The Five Hallmarks of Great Insider Trading Training Programs

Insider trading is typically associated with New York’s famous Wall Street. But you don’t have to be operating at a Gordon Gecko-level to be guilty of it. In fact, it’s possible to be involved in insider trading without even knowing it, which it makes absolutely vital that employees at every level in an organisation receive effective compliance training on the subject.

Insider trading occurs when shares or securities are traded based on material or information not available to the public, regardless of links to the traded entity. Staff at every level in an organization may have access to this type of information, which could be used for their own financial gain. This activity is forbidden and can expose an organisation and the employee to considerable legal and reputational risk.

It is the responsibility of every company to ensure their employees understand their legal obligation not to disclose any information about the company they work for, its partners and clients that could impact the way they do business. In order to help staff, firms should seek insider training programs that boast the following five qualities.

Know your audience

All employees don’t require the same training. The education each receives on insider training should be tailored depending on their education backgrounds, job experience and other relevant information. This can help to distinguish between the training that simply needs to be refreshed and that which needs to be started from scratch.

Up the fun factor with games and simulations

Let’s be honest, for most employees, training is a chore – a time drain that stops them from completing the daily tasks they see as a higher priority. To combat this, the best training programs try to integrate games and simulations into their scheduled. Interactive simulation, wherein the staff member must carry out an assignment relating to the topic their being tutored on, offers the real world experience without the risks that come with failing.

Integrate videos that feature an engaging storyline

As well as games and simulations, the classic training video can help make the topic of insider trading more fun and engaging by illustrating it with a storyline and characters that employees can relate to. It also provides a nice change from text-based learning.

Incorporate real world scenarios

Integrating real world scenarios into training gives staff the chance to make choices that lead to consequences they can gauge and learn from. Tying insider trading training into the real world makes it more tangible and, ultimately, will impact on an employee far deeper once their training has come to an end.

Break the compliance training down into digestible modules

Lengthy modules and endless appraisals can prove trying for everyone. Breaking compliance training down into digestible chunks of information makes it feel like less of a burden and is usually far more effective. Employees should be able to go through their modules in less than half an hour.

Here at Interactive Services, we are experts in insider trading programs and compliance training. We keep up to date with all the latest evolving trends so that you can stay ahead of the crowd when ensuring that your organisation remains compliant.

If you wish to discuss how to develop an insider trading training program that ensures you are compliant, contact us for a free consultation with one of our learning experts today.


Published by Matt Plass and Dan Brown

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