<img src="https://ws.zoominfo.com/pixel/EK6Js72UOW761O6mLa8g" width="1" height="1" style="display: none;">

SEC Focuses on MNPI and Code of Ethics Issues

The SEC issued the Risk Alert Investment Adviser MNPI Compliance Issues to provide investment advisers, investors, and other market participants with information concerning notable deficiencies that the the Division of Examinations (“EXAMS”) has cited related to material non-public information (MNPI) and Code of Ethics Issues.

Read More

Individuals Charged in Relation to Insider Trading in Singapore

The Monetary Authority of Singapore (MAS) released a press release stating that three individuals were charged for illegally communicating non-public and material information and using such information to buy shares in a company. The investigation was jointly conducted by the Monetary Authority of Singapore and the Commercial Affairs Department of the Singapore Police Force.

Read More

Proposed Rule 10b5-1 Changes Signal Increased MNPI Scrutiny

The U.S. Securities and Exchange Commission has released expected proposed amendments to Rule 10b5-1 to enhance disclosure requirements and investor protections against insider trading.  According to the SEC release, the amendments “aim to address critical gaps in the SEC’s insider trading regime and to help shareholders understand when and how insiders are trading in securities for which they may at times have material nonpublic information.”

Read More

Key Factors Shaping Market Abuse Regulations

During 2020, many factors have shaped the regulations and enforcement actions to maintain market integrity and place the interests of clients ahead of firms and individuals. In addition to the challenges faced by compliance and risk departments, the number of people trading worldwide has risen, pressuring regulators and compliance departments to quickly act to monitor conflicts of interest and prevent individuals from taking market advantage.

Read More

MNPI Remains a High Risk Area for Compliance

Failing to adequately manage Material Non-Public Information (MNPI) remains a high risk area for compliance, as evidenced by recent actions in the U.S. and the U.K. A private equity firm paid $1 million to settle SEC charges for failing to implement effective Insider Trading compliance policies. The FCA published a Decision Notice fining a former CEO £658,900 for market abuse and banning him from future roles linked to regulated activity.

To avoid hefty fines and actions, firms must have comprehensive and actionable policies and procedures around the management of MNPI and insider lists to minimize risk.

Read More