Review raises insider trading questions

A review of trading activity has found that some company directors are still not disclosing trades in their company shares and are continuing to trade in the weeks before major announcements, raising questions about insider trading. BT Governance Advisory Service reviewed the 2006 trading activity of company directors of the 29 companies that were found to be the worst compliers in an initial study in 2005. The review found no improvement in the number of directors actively trading after books close and before results are announced. There was however, an improvement in the notification of trades by directors. The law requires trading by directors in company shares to be disclosed to the market to avoid the potential for insider trading.

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