Fiserv to prohibit directors from stock trading during “blackout period”
Directors and executive officers of Fiserv will be prohibited from trading in the company’s common stock or related securities from March 26, 2020 until April 8, 2020.
Provider of financial services technology solutions Fiserv, Inc. (NASDAQ:FISV) has sent a notice to its directors and executive officers informing them that they will be prohibited from trading in the company’s common stock or related securities during a “blackout period” which will last from March 26, 2020 at 4:00 p.m. (Eastern Time) until April 8, 2020 at 8:00 a.m. (Eastern Time).
The blackout period is required to comply with the Sarbanes-Oxley Act of 2002 and Regulation BTR in connection with the merger of the 401(k) Savings Plan of Fiserv, Inc. and Its Participating Subsidiaries into the Fiserv 401(k) Savings Plan. The regulations prohibit an issuer’s directors and executive officers from directly or indirectly purchasing, selling or otherwise acquiring or transferring any equity securities of the issuer during a blackout period involving the issuer’s retirement plans.
In this regard, during the blackout period, participants in the plans will not be allowed to take loans or distributions from plan accounts or change plan investments. In addition, directors and executive officers may not engage in any other transaction, within or outside of the plans, involving Fiserv’s equity securities, including pursuant to options to acquire shares or other derivative securities.
Although certain types of transactions are permitted under Regulation BTR, including bona fide gifts or any purchases or sales made pursuant to written plans satisfying the conditions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, Fiserv’s directors and executive officers are advised to avoid any discretionary change in their beneficial ownership of the company’s common stock or other equity securities during the blackout period due to the limited duration of the blackout period.
In any event, directors and executive officers may not trade any Fiserv securities, unless they have advance written permission to do so from Lynn S. McCreary, Chief Legal Officer and Secretary of the Company.
Notwithstanding the expiration of the retirement plan blackout period, directors and executive officers will also be subject to the company’s regular quarterly trading blackout.
