. In May of 2021, the House of Representatives passed the Insider Trading Prohibition Act. If this bill becomes law, it will impose an entirely new statutory regime for civil and criminal enforcement. Moreover, Securities and Exchange Commission (SEC) Chairman Gary Gensler recently directed the staff to present recommendations to "freshen up" and tighten the operative provisions in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. In response, in August of 2021, the SEC's Investor Advisory Committee proposed extensive new restrictions on the use of 10b5-1(c) trading plans as an affirmative defense for insider trading. Meanwhile, prosecutors and regulators continue to employ novel theories of liability in insider trading enforcement actions. Criminal enforcement actions under 18 U.S.C. ยง 1348 and civil enforcement under the novel "shadow trading" theory of liability are just two examples. How will these and other impending changes affect compliance departments at public companies and in the financial industry? How should the lawyers in these and other organizations prepare? Should market participants welcome these potential changes to our insider trading laws, or are there grounds for concern? This discussion group is designed to address these and other related questions.

There may still be room for additional participants. If you are a law (or business law) professor who is interested in joining the discussion in sunny Florida, don't hesitate to reach out to me at [email protected].

John Anderson, Securities Regulation, White Collar Crime | Permalink


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