Massachusetts to Regulate Expert-Network Firms in Wake of Insider Cases

Massachusetts plans to regulate expert-network firms, the first state in the U.S. to set rules for an industry that was caught up in the federal government’s insider-trading investigation.

The proposed regulation will require state-registered investment advisers that pay expert-network firms to obtain written certification that the firms aren’t subject to any confidentiality restrictions and won’t provide confidential information, Secretary of the Commonwealth William F. Galvin said today in an e-mailed statement.

Read more: Massachusetts to Regulate Expert-Network Firms in Wake of Insider Cases — Bloomberg News