Insider Trading and Securities Fraud Enforcement Act of 1988

Insider Trading and Securities Fraud Enforcement Act of 1988

In the United States, a 1988 law that significantly increased the penalties associated with insider trading and securities fraud. For example, for insider trading, the Act provided for fines of up to three times the profit an offender made as a result of the inside information. It also provided for cash payments to "whistle-blowers" and civil penalties for managers who, knowing that persons working under them are likely to engage in insider trading, fail to act.

Insider Trading and Securities Fraud Enforcement Act of 1988

The federal legislation that increased the potential liabilities associated with insider trading and other fraudulent activities. This act provides informers with cash awards, allows individuals who claim damages to file suit, and encourages companies to implement improved internal controls.
References in periodicals archive ?
The Boesky scandal was followed by a new flurry of legislative action, resulting in the Insider Trading and Securities Fraud Enforcement Act of 1988 (ITSFEA).
The Insider Trading and Securities Fraud Enforcement Act of 1988 represents the response of this Committee to a series of revelations over the last two years concerning serious episodes of abusive and illegal practices on Wall Street.