One of the country's biggest managers of pension funds is concerned that corporate insiders might be getting a deal that's a little too good to be true, and has registered a complaint with the Securies and Exchange Commission.

According to the Wall Street Journal, the Council of Institutional Investors – a nonpartisan organization which comprises some $3 trillion in pension investments on behalf of public, private and union pension funds – asked the SEC in late December to consider the improprieties of executives who've profited rather heavily from trading their own stock in advance of big news about bad times for their own companies

The CII's letter, sent Dec. 28, asks interim SEC Chairman Elisse B. Walter to examine the potential misuse of trading plans that allow company insiders to trade their company stock without providing a 30-day notice, especially in cases of major business changes that could considerably raise the values of those shares.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.