The House bill aims to establish a legal foundation that is less susceptible to change.
It doesn’t require prosecutors to prove that a defendant knew how a piece of inside information was obtained or whether there was a personal benefit paid to anyone in the chain of communication. Instead, the recipient or provider of an improper tip would be liable for insider trading as long as they were “aware, consciously avoided being aware, or recklessly disregarded that such information was wrongfully obtained or communicated.”
The bill also prohibits people with access to material, nonpublic information from tipping off others if it is “reasonably foreseeable” that the recipient will either trade on the information or forward it to others who will.
‘Enforcement 40’ for 2020
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