Compliance programs curb risk of insider trading

Article Abstract:

Corporate compliance programs help prevent insider trading in securities, and both SEC policy and shareholder actions can help influence corporate policy and show potential insider traders the importance of complying with corporate policy. Although a bright line test does not emerge from precedent, the Private Securities Litigation Reform Act shows that factors including whether sales by insiders are consistent with prior selling patterns which are well-documented, whether the holdings were retained by insiders after the sales, and whether these insiders were involved in supposed fraud are important.

Management, Corporate governance

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Countries strengthen insider trading laws: G-7 nations emulate the United States in fashioning laws and enforcing existing regulations

Article Abstract:

Other members of the Group of Seven, or G-7, industrial countries have begun paying more attention to insider-trading laws and concepts long espoused by the US. More effective laws and stronger enforcement are apparent throughout the group, though most rely on criminal rather than civil enforcement. Canada relies on its provinces, having no relevant federal law. France has for years been second only to the US in the strength of its insider-trading enforcement, while Japan has lagged the others.

international

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SEC's proposal puts end to selective disclosure; tell-all-anti-fraud rules are aimed at ending analysts' improper relationships and insider trading

Article Abstract:

Issues concerning the SEC's Mar 2000 rules proposal requiring prompt, nonintentional public disclosure of nonpublic securities information and a new antifraud rule aim to lprevent the improper elationships between analysts and the companies they follow and to prevent insider trading. The new Rule 10b-51 would increase investor confidence in the marketsand strengthen already existing insider trading law.

Standards, Securities fraud, Disclosure (Securities law)

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