The law states very clearly that the "informed" exemption is a maximum of THREE DAYS. Read your own citation:
"In the case of the transactions described in paragraphs (g)(2) and (g)(3) of this section, if the notification date is later than the third business day following the trade date of the transaction, the date of execution is deemed to be the third business day following the trade date of the transaction."
As I correctly stated in my original post, sales under a 10(b)5-1 Plan still must be reported within 5 days of the first execution. And yes, that means plan sellers may have to file multiple Form 4's, which is exactly what the SEC demands. But, that is only assuming the seller is not informed right away, which in this day and age of electronic communication is not realistic. Almost all sellers receive notice same-day, which makes the "notification" exemption moot.
And the assertion that the SEC is fine with it simply because he hasn't been charged with a crime is ridiculous. The SEC does routinely go through and charge the individuals, and the companies, with violations. Here is an example:
"Andrew M. Calamari, Director of the SEC’s New York Regional Office, added, “The reporting requirements in the federal securities laws are not mere suggestions, they are legal obligations that must be obeyed. Those who fail to do so run the risk of facing an SEC enforcement action.”
Soon you might see PT and Mexus named in SEC litigation for these violations.
And if PT is breaking the simple laws on insider trading reporting, what other securities laws might he also be violating?
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