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Self-Regulation Of Insider-Trading In Mutual Funds And Advisers, Tamar Frankel
Self-Regulation Of Insider-Trading In Mutual Funds And Advisers, Tamar Frankel
Faculty Scholarship
Mutual funds are required to impose Codes of Ethics on many of their employees. Did this requirement make a difference? After all, similar Codes proliferate in many other financial and business corporations! 4 with fairly miserable results. In fact, the temptations facing employees and managers of many business corporations that published self-imposed Codes are relatively weaker than the temptations facing employees and managers of mutual funds. Yet as compared to mutual funds, these business companies have failed to prevent insider-trading!
I believe that regulated mutual funds are less prone to insider-trading than non-regulated funds and traders because their Codes of …