In the aftermath of the U.S. Supreme Court’s December 2016 order upholding the conviction in Salman v. U.S.
, it is crucial for asset managers to have a thorough, nuanced and up-to-date understanding of what constitutes insider trading. The Salman
case is likely to have a dramatic impact on the interpretation of insider trading law for years to come. Though it is possible to discern a fundamental test for when insider trading exists, some gray areas persist in insider trading law. This article summarizes a recent talk delivered by Ralph A. Siciliano, partner at Tannenbaum Helpern Syracuse & Hirschtritt, that discussed the points above. For additional insight from Siciliano, see our two-part series “How Can Hedge Fund Managers Apply the Law of Insider Trading to Address Hedge Fund Industry-Specific Insider Trading Risks?”: Part One
(Aug. 7, 2013); and Part Two
(Aug. 15, 2013). For further commentary from Tannenbaum attorneys, see “Why and How Should Hedge Fund Managers Conduct Background Checks on Prospective Employees? (Part One of Three)
” (Oct. 3, 2013); and our two-part series on closing hedge funds: “How to Close a Hedge Fund in Eight Steps
” (May 8, 2014); and “When and How Can Hedge Fund Managers Close Hedge Funds in a Way That Preserves Opportunity, Reputation and Investor Relationships?
” (Jun. 2, 2014).