In business, a Chinese wall is an information barrier implemented within a firm to separate and isolate persons who make investment decisions from persons who are privy to undisclosed material information which may influence those decisions. This is a way of avoiding conflict of interest problems.
In general, all firms are required to develop, implement, and enforce reasonable policies and procedures to safeguard insider information and to ensure that no improper trading occurs. Although specific procedures are not mandated, adopted practices must be formalized in writing and be appropriate and sufficient. Procedures should address the following areas: education of employees, containment of inside information, restriction of transactions, and trading surveillance.
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Famous quotes containing the word wall:
“A man whose mind feels that it is captive would prefer to blind himself to the fact. But if he hates falsehood, he will not do so; and in that case he will have to suffer a lot. He will beat his head against the wall until he faints. He will come to again and look with terror at the wall, until one day he begins afresh to beat his head against it; and once again he will faint. And so on endlessly and without hope. One day he will wake up on the other side of the wall.”
—Simone Weil (1909–1943)