The importance to the accountancy world - and other professions - of safeguarding the principle of "Chinese walls
", cannot be understated.
(14.) For an examinition of the regulatory framework in the US and implications on Disclosure and "Chinese Walls
" see Contoudis (2003) and Coffee (2002).
Following the burst of the dot-com bubble in 2003, then-New York Attorney General Eliot Spitzer spear-headed an effort to establish a "Chinese wall
"--a firewall or ethical barrier--to reduce conflicts of interest between research analysts and investment bankers.
AMF said that it had been unable to find evidence of insider trading but that Societe Generale's failure to identify a potential conflict of interest and police its Chinese Walls
were breaches of financial rules.
There is no rule of law that Chinese walls
, or other arrangements of a similar kind, are insufficient to eliminate the risk of disclosure of client confidential information.
Ronald Duska, chairman of ethics at The American College, says companies that combine research with investment management services can avoid problems by disclosing potential conflicts of interest and by using "Chinese walls
" to separate research from other departments.
But when it comes to money I have always been able to rationalise my principles and build Chinese walls
between the two.
Among the obvious are the porous Chinese walls
between investment banks and their brokerage affiliates, stock analysts and the companies they cover, and media that may be less independent than thought.
Others say that IBM has been very diligent about establishing various controls, such as 'Chinese walls
' between Linux and AIX developers, to prevent any kind of code contamination from taking place.
He told them: "There must be maximum unity in Labour's campaigning and the campaign that I lead will have no barriers, divisions or Chinese walls
Well, when you put them all together without Chinese walls
, I think you're going to have some problems down the road.
UK officials have been at pains to stress that they anticipate participating in both European and US stealth programmes, with strict Chinese walls
being maintained between them.