Learning objectives
- Examine the difference between public and private-side information in a firm
- Understand what information barriers are
- Recognise the laws and regulations driving the need for Information Barriers
- Identify what conflicts can arise due to the flow of information
- Recognise how information barriers work to control the flow of information
- Explain how violations of 'Chinese Walls' are handled
Welcome
Information Flow
- Managing/limiting the flow of information
Private versus Public Side
- Exercise: Private versus Public Side
Information barriers recap
How are Information Barriers structured?
- Proprietary traders & flow traders
- How are Information Barriers maintained?
- Other purposes
- Investment decision-makers
Control room/compliance
- Regions of operation
Defining inside information
- Applying the Inside Information Rule
- Exercise: What is Inside Information?
Inside information
- Cases of insider dealing
- Exceptions
- Resolution
Inside information can affect anyone
- Examples: How you could receive inside information
- Perceived abuse of the inside information
- Case Study: A finance professional
- Case Study: A desk analyst
- Case Study: An ICG Salesperson
- Resolution: How to avoid perceived improprieties
Your responsibilities
- Case study: Careless sharing
- Exercise
Wall Crossings
- Situations that warrant Wall Crossings
- What should you do upon being Wall Crossed?
Intentional Wall Crossings
- Exercise
- Inadvertent Wall Crossings
- Case
- Exercise
- Case continued
Conclusion
- Notes of advice
Summary
Affirmation
Assessment
Economic Sanctions
Violation of sanctions issued by the UN, the US and the EU which place restrictions on payments and other financial transactions can result in fines as well as criminal charges.