MyComplianceOffice Blog

The Financial Conduct Authority (FCA) issued an edition of Market Watch this month that shares the regulator’s concerns and findings about control of access to inside information. In the publication, the FCA highlighted the conviction of Fabiana Abdel-Malek, a former Compliance officer in the London branch of a major investment bank.  

On May 7, 2019, U.S. Representative James Himes (D-Conn) introduced the “Insider Trading Prohibition Act,” which would amend the Securities Exchange Act of 1934, by inserting a new section that defines the elements of criminal insider trading. The bill was passed unanimously in the House Financial Services Committee on May 10. 

Technology makes keeping material non-public information (MNPI) in compliance with securities laws and regulations a lot easier. As a longstanding priority to prevent insiders from wielding unfair market advantage, regulators on both sides of the Atlantic have explicit guidelines surrounding the sharing of MNPI among corporate insiders in advance of trading and investment deals.[1] 

All too regularly, we see headlines of another case of insider trading; a recent list of offenders that includes everyone from Goldman Sachs employees to football players. Compliance industry professionals are aware that insider trading laws are complex and vary significantly from country to country. The extent of enforcement also varies from one country to another, with penalties that could cost businesses millions.  Prevention of insider trading begins with the implementation of adequate policies and procedures, along with the development and maintenance of comprehensive records to ensure regulatory guidelines are met.

Brandon Ortiz, Managing Director at Blue River Partners LLC co-hosted a webinar on insider trading with MyComplianceOffice on February 17th. The following is a transcript from the Q&A portion of the February 17^th webinar.