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10b5-1 Preset Diversification Program Plan

A Smart Solution for a Common Dilemma

Corporate executives frequently come into possession of material non-public information and face quarterly or special blackout periods that restrict market access for trading their company stock. As a result, they’re often left with narrow windows—and, sometimes, unpredictable opportunities—to execute transactions.

Morgan Stanley’s 10b5-1 Preset Diversification Program® (PDP) was specifically designed to address these issues. By adopting a PDP, you gain an affirmative defense against claims of insider trading and can structure a trading schedule that aligns your need for personal liquidity or diversification with your timing requirements (such as the vesting dates for stock options and restricted stock plans). What’s more, our industry-leading platform and separate-desk structure support the affirmative defense that Rule 10b5-1 offers.

Specialized Resources Focused on You

Our team of 10b5-1 PDP specialists works closely with your Financial Advisor to structure, draft and adopt a 10b5-1 trading plan. This process puts diversification on autopilot and provides discipline during market fluctuations—all while supporting you in the pursuit of your investment objectives.

Once adopted, your plan will be executed by our dedicated 10b5-1 PDP trading desk, a team of traders focused solely on 10b5-1 plans. By keeping our specialists and traders separate and distinct from your Financial Advisor and associates, we ensure that EFS will handle your unique needs while providing you immediate open lines of communication to your Financial Advisor.

When you work with our specialized team and set up a 10b5-1 plan, you gain these important advantages:

  • An affirmative defense against potential claims of insider trading
  • Access to public markets without regard to corporate blackout periods
  • Diversification that reduces risks associated with a concentrated equity position
  • Filing of required Rule 144 forms on your behalf
  • Prompt execution notification to facilitate Section 16 filing requirements
     

Leadership

We've been ranked No. 1 10b5-1 for the past 14 years*

Experience

We have executed more than 33,000 plans for more than 1,700 issuers, and have sold over $91.4Bn in proceeds. 

Scope

Our clients include a diverse range of companies whether viewed by market cap, industry sector or stage in the corporate lifecycle.

Morgan Stanley Ranked #1 in Rule 144 and 10b5-1 Transaction Services Over the Last 14 Years

7. Reprinted with the permission of The Washington Service. 301-913-5100, www.washingtonservice.com. The Washington Service tracks insider trading information filed with the Securities and Exchange Commission. The above data is compiled by The Washington Service from Form 144 filings in the period from 2/1/2005 to 12/31/2018; ranking is based on aggregate data for this period. Data from the period 2/1/2005 to 5/31/2009 reflects the formerly separate businesses of the Global Wealth Management Group of Morgan Stanley & Co. LLC and the Smith Barney division of Citigroup Global Markets Inc. that now form Morgan Stanley Smith Barney LLC. This data also includes transactions from Morgan Stanley & Co. LLC. Information contained herein was obtained from sources believed reliable, but the accuracy and completeness thereof cannot be guaranteed. Information contained herein is subject to change.


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Put Your Wealth to Work

If you find that your wealth is disproportionately weighted in company stock or the restrictions placed on the sale of your shares are limiting your personal financial growth, we offer strategic guidance and sophisticated strategies to help you gain greater access to your wealth.

We look forward to answering specific questions you may have about our Executive Financial Services platform. Please reach out to your Morgan Stanley Financial Advisor, who will be glad to walk you through the critical steps to access our specialized guidance and tailored solutions. You also can contact EFS directly at executivefinancialservices@morganstanley.com

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