how long must a 10b5 1 be in place before it can be acted upon 
the sec has recently declared a 90 day mandatory cooling off period before a 10b5 1 plan can be implemented this is to avoid the appearance of potential insider trading and offers the company insider an affirmative defense once they enact their 10b5 1 trading plan the bottom linerule 10b 5 sets regulations against insider trading the rule lays out the types of information considered material nonpublic information mnpi and outlines ways that insiders can violate sec insider trading regulations and expose themselves to penalties and fines rule 10b5 1 was created to allow senior company officials to transact in the company s stock and avoid insider trading prohibitions the insider can adopt an affirmative defense for such trading by creating a plan in advance that details what transactions the insider intends to make 