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Executive Financial Services Overview

As an executive of a publicly traded company, you must understand the complex rules and regulations that govern your stock holdings. You also need to comply with your company’s insider trading policies that determine when you can trade your company shares. For instance, you may be required to obey blackout periods and defined trading windows.

At the same time, you undoubtedly have personal investing goals that may include portfolio diversification and retirement savings. Morgan Stanley has the experience and knowledge to assist you with navigating your unique situation.

Morgan Stanley Executive Financial Services (EFS) at-a-glance:

  • The EFS group is a specialized team of professionals educated in regulatory and U.S. Securities and Exchange Commission (SEC) rules that affect corporate executives and their stock holdings.
  • Morgan Stanley has consistently been ranked #1 in 10b5-1 market share, executing over 26,500 plans.
  • You benefit from the service of a dedicated team supported by professionals in restricted and control securities, portfolio management, lending, and asset protection.
  • Working with you, your company’s corporate counsel, and your Financial Advisor, Morgan Stanley can craft a stock compensation strategy to support your investment objectives, and tie the program into a comprehensive wealth management strategy.

Our Services

10b5-1 Preset Diversification Program (PDP®)

The SEC adopted Rule 10b5-1 in August 2000, providing an affirmative defense against allegations of insider trading. Morgan Stanley’s dedicated PDP product team will help you implement formal stock selling and/or buying plans that follow the 10b5-1 rule. A PDP trading plan, which must be created at a time when the employee is not in possession of any material nonpublic information, will lay out instructions for future sales or purchases. Once the PDP trading plan is adopted, the PDP product team follows the plan’s instructions.

Key benefits of a 10b5-1 Trading Plan include:

  • An affirmative defense against claims of insider trading
  • Access to public markets during corporate blackout periods
  • Ability to buy or sell stock on a predictable and consistent basis
  • Convenience of putting diversification on “auto-pilot”
  • Potentially reducing the risks associated with a concentrated stock position

Control and Restricted Securities

The sale of restricted securities and control stock is primarily governed by SEC Rule 144. Morgan Stanley’s EFS team assists our corporate executive clients, as well as non-affiliates of corporations, by helping to ensure that all open market sales fully comply with Rule 144. EFS can also assist with:

  • Securities based loans secured by eligible restricted or control stock
  • Legend removals to facilitate the transfer of securities for sale, gifting, and other purposes
  • Exercise of employee stock options to enable diversification
  • Repurchases under Rule 10b-18

For more information about Morgan Stanley’s Executive Financial Services, please contact the EFS team at 732-974-5006

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