Regulatory Alerts2019-02-06 | 2018-28123Added
Disclosure of Hedging by Employees, Officers and Directors
The Securities and Exchange Commission adopted a final rule implementing Section 955 of the Dodd-Frank Act to require issuers to disclose their policies on employee and director hedging of equity securities. Companies must describe in their proxy statements whether they permit or prohibit financial instruments that hedge against decreases in the market value of equity compensation or holdings. The rule mandates specific disclosure regarding the categories of persons affected and applies to fiscal years beginning on or after July 1, 2019, for larger companies and July 1, 2020, for smaller reporting and emerging growth companies.
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