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Financial Services

Insider Trading Policy (Financial Firm)

Creating comprehensive insider trading policies requires navigating complex SEC regulations, coordinating multiple compliance requirements, and ensuring every provision meets current regulatory standards. Compliance teams spend hours researching requirements, drafting Chinese wall procedures, and customizing pre-clearance protocols—all while managing risk exposure during the drafting process.

Automation ROI

Time savings at a glance

Manual workflow6.5 hoursAverage time your team spends by hand
With CaseMark8 minutesDelivery time with CaseMark automation
EfficiencySave 48.8x time with CaseMark

The Problem

Creating comprehensive insider trading policies requires navigating complex SEC regulations, coordinating multiple compliance requirements, and ensuring every provision meets current regulatory standards. Compliance teams spend hours researching requirements, drafting Chinese wall procedures, and customizing pre-clearance protocols—all while managing risk exposure during the drafting process.

The CaseMark Solution

CaseMark automates insider trading policy creation with AI-powered drafting that incorporates all essential regulatory components. Generate complete, customizable policies covering MNPI prohibitions, information barriers, restricted lists, and reporting requirements in minutes, ensuring your financial firm maintains robust compliance documentation without the manual effort.

Key benefits

How CaseMark automations transform your workflow

Generate complete insider trading policies in 8 minutes vs. 6+ hours manually

Ensure comprehensive coverage of SEC and FINRA requirements automatically

Customize Chinese wall procedures, pre-clearance protocols, and reporting obligations

Reduce compliance documentation costs by up to 95%

Maintain consistent policy language across all regulatory documents

What you'll receive

Prohibition on Insider Trading
Prohibition on Tipping
Information Barriers (Chinese Walls)
Restricted List Procedures
Pre-Clearance Requirements
Employee Reporting Obligations
Compliance Monitoring and Enforcement
Definitions and Scope

Document requirements

Optional

  • Existing Compliance Policies
  • Regulatory Guidelines
  • Firm Organizational Chart

Perfect for

Compliance Officer
General Counsel
Chief Compliance Officer
Financial Services Attorney
Regulatory Affairs Manager
In-House Legal Counsel

Also useful for

This workflow is applicable across multiple practice areas and use cases

Securities attorneys must draft insider trading policies that comply with SEC Rule 10b-5, Section 16 requirements, and FINRA regulations for broker-dealers and public companies.

This is a core securities law compliance document directly addressing SEC and FINRA regulatory requirements for preventing insider trading and managing material non-public information.

Insider trading policies are essential corporate governance documents that boards and general counsel must implement to protect the company and ensure director/officer compliance with securities laws.

Corporate governance practice heavily involves drafting and maintaining policies governing insider trading, material non-public information handling, and trading windows for executives and board members.

Corporate General85% relevant

Corporate attorneys regularly draft insider trading policies as part of comprehensive corporate compliance programs, particularly for public companies and pre-IPO entities preparing for public offerings.

General corporate practice includes creating and updating insider trading policies for clients, especially when companies go public, implement stock option plans, or establish compliance frameworks.

M&A attorneys need robust insider trading policies and Chinese wall procedures to manage confidential deal information and prevent improper trading during transactions involving material non-public information.

M&A transactions create significant insider trading risks requiring strict information barriers, restricted lists, and pre-clearance procedures to protect deal confidentiality and prevent securities violations.

Frequently asked questions

Q

What sections are included in an insider trading policy?

A

CaseMark generates comprehensive policies covering MNPI prohibitions, tipping restrictions, information barriers (Chinese walls), restricted lists, pre-clearance requirements, and employee reporting obligations. Each section is customizable to your firm's specific structure and regulatory needs.

Q

How long does it take to create an insider trading policy?

A

With CaseMark, you can generate a complete, customizable insider trading policy in approximately 8 minutes. Traditional manual drafting typically requires 6-7 hours of attorney or compliance officer time to research, draft, and review all necessary provisions.

Q

Does the policy comply with SEC and FINRA regulations?

A

CaseMark incorporates current regulatory requirements into policy templates, covering essential compliance elements required by securities regulators. While the output provides a strong foundation, firms should have their compliance team review the final policy to ensure alignment with their specific regulatory obligations.

Q

Can I customize the policy for my firm's specific departments?

A

Yes, CaseMark allows full customization of all policy sections including information barriers between specific departments, restricted list procedures, and pre-clearance workflows. You can tailor the policy to match your firm's organizational structure and compliance framework.

Q

What is the difference between insider trading prohibition and tipping prohibition?

A

CaseMark's policy clearly distinguishes these concepts: insider trading prohibition prevents employees from trading on material non-public information (MNPI), while tipping prohibition prevents employees from sharing MNPI with others who might trade on it. Both sections are automatically included with appropriate legal language.

Q

How do I implement Chinese walls in my insider trading policy?

A

CaseMark generates detailed information barrier provisions that establish procedures to prevent MNPI flow between departments like investment banking and trading. The policy includes specific protocols for physical separation, communication restrictions, and monitoring procedures tailored to financial services firms.

Q

Can I update the policy as regulations change?

A

Yes, you can regenerate or modify your insider trading policy at any time using CaseMark. As regulatory requirements evolve, simply update the relevant sections and generate a revised policy in minutes, ensuring your compliance documentation stays current without starting from scratch.