Financial services technology solutions provider Fiserv, Inc. today banned its directors from trading in the common stock of the company during the “blackout period.”
What is Fiserv doing?
The NASDAQ listed Fiserv will observe a blackout period between March 26, 2020 from 4 pm top April 8, 2020 till 8 am. The company sent notices to its executive officers and directors today, informing them that trading in the company common stocks or any related securities will be banned for them during this period.
The blackout period will help the company ensure compliance with Regulation BTR and the Sarbanes-Oxley Act of 2002. It is related to the company’s merger of the 401(k) Savings Plan of Fiserv, Inc. with the Fiserv 401(k) Savings Plan of its participating subsidiaries. The executive officers and directors will be prohibited from trading the company’s stock either directly or indirectly.
What else changes?
According to the notice, the plan’s participants will not be allowed to change plan investments or take any distributions or loans from the plans. Executive officers and directors will also be prohibited from engaging in any transaction, whether within or outside the plans. This will include options to acquire shares, transactions related to equity securities of Fiserv, and other derivative securities.
Note that Regulation BTR allows a certain type of transaction during the blackout period. This includes purchases or sales that align with the conditions set out in Rule 10b5-1 under the Securities Exchange Act of 1934 as well as bona fide gifts. However, Fiserv has instructed its directors to avoid making any discretionary changes to its company common stock holdings as the blackout period is limited.
If executive officers and directors wish to engage in trades of the Fiserv securities, they must obtain advance written permission from Chief Legal Officer and Secretary of the Company, Lynn S. McCreary. They will also have to follow the regular quarterly trading blackout as usual.