The Importance of a Chinese Wall in Multi-Service Securities Firms
Multi-service securities firms have a high risk of insider trading as information can seep through to other departments. The antifraud provisions of the federal securities laws restricts all persons from trading based on material non-public information. Therefore, multi-service securities firms such as those that offer investment banking, corporate counseling, and retail broker-dealer services must take the necessary steps to prevent the interdepartmental flows of material non-public information about corporate clients. To prevent such occurrences, it is required that firms build an internal Chinese Wall. Read More…