Section 16 Center is a new Web-based report system designed to offer faster transactional data needed with the requirements surrounding Section 16 insider transactions. Previously required only quarterly via a Form 4 filing, after the passage of the corporate governance act these transactions were required to be reported to the US Securities and Exchange Commission (SEC) within two business days. Beginning July 30, these reports must be submitted to the SEC electronically.
The product includes tools to assist the client in reviewing, approving and monitoring each step of insider transaction. When an insider initiates a transaction, Schwab contacts the client company electronically for verification and approval, executes the trade and pre-fills the Form 4. The company then receives an electronic alert that the transaction is complete and the Form 4 is ready for review. A completed Form 4 is reviewed by the company, and submitted to the SEC electronically via EDGAR.
All completed forms can be downloaded for retention and posting to the client company’s Web site. Section 16 Center also enables electronic filing of SEC Form 3 and Form 5.
Additional information is available by calling Schwab at 1-877-804-3529.