en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Financial Glossary
      
Chinese wall
       
 
Back

Chinese wall

 Search definitions     
  Search  

Chinese wall
The ethical (not physical) barrier between different divisions of a financial (or other) Institution to avoid conflict of Interest.
    
A Chinese Wall is said to exist, for example, between the corporate-advisory area and the brokering department to separate those giving corporate advice on takeovers from those advising clients about buying shares. The "wall" is thrown up to prevent leaks of corporate inside information, which could influence the advice given to clients making investments, and allow staff to take advantage of facts that are not yet known to the general public.
    
Maintaining client confidentiality is crucial to any firm, but particularly large multi-service businesses. Where firms are providing a wide Range of services, clients must be able to Trust that information about themselves Will not be exploited for the benefit of other clients with different interests. And that means clients must be able to Trust in Chinese Walls. Some Wall Street scandals in recent years, however, have made some people doubt  the effectiveness of Chinese Walls, as well placed executives of respectable firms have traded illegally on inside information for their own benefit.
Posted by  LISA Life Insurance Settlement Association
 
  Back  
  Print  
  Email  

 

private banking
private banking
private banking
private banking
private banking
private banking
Get Adobe Flash Player to view the media
FlashPlayer required to view the media

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©