Insider Trading & Securities Fraud Enforcement Act of 1988
Insider Trading & Securities Fraud Enforcement Act of 1988 (ITSFEA)
Federal legislation that greatly increased the penalties for trading on material inside information.
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.