Insider trading
Abstract
Purpose
This paper aims to remind investment firms of the importance of policies, procedures, and supervisory controls to detect the misuse of material, non‐public information.
Design/methodology/approach
Summarizes a recent increase in regulatory concern over insider trading and suggests that firms review their “information wall” procedures.
Findings
At a minimum, a firm's information wall procedures should include the following elements: surveillance of employee trading; supervision of interdepartmental communications, including “walling off” procedures and procedures for “wall crossings”; a review of proprietary training when the firm is in possession of material, non‐public information; employee training and education, and documentation.
Originality/value
Reviews the key elements of an investment firm's insider trading policies.
Keywords
Citation
Burke, T.P. and Jarkowski, H.M. (2007), "Insider trading", Journal of Investment Compliance, Vol. 8 No. 1, pp. 16-21. https://doi.org/10.1108/15285810710739328
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited