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I'd have no issue with it at all if they simply followed basic industry standard regulation. Employees of investment companies usually need to adhere to somethi
by rich_sasha 5y ago
I'd have no issue with it at all if they simply followed basic industry standard regulation. Employees of investment companies usually need to adhere to something like this:
- Need pre-clearance to trade in a share or ETF, sometimes mutual funds
- Once pre-clearance granted, need to trade within a short window of time (say 24hrs)
- Minimum holding time of 30 days
- Ban on trading any assets/industries that you have close connection to
- Regular disclosures of investment portfolio
Sure you may find a market for internal tip-offs, but (1) that's already a bit harder, (2) there's a clear record of not only trading, but also intentions, and (3) the minimum holding period makes insider trading less attractive. So a fellow senator gives you a tip that a company might go up 5%. OK, but that's a short-term thing, usually, what's going to happen over 30 days is less clear.
Plus covering everyone in the same household.