Series 26: Insider Trading And Securities Fraud Enforcement Act Of 1988

Insider Trading and Securities Fraud Enforcement Act of 1988

In 1988 the Insider Trading and Securities Fraud Enforcement Act further expanded the definition of insider trading to include any person who controls the individual at the time of the violation.

It directs managers to create and enforce written policies and procedures designed to prevent the misuse of material, nonpublic information (insider trading). These policies must include the review of employee and proprietary trading, the supervision of inter-departmental communications by the firm’s compliance department, and procedures to review proprietary trading when the firm is in possession of material, nonpublic information. The firm must maintain its analyses and invest