PRINTER'S NO. 2024
No. 1450 Session of 2002
INTRODUCED BY ARMSTRONG, C. WILLIAMS AND JUBELIRER, MAY 28, 2002
REFERRED TO BANKING AND INSURANCE, MAY 28, 2002
AN ACT
1 Amending the act of December 5, 1972 (P.L.1280, No.284),
2 entitled "An act relating to securities; prohibiting
3 fraudulent practices in relation thereto; requiring the
4 registration of broker-dealers, agents, investment advisers,
5 and securities; and making uniform the law with reference
6 thereto," providing for prearranged trading programs.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of December 5, 1972 (P.L.1280, No.284),
10 known as the Pennsylvania Securities Act of 1972, is amended by
11 adding a section to read:
12 Section 410. Prearranged Trading Programs.--In connection
13 with the offer, sale or purchase of any security in this State,
14 no person shall be deemed to have violated section 401 or 406 or
15 otherwise to have made an untrue statement of a material fact or
16 omitted to state a material fact necessary in order to make the
17 statements made, in the light of the circumstances under which
18 they were made, not misleading if such person demonstrates that
19 the offer, sale or purchase was prearranged in accordance with
20 17 C.F.R. § 240.10b5-1(c) (relating to trading "on the basis of"
1 material nonpublic information in insider trading cases), or any
2 successor thereto, promulgated under the Securities Exchange Act
3 of 1934 (48 Stat. 881, 15 U.S.C. § 79a et seq.).
4 Section 2. This act shall take effect immediately.
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