TAILIEUCHUNG - The STOCK Act, Insider Trading, and Public Financial Reporting by Federal Officials

Indeed calls from investors for increased ESG disclosure have been growing louder. In April 2009 Eurosif, the European Sustainable Investment Forum, issued a public policy position paper to recommend the European Commission encourage greater corporate transparency on ESG issues including a call for European institutions to mandate disclosure of ESG data by publicly traded, large corporations5 . Such reporting would be principles-based and use a limited number of standardised Key Performance Indicators (KPIs), some of which would be sector specific. In July 2009 more than 50 major investment firms and professionals joined the Social Investment Forum (SIF) in calling on the. | Congressional Research Senrice------ The STOCK Act Insider Trading and Public Financial Reporting by Federal Officials Jack Maskell Legislative Attorney April 19 2012 Congressional Research Service 7-5700 R42495 CRS Report for Congress------------------------------------------- Prepared for Members and Committees of Congress The STOCK Act Insider Trading and Public Financial Reporting by ỉederal Officials Summary The STOCK Act Stop Trading on Congressional Knowledge Act of 2012 which was signed into law on April 4 2012 affirms and makes explicit the fact that there is no exemption from the insider trading laws and regulations for Members of Congress congressional employees or any federal officials. The law states that all federal officials have an express duty of trust and confidentiality with respect to nonpublic material information which they may receive in the course of their official duties and a duty not to use such information to make a private profit. The act also requires expedited public disclosure of covered financial transactions by all officials in the executive and legislative branches of the federal government who are covered by the public reporting provisions of the Ethics in Government Act of 1978 as amended. The act requires not only annual public reporting of such transactions but also public reporting within 30 days of receipt of a notice of a covered financial transaction however in no event more than 45 days after such transaction. All public financial disclosure statements filed under the Ethics in Government Act in the legislative and executive branches will eventually be made in electronic form and will be posted on the Internet where they may be publicly searched sorted and if a log-in protocol is followed downloaded from official government websites. Congressional Research Service The STOCK Act Insider Trading and Public Financial Reporting by ỉederal Officials Contents Insider Commodity Exchange Initial Public

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