GASSAN, CA— The Securities and Exchange Commission (SEC) is set to issue its first rulemaking in nearly a decade about what constitutes insider trading.
The SEC’s Office of Investor Advocacy (OIA) is expected to issue an interim guidance, which is expected by the end of this month.
The rulemaking will come after the commission issued its final rule on insider trading last year.
At issue is whether the Securities and Code section 12(a) of the Dodd-Frank Act requires an investor to disclose the price of an item, whether the information should be disclosed in a way that is “comparable” to other information disclosed by an insider or whether an investor should be required to disclose a trade-related price.
The SEC ruled in June that there was no requirement for an investor disclose the prices of stocks on their website, and that there is no “comparative disclosure requirement” under the act.
The commission has said that the disclosure should be limited to information that a “reasonable investor” would be expected to know.
The SEC has also said that “a reasonable investor” must be an “individual” and that disclosure should not be “in addition to” or “contrasted” to “other information disclosed.”
But a spokesman for the SEC told Fox News that the rulemaking would be about whether “expert investors” should be able to make informed financial decisions based on their knowledge.
“In addition to addressing whether there are ‘comparable’ disclosures, the rule is expected as part of the SEC’s ongoing efforts to review and reform the disclosure of information by insiders,” spokesman Eric B. Smith said in a statement.
Investors will be able make their own decisions, the SEC said, based on “relevant facts.”
But the SEC did not offer an explanation as to why the SEC is considering whether it is necessary to require disclosure of the price.
On Monday, the agency’s staff wrote to lawmakers, urging them to “develop legislation that could provide guidance on how to address these concerns in a reasonable way.”
The OIA has been leading the fight against insider trading in the wake of the financial crisis, which led to a wave of litigation over the conduct of some investors.
In March, the OIA issued a memo that said the SEC was still in the process of developing a rule that would require insider trading disclosures to be made on the websites of publicly traded companies.
This summer, the Office of Inspector General released a report that said that a number of securities firms, including GASSON, were improperly selling information to the public.
The report also noted that the SEC failed to conduct an investigation into the companies that made the deals.
In September, the office said that GASSUNT and GASSELT, the company that owns GASS, engaged in a scheme to artificially inflate the value of their stock.
In the report, the report said that in 2014, GASSDEN, GASSTREAM, and GASMELT failed to disclose that GALLAGER, the holding company that holds GASS’ shares, had an equity stake in GASS and that GALTER, the parent company of GASS was also a stockholder in GALLABL.
The companies also failed to comply with the SEC rules on disclosing certain information on their websites.