SEC Issues Report on Brokerage Firms’ Handling of Confidential Information

The SEC issued a staff report intended to help broker-dealers safeguard confidential information from insider trading and other forms of misuse.  The report — issued by their Office of Compliance Inspections and Examinations (OCIE) — describes strengths and weaknesses identified in examinations into how broker-dealers keep material nonpublic information from being misused.

Lofchie Comment:  All firms that receive inside information must review this report carefully.  It contains a very full discussion of the various ways that broker-dealers may receive inside information and the steps that they should take to control that information.

View report in full here (links externally to SEC website). 

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