Self-Reporting Rule May Not Aid Insider Trading Crackdown

Law360, New York (January 10, 2013, 5:59 PM EST) -- As the U.S. Department of the Treasury weighs a proposal to require hedge funds to self-report insider trading, attorneys say the rule could add an unnecessary layer of regulation that results in a flood of new tips but few meaningful enforcement actions.

The Treasury’s Financial Crimes Enforcement Network, or FinCen, said Jan. 4 it was planning to issue a proposed rule within the next few months that would place added disclosure requirements on firms registered with the U.S. Securities and Exchange Commission as investment advisers, including...
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