Inside Information
What you should know

Trading on inside information is a criminal offense with global reach. CEOs and directors are among the most exposed — and most visible — when rules are breached.

Why It Matters

High-profile breaches show the scale of impact:

  • A high-profile investment firm – $1.8B fine for insider trading (2013)

  • A well-known public figure and entrepreneur – Prison sentence for insider sale (2004)

  • A private investment firm – $100B market loss, global regulatory fallout (2021)

Insider trading destroys investor trust and raises your cost of capital.

Core Requirements

Across jurisdictions, Inside information regulations converge around three pillars:

Material:

Would impact investor decisions

Non-public:

Not yet disclosed to the market

Precise:

Specific enough to trigger trades

Your Leadership Checklist

Maintain insider lists and trading blackouts

Require pre-clearance of trades for senior executives

Train staff on materiality and red flags

Audit trading activity regularly

Compliance

Strategic Implications

  • Global laws apply regardless of where trades occur

  • Delayed disclosure is under stricter enforcement (ESMA, SEC)

  • AI surveillance now detects real-time trading anomalies

Want the full picture?

Download our executive guide on insider risk, regulatory updates, and global enforcement.

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