Posted By: *W*W*
Definition of Insider - 08/26/14 11:27 PM
Looking for a definition of an Insider. Will someone point me in the right direction? Not finding it in the Exam Manual.
Posted By: Xian Ngyuen
Re: Definition of Insider - 08/26/14 11:38 PM
SEC Rules 10b5-1 and 10b5-2 might help. Generally it is someone who possesses material non-public information.
Posted By: Elwood P. Dowd
Re: Definition of Insider - 08/27/14 12:02 PM
Without knowing the context, we're guessing. However, if you mean for the purposes of SAR filing:
...directors, officers, employees, agents or other institution-affiliated parties
If the person works for your bank in almost any context, he or she is an "insider" for the purposes of identifying and reporting "insider abuse."
And if you go to the FDIC Act, the definition of institution affiliated party is:
(u) INSTITUTION-AFFILIATED PARTY.--The term "institution-affiliated party" means--
(1) any director, officer, employee, or controlling stockholder (other than a bank holding company or savings and loan holding company) of, or agent for, an insured depository institution;
(2) any other person who has filed or is required to file a change-in-control notice with the appropriate Federal banking agency under section 7(j);
(3) any shareholder (other than a bank holding company or savings and loan holding company), consultant, joint venture partner, and any other person as determined by the appropriate Federal banking agency (by regulation or case-by-case) who participates in the conduct of the affairs of an insured depository institution; and
(4) any independent contractor (including any attorney, appraiser, or accountant) who knowingly or recklessly participates in--
(A) any violation of any law or regulation;
(B) any breach of fiduciary duty; or
(C) any unsafe or unsound practice,
which caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, the insured depository institution.