15 USC 7244 - Insider trades during pension fund blackout periods

U.S Code last checked for updates: Nov 25, 2024

§ 7244.

Insider trades during pension fund blackout periods

(a)

Prohibition of insider trading during pension fund blackout periods

(1)

In general

(2)

Remedy

(A)

In general

(B)

Actions to recover profits

(3)

Rulemaking authorized

(4)

Blackout period

For purposes of this subsection, the term “blackout period”, with respect to the equity securities of any issuer—

(A)

means any period of more than 3 consecutive business days during which the ability of not fewer than 50 percent of the participants or beneficiaries under all individual account plans maintained by the issuer to purchase, sell, or otherwise acquire or transfer an interest in any equity of such issuer held in such an individual account plan is temporarily suspended by the issuer or by a fiduciary of the plan; and

(B)

does not include, under regulations which shall be prescribed by the Commission—

(i)

a regularly scheduled period in which the participants and beneficiaries may not purchase, sell, or otherwise acquire or transfer an interest in any equity of such issuer, if such period is—

(I)

incorporated into the individual account plan; and

(II)

timely disclosed to employees before becoming participants under the individual account plan or as a subsequent amendment to the plan; or

(ii)

any suspension described in subparagraph (A) that is imposed solely in connection with persons becoming participants or beneficiaries, or ceasing to be participants or beneficiaries, in an individual account plan by reason of a corporate merger, acquisition, divestiture, or similar transaction involving the plan or plan sponsor.

(5)

Individual account plan

(6)

Notice to directors, executive officers, and the Commission

(b)

Notice requirements to participants and beneficiaries under ERISA

(1)

Omitted

(2)

Issuance of initial guidance and model notice

(3)

Plan amendments

If any amendment made by this subsection requires an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after the effective date of this section, if—

(A)

during the period after such amendment made by this subsection takes effect and before such first plan year, the plan is operated in good faith compliance with the requirements of such amendment made by this subsection, and

(B)

such plan amendment applies retroactively to the period after such amendment made by this subsection takes effect and before such first plan year.

(c)

Effective date

(Pub. L. 107–204, title III, § 306, July 30, 2002, 116 Stat. 779.)

cite as: 15 USC 7244