SEC Adopts More Ethics|Rules for Employees

     WASHINGTON (CN) – As President Obama has signed into law sweeping securities and financial sector reform, the Securities and Exchange Commission has adopted supplemental ethics rules for the agency’s current and former employees, members and commissioners. The new rules require them to file full public disclosure reports listing all the securities they hold.

     The SEC first adopted conduct regulations in 1953 and later comprehensive revisions in 1966 and 1980 have been adopted to comply with federal law, executive orders, and the SEC’s own requirements.
     Under the new rules, SEC members and employees are not allowed to knowingly buy or hold a security or other financial interest in an entity directly regulated by the agency. They also are not allowed to buy a security in an initial public offering (IPO) for seven calendar days after the IPO is effective, or buy or carry securities on margin or short sell them.
     Additionally, SEC members and employees must hold securities for a minimum of six months from the trade date unless the securities are sold for 90 percent or less of their original purchase price, are of a six month maturity date or are shares in a mutual fund.

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