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HR 1097 114th Congress House Finance and Financial Sector Criminal investigation, prosecution, interrogation Financial services and investments Fraud offenses and financial crimes Securities

Ban Insider Trading Act of 2015

Introduced: February 26, 2015 Introduced by: Lynch, Stephen F. Democratic · Massachusetts See on congress.gov
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Feb 26, 2015
Referred to the House Committee on Financial Services.
Feb 26, 2015
Introduced in House
 Plain-English summary Congressional Research Service

Ban Insider Trading Act of 2015

This bill amends the Securities Exchange Act of 1934 to make it unlawful to purchase or sell any security, or securities-based swap agreement, that is based upon information that the person knows (or should know) is material inside information.

"Inside information" is defined as information that is nonpublic and obtained:

  • illegally,
  • directly or indirectly from an issuer who expects either confidentiality or that it will only be used for a legitimate business purpose, or
  • in violation of a fiduciary duty.

"Material information" is defined as information relating to an issuer or to a security which, if it were made public, would likely have a significant effect upon the security's price.

Subjects a person to liability to prosecution for trading in prohibited securities while in possession of material nonpublic information if the person, without a legitimate business purpose, discloses intentionally to another person information that the discloser knows (or should know) is material inside information.

What's happening now February 26, 2015

Referred to the House Committee on Financial Services.

 Committees of jurisdiction 1