The Unibanco Letters - Dual-Hatting Regulations and Global Enforcement
Insider Trading
Legislative Intent
Any person who becomes aware of nonpublic material information as a result of his/her special
situation that is significantly advantageous compared to other general investors with respect to
his/her trading activities. If trading by such individual becomes widespread, the confidence of the
public in the securities market will become impaired and the market may not be able to effectively
accomplish its function.
In the narrow sense:
i. Insider trading by company related persons, etc.
ii. Insider trading by persons related to public tender offerers, etc.
In the broad sense: i, ii +
iii. Duty to submit trading reports of officers and substantial shareholders of listed companies, etc.
(Article 163)
iv. Disgorgement of any short swing profits by officers and substantial shareholders of listed
companies, etc. (Article 164)
v. Prohibition of short sales by officers and substantial shareholders of listed companies, etc. (Article
165)
Morgan Lewis
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