Book contents
- The Cambridge Handbook of Compliance
- The Cambridge Handbook of Compliance
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- 1 Introduction: Compliance as the Interaction between Rules and Behavior
- Part I Compliance Concepts and Approaches
- Part II Deterrence and Incapacitation
- Part III Incentives
- Part IV Legitimacy and Social Norms
- Part V Capacity and Opportunity
- Part VI Compliance and Cognition
- Part VII Management and Organizational Processes
- Part VIII Measuring and Evaluating Compliance
- Part IX Analysis of Particular Fields
- 55 Strengthening Tax Compliance by Balancing Authorities’ Power and Trustworthiness
- 56 Compliance in Occupational Safety and Health
- 57 Intellectual Property Compliance: Systematic Methods for Building and Using Intellectual Property
- 58 Insider Trading Compliance Programs
- 59 Antitrust Compliance: Collusion
- 60 Understanding AI Collusion and Compliance
- 61 HIPAA Compliance
- 62 Biopharmaceutical Compliance
- 63 Transnational Anti-Bribery Law
- 64 Data Security, Data Breaches, and Compliance
- 65 Doping in Sports: A Compliance Conundrum
- 66 Food Safety Compliance
- 67 Global Supply Chain Auditing
- 68 Corporations, Human Rights and Compliance
- 69 Aiming for Integrity with Integrity
- References
58 - Insider Trading Compliance Programs
from Part IX - Analysis of Particular Fields
Published online by Cambridge University Press: 07 May 2021
- The Cambridge Handbook of Compliance
- The Cambridge Handbook of Compliance
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- 1 Introduction: Compliance as the Interaction between Rules and Behavior
- Part I Compliance Concepts and Approaches
- Part II Deterrence and Incapacitation
- Part III Incentives
- Part IV Legitimacy and Social Norms
- Part V Capacity and Opportunity
- Part VI Compliance and Cognition
- Part VII Management and Organizational Processes
- Part VIII Measuring and Evaluating Compliance
- Part IX Analysis of Particular Fields
- 55 Strengthening Tax Compliance by Balancing Authorities’ Power and Trustworthiness
- 56 Compliance in Occupational Safety and Health
- 57 Intellectual Property Compliance: Systematic Methods for Building and Using Intellectual Property
- 58 Insider Trading Compliance Programs
- 59 Antitrust Compliance: Collusion
- 60 Understanding AI Collusion and Compliance
- 61 HIPAA Compliance
- 62 Biopharmaceutical Compliance
- 63 Transnational Anti-Bribery Law
- 64 Data Security, Data Breaches, and Compliance
- 65 Doping in Sports: A Compliance Conundrum
- 66 Food Safety Compliance
- 67 Global Supply Chain Auditing
- 68 Corporations, Human Rights and Compliance
- 69 Aiming for Integrity with Integrity
- References
Summary
Abstract: “A significant purpose of the Exchange Act was to eliminate the idea that use of inside information for personal advantage was a normal emolument of corporate office.” In pursuit of that goal, federal law creates significant incentives for corporations to adopt policies designed to prevent illegal trading by insiders. Such policies protect the insiders by providing guidance as to when trading is least likely to result in liability. Given the severe penalties for inside trading, and the inevitable temptation to profit from access to inside information, such policies are necessary to, in a sense, protect insiders from themselves. Even more important, however, such policies also protect the issuer itself from potential controlling person liability. Not surprisingly, perhaps, most public corporations have adopted such policies. This chapter provides an overview of corporate insider trading compliance programs. It sets out the basic legal framework of the federal insider trading prohibition. It then reviews the reasons why corporations adopt compliance programs. The chapter next reviews the basic elements of an insider trading compliance program. Finally, the chapter examines the special case of Rule 10b5-1 compliance programs.
- Type
- Chapter
- Information
- The Cambridge Handbook of Compliance , pp. 855 - 867Publisher: Cambridge University PressPrint publication year: 2021