WASHINGTON – The U.S. securities inspector on Monday forewarned corporate executives against insider dealing during inconvenience caused by the coronavirus, in an unusual statement that emphasizes the chaos cascading through financial markets.
Company supervisors, personnel, human resources, investigators, and other outside professionals who have access to material, nonpublic information should be “mindful of their obligations” to keep certain information private and adhere to the prohibitions against illegal securities trading, the co-directors of SEC administration said in an announcement.
The injunction comes in the midst of the growing concerns that some individuals may be collecting access to critical market-moving information ahead of the rest of the world, following a small number of suspiciously timed trades or price activities.
Particularly, the U.S. dollar reduced gain points before the Federal Reserve broadcast last week said that it was opening a new dollar funding facility for nine central banks to alleviate a global dollar crisis.
International markets and businesses have been distraught from the pandemic, which has made it difficult for companies to keep up with their regular reports. The SEC earlier this month said it would grant regulatory assistance on a circumstantial basis for companies seeking to delay mandatory loadings because of issues related to the virus.
The SEC’s Enforcement Division is consigning “substantial resources” to make sure retail investors are not victims of fraud or illegal practices, the SEC officials warned.