SEC Warns Against Insider Trading During Pandemic
The 2019 Coronavirus has impacted the securities markets in unprecedented ways. The SEC and other government authorities have worked to ensure that our markets have continued to function, as many have transitioned to working remotely and implementing their Business Continuity Plans. During these dynamic circumstances, corporate insiders are regularly learning of new material nonpublic information that may hold an even greater value than under normal circumstances. In a post from the Washington Post, the SEC warns of risk of insider trading during coronavirus market turbulence. Compliance Officers should keep this in mind when reviewing their trade blotters. Reminding staff of their responsibilities and the firm’s polices regarding insider trading can assist firms staying compliant.