Regulatory Alerts2014-07-24
Added · Updated
Communiqué on Payment of Net Trading Profits by Executives of Issuers to Issuers
The Capital Markets Board issued this Communiqué to eliminate information asymmetry by requiring executives to remit net profits from short-term trading of their issuer's instruments back to the company. Executives must calculate profits using a last-in-first-out method over any six-month period and pay the resulting amount to the issuer within 30 days of accrual. Failure to comply results in an administrative fine equal to twice the benefit, while specific exceptions such as capital contribution shares and employee allocations are exempted.
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