Court Decision Makes Fund Managers Engaged in Insider Trading Personally Liable for Fund Trading Profits
February 20, 2014
Howard R. Elisofon,
Steven D. Feldman
The cost of insider trading just got more expensive for those who get caught. In a February 18, 2014 decision by the U.S. Court of Appeals for the Second Circuit, a split appeals court panel found that an individual held liable for civil insider trading while working at an investment fund can be required to disgorge not only the profits he or she individually made by arranging for the winning trades for the fund, but can also be required to personally disgorge all of the profits that the fund reaped as a result of the illegal trades.
SEC Announces Examination Priorities For 2014
Irwin M. Latner,
Patrick D. Sweeney,
On January 9, 2014, the Securities and Exchange Commission (the "SEC") published its annual letter announcing examination priorities for 2014 (the "Priorities Letter"). The Priorities Letter, which addresses both industry-wide and area-specific initiatives, aims to provide investment advisers, funds, broker-dealers, and other industry participants with a preview of key risks that the SEC intends to monitor and examine in 2014 through the National Examination Program.