Tim Selby was quoted by Down Jones in an article that discussed the biggest insider-trading case in decades, which centers on a hedge fund. Selby noted that conversations between investment advisers and executives can present legal difficulties, even if when there is no overt attempt to break the law. “You run the risk of learning something,” he says.
Compliance officers can help protect against such issues, “[but] even that won’t be foolproof, because there are so many avenues in which you can learn of insider information.”