The Chinese Wall
Harry McVea · 1993
Abstract We have seen that in both the USA and UK there exist extensive controls governing the misuse of inside information. But while such ‘blanket regulation’ has an important role to play in deterring and penalizing insider abuse, conglomerates pose special problems which arguably require special regulatory solutions. Not only is there an increased flow of price sensitive information in the conglomerate context but there is also a greater potential for this information to be misused and for the misuse to go undetected. Furthermore, other conflicts of both duty and interest are also capable of misuse.