U.S. Rep. Ron Kind today voted to make sure Members of Congress, congressional staff, Executive Branch officials, and judicial officers have to play by the same rules as everyone else regarding insider trading.
"Members of Congress, their staff, and other federal employees should have to abide by the same rules as everyone else," said Rep. Kind. "In no way should they be allowed to make stock decisions based on information not available to the American public. The Stock Act is an important piece of legislation to prevent this reckless behavior and instill greater transparency in our government."
The STOCK Act prohibits Members of Congress from trading stocks and other securities on the basis of confidential information they receive as lawmakers. It makes clear that they are not exempt from the federal law and regulations that ban insider trading. It also requires Members to disclose the purchase or sale of stocks, bonds, commodities futures and other securities within 30 days of notification of the transaction, allowing up to 45-days if there is an extension granted. The information would be posted online. The new reporting requirements would not apply to transactions involving investments in widely held investment funds (i.e. mutual funds or 529s).
"I do not make personal stock investments and have never traded based on private information. Though for full disclosure, I did recently purchase a share of stock in the Green Bay Packers."
Under the STOCK Act, similar disclosure requirements would apply to many federal employees in the executive branch, including the White House, cabinet departments and independent agencies. The Act also prohibits lawmakers, top federal officials and their aides from receiving special access to initial public offerings due to their positions.