We’re thrilled to announce our latest course offering: Insider Trading! Teams working in public and private companies alike can now learn the ins and outs of laws regarding securities and trading, as well as how to handle non-public company information with care.
If you’re looking for Insider Trading training, or if you’re unsure whether you need this course for your team, we’ve got you covered. Below, we’ll cover the basics of Insider Trading, what types of employees need training, and an overview of Ethena’s course.
Let’s dive in!
What is Insider Trading training?
When a person uses material, non-public information (MNPI) to trade public stock or other securities, it’s known as Insider Trading. Insider Trading is illegal in the U.S..
Insider Trading training is designed to inform employees about the laws regarding Insider Trading, their individual responsibility for ensuring MNPI’s safekeeping, as well as the best practices for staying on the right side of Insider Trading laws.
Do your employees need Insider Trading training?
Because Insider Trading deals specifically with the public stocks and securities of an organization, Insider Trading training is most relevant to public companies. However, you may want to consider Ethena’s Insider Trading course for additional reasons.
Your employees need Insider Trading training if your organization . . .
- Is a publicly traded company. All employees of a publicly traded organization are likely more privy to sensitive information than they might think initially. To help prevent an employee from letting MNPI slip, even by mistake, you’ll need to ensure your team is well-prepared and well-informed.
- Is preparing for an initial public offering (IPO). When an organization goes public, employees need additional guidance for how to operate as employees within a publicly traded company. You’ll likely want to include Insider Trading as a part of that onboarding process.
- Deals with the sensitive information of other organizations, especially financial information. If you work at a fintech organization where employees have access to the MNPI of another organization, you’ll definitely need to underline acceptable behavior and how to handle that information appropriately. But MNPI is not limited to strictly financial information; if your employees have access to sensitive information about a public company, you should consider implementing Insider Trading, too.
When in doubt, check with your organization’s legal team for a better understanding. They’ll help you decide if Insider Trading training is needed to better support and protect your employees and the company.
Why your organization should offer Insider Trading training
Fans of Ethena know, when it comes to potential misconduct, we’re in the business of planning for when it happens rather than if it happens. If you’re anything like us, or if you’re on the fence about adding another course to your onboarding list, here are a few reasons why you should be training your team on Insider Trading:
1. Insider Trading is illegal, and the consequences are no joke
While this may seem the most obvious, it’s also the most important thing to weigh when deciding if your employees need proper Insider Trading training. In the US, federal securities law prohibits the buying and selling of a security or stock when in possession of MNPI about that security, as well as tipping others regarding the MNPI. When someone is found to be in violation of these laws, they’re at risk of significant fines and jail time.
2. Training teaches employees to use information appropriately
We wouldn’t be Ethena if we didn’t insert our standard “it’s just the right thing to do” speech here. As employees, it’s our duty to use sensitive and non-public company information for the company’s benefit – not our own.
If you’re a manager, one of the best ways to encourage employees to do the right thing (and follow the right steps when they do the wrong thing or witness someone doing the wrong thing in action) is when an employer provides the right training. The right training provider can model great behavior and help everyone keep each other accountable.
3. Security laws apply to all of us
Even if you’re not a part of a publicly traded company, security laws still apply to everyone. If you think your team might be at risk (does your team have access to another, publicly-traded company’s MNPI?), it’s smart to plan ahead and make sure your team knows how to handle sensitive information when it comes through their inbox or in a casual conversation.
How to prevent Insider Trading?
Preventing Insider Trading from occurring in your organization is a mixture of policies, effective training, and relevant course topics within that training. Let’s dive into Ethena’s course and how it can complement your Insider Trading policy.
Topics included in Ethena’s Insider Trading course
Ethena’s Insider Trading course takes about 25-30 minutes to complete and covers the following topics:
- Introduction to Insider Trading
- Duty of Trust and Confidence
- Material Non-Public Information (MNPI)
- Trading Window Closures
- Financial Information
- Institutional Information
- Safeguarding MNPI
- Legal Information
Insider Trading Rules for Employees
We get it. Employees have a lot to remember, either when new to your company, your industry, or just through the lapse of time. But reminding your employees of Insider Trading rules shouldn’t be a hassle. What if you could send them the training in microlessons throughout the year? Like after an Insider Trading scandal in the news comes out involving other companies? Or perhaps annually as a part of your annual compliance training?
What if you didn’t have to follow up to ensure your employees finished the training? What if … and hear us out here … your employees actually enjoyed your Insider Trading training? (gasp!)
The easiest way to teach Insider Trading rules to your employees is to have an effective compliance training provider. That’s where we come in!
Ethena can complement your Insider Trading Policy
Ethena is a comprehensive training solution with inclusive, engaging training content. We’re kind of like “SNL meets the SEC.” Made with today’s teams in mind and over 80,000 learners training in over 100 countries around the world, we’re making training that not only meets the training needs of teams everywhere, we’re making it easier (and, dare we say, more fun?) to train than ever before.
Here’s why today’s teams choose Ethena as their training provider
- Our stellar course content – Whether you’re looking to train in Harassment Prevention, Data Protection, or configurable Code of Conduct training, Ethena has a host of courses to help you get compliant and build a healthier workplace culture. With innovative training content like bespoke video, graphic novels, and even all-audio options, Ethena helps to underline the importance of training topics while keeping topics feeling fresh and relevant.
- A time-saving administrator experience – Ethena’s training platform automatically curates and delivers training to employees based on their location, managerial status, and more to help save your admins time. Ethena can also integrate with a number of HRIS, LMS, and SSO integrations to automate the process further (and make it easier for your employees to access training). Plus, Ethena’s admin portal provides engagement and completion data at a glance, so admins can keep an eye on their team while letting Ethena take care of the busywork.
- We make training easy to complete – Ethena delivers training via magic link, directly to employee inboxes, meaning that training is only one click away (because who needs another login to remember)? Ethena’s training is designed for both desktop and mobile, so you can take your training on the go, or listen to it while you grab lunch like a podcast. Let’s be honest, most of us don’t wake up in the morning excited to do required trainings, but with Ethena, we’re making completing your training more convenient than ever.
- Our training actually works – According to a Gallup study, when employees enjoy training, they learn from the training. Ethena’s training encourages engagement, with over 65% of Ethena’s learners providing real-time feedback on their training experience (well above the industry standard of 25% engagement). 92% of employees training with Ethena have rated their training positively, and this year, we’ve surpassed 1 Million positive reviews.
Looking forward to trying Ethena’s Insider Trading course for yourself? Chat with us to see a sample training in action, or to get into the details and help prevent Insider Trading once and for all.