Ban Insider Trading Act of 2015

To amend the Securities Exchange Act of 1934 to prohibit trading on material inside information. 1. Short title This Act may be cited as the Ban Insider Trading Act of 2015 2. Prohibiting trading on material inside information (a) In general Section 10 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78j (d) Trading on material inside information (1) In general To purchase or sell any security, or any securities-based swap agreement, based on information that the person knows or, considering factors including financial sophistication, knowledge of and experience in financial matters, position in a company, and amount of assets under management, should know is material information and inside information. (2) Rules of construction Nothing in this subsection may be construed— (A) to affect liability under subsection (b); or (B) to require for an action under paragraph (1) a personal benefit to any party. (3) Definitions In this subsection: (A) Inside information The term inside information (i) nonpublic; and (ii) obtained— (I) illegally; (II) directly or indirectly from an issuer with an expectation of confidentiality or that such information will only be used for a legitimate business purposes; or (III) in violation of a fiduciary duty. (B) Material information The term material information . (b) Liability for disclosing material inside information Section 20(e) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78t(e) (1) by striking (e) For (e) Prosecution of persons who aid and abet violations (1) In general For ; and (2) by adding at the end the following: (2) Prosecution of persons who facilitate violations of section 10(d) A person shall be deemed to have violated section 10(d) if the person intentionally discloses without a legitimate business purpose to another person information that the discloser knows or, considering factors including financial sophistication, knowledge of and experience in financial matters, position in a company, and amount of assets under management, should know is material information and inside information, as such terms are defined, respectively, in section 10(d)(3). . (c) Technical amendment Section 10 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78j exchange— exchange:

Summary: Ban Insider Trading Act of 2015 This bill amends the Securities Exchange Act of 1934 to make it unlawful to purchase or sell any security, or securities-based swap agreement, that is based upon information that the person knows (or should know) is material inside information. "Inside information" is defined as information that is nonpublic and obtained: illegally, directly or indirectly from an issuer who expects either confidentiality or that it will only be used for a legitimate business purpose, or in violation of a fiduciary duty. "Material information" is defined as information relating to an issuer or to a security which, if it were made public, would likely have a significant effect upon the security's price. Subjects a person to liability to prosecution for trading in prohibited securities while in possession of material nonpublic information if the person, without a legitimate business purpose, discloses intentionally to another person information that the discloser knows (or should know) is material inside information.