Colombia: Regulators to Crack Down on Insider Trading

The chief securities regulator of Colombia, Cesar Prado, says that the country will increase investigations into insider trading and draft new rules to crack down on misconduct in South America’s fourth-largest exchange.   According to Bloomberg, Prado is currently probing 15 to 20 possible cases of insider trading and may begin imposing sanctions in some cases by year end.  He stated that the cases in question involve “the use of inside information by company directors, directors of securities intermediaries and some investors.”

Colombia’s efforts are part of an effort by the region seek to attract more foreign investment and increase trading volume.   Fines, suspension or dismissal of operating licenses are among the possible sanctions being discussed.

Read the Bloomberg article