Michael Guttentag, professor at LMU Loyola Law School, discussed the need to vet information security practices at mergers and acquisitions law firms to prevent insider trading. Guttentag once worked as an investment banker and noted that he never asked about law firms’ internal controls and procedures for sensitive deal information. “There was a degree of trust, but I don’t think people realized … just how easy it is for someone to carry out an insider trading scheme;’ he said. “You need more than just trust.”
Source: Agenda