SEC's Warning Shot On Insider Trading Compliance

Law360, New York (April 18, 2008, 12:00 AM EDT) -- Just weeks ago, the United States Securities and Exchange Commission (“SEC”) issued its first Section 21(a)[1] Report in over three years.

This time, the SEC used this enforcement tool to warn players in the U.S. securities markets, including public companies, that it will take a hard look at the existence and efficacy of policies and procedures companies have in force to combat insider trading.

In doing so, the Commission signaled that it may take an aggressive interpretation of existing statutory authority and extend obligations now imposed...
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