Chinese Wall Legal Term7 min read

The Chinese Wall legal term is a term that is used in the legal profession and refers to the barrier that is set up between the legal and investment divisions of a company in order to prevent confidential information from being shared. This term is often used in the context of securities law and is meant to protect investors by ensuring that they are not privy to any inside information that could give them an unfair advantage in the stock market.

The concept of the Chinese Wall was first introduced in the 1930s by Ferdinand Pecora, who was a US senator and the chief counsel of the US Senate Committee on Banking and Currency. At the time, Pecora was investigating the practices of the investment banking industry and was concerned about the potential for insider trading. He noted that there was a need for a barrier between the legal and investment divisions of a company in order to protect confidential information, and the term “Chinese Wall” was coined in reference to the Great Wall of China, which was meant to protect the country from invasion.

The concept of the Chinese Wall was later incorporated into securities law in the United States, and it has also been adopted by other countries, including Canada and Australia. In Canada, for example, the Canadian Securities Administrators issued a staff notice in 2001 that clarified the meaning of the Chinese Wall and outlined the steps that companies should take to ensure that there is a proper separation between the legal and investment divisions.

The Chinese Wall is meant to protect investors by ensuring that they are not privy to any inside information that could give them an unfair advantage in the stock market.

There are a number of steps that companies can take to create a proper Chinese Wall, including:

– Establishing a clear separation between the legal and investment divisions of the company

– Ensuring that employees in the legal and investment divisions are not allowed to communicate with each other

– Putting in place procedures to prevent confidential information from being shared between the legal and investment divisions

The Chinese Wall is a term that is used in the legal profession and refers to the barrier that is set up between the legal and investment divisions of a company in order to prevent confidential information from being shared.

Is the term Chinese wall still used?

The term “Chinese wall” is still used to describe the legal and ethical barriers that are created to prevent the sharing of confidential information between different parts of a company.

The term was first used in the early 1900s to describe the barriers that were created between the different departments of a company in order to prevent the sharing of confidential information.

The term is still used today to describe the legal and ethical barriers that are created to prevent the sharing of confidential information between different parts of a company. These barriers are necessary to protect the privacy of the company’s shareholders and employees.

The term “Chinese wall” is often used in the context of the securities industry, where it is used to describe the barriers that are created to prevent the sharing of confidential information between the investment banking and brokerage divisions of a company.

What is the Chinese wall called?

The Chinese Wall is a term used to describe the Great Wall of China. The wall was built over a period of 2,000 years and stretches for more than 6,000 kilometers.

Why is it called China walls?

The term “China walls” is derived from the Great Wall of China. The Great Wall is a series of fortifications made of stone, brick, tamped earth, wood and other materials, generally built along an east-to-west line across the historical northern borders of China to protect the Chinese states and empires against raids and invasions by various nomadic groups.

The term “China walls” is also used to refer to any barrier or obstacle that impedes the flow of people or goods.

Where does the saying Chinese wall come from?

The saying “Chinese wall” is often used to describe a barrier that is meant to prevent communication between different parts of an organization. But where does this phrase come from?

The term “Chinese wall” was first used in the 1920s to describe the separation between the investment banking and securities businesses. At the time, these businesses were owned by different companies, and there was a fear that information would be shared between the two businesses and that this would give one company an unfair advantage.

To prevent this from happening, the two businesses developed a system where information was not shared between them. This system was known as the “Chinese wall”, as it was thought that this would prevent the businesses from being influenced by each other.

The term “Chinese wall” was later used to describe the separation between the legal and accounting businesses. Again, there was a fear that information would be shared between the two businesses and that this would give one company an unfair advantage.

To prevent this from happening, the two businesses developed a system where information was not shared between them. This system was known as the “Chinese wall”, as it was thought that this would prevent the businesses from being influenced by each other.

The term “Chinese wall” is now often used to describe any barrier that is meant to prevent communication between different parts of an organization.

What is an ethical wall in law?

An ethical wall is a term used in law to describe a legal barrier that is erected to prevent improper or unethical communication between two or more parties. The purpose of an ethical wall is to protect the integrity of the legal process by preventing improper communication between prosecutors and defense attorneys, for example, or between regulators and the regulated.

An ethical wall can take many different forms, but typically it is a physical barrier, such as a locked door or a separate room, that is used to prevent direct communication between the two or more parties. Sometimes an ethical wall is less tangible, such as a policy or procedure that is put in place to prevent communication between the parties.

An ethical wall is sometimes also referred to as a Chinese Wall. The term was first used in the early 1970s to describe the legal barrier that was erected by the SEC to prevent improper communication between the enforcement and accounting divisions of the agency.

Where does the term Chinese wall come from?

The term “Chinese wall” has several different meanings, but is most commonly used to describe a business practice where information is restricted from being shared between different parts of a company in order to prevent conflicts of interest.

The term is said to have originated in the early 20th century when a group of Wall Street financiers were attempting to invest in a Chinese railway. They were unsuccessful in their attempts because the railway’s owner, the British government, was concerned that the American financiers would gain too much information about the railway and be able to outcompete them.

The term was later adopted by the business community in the United States to describe the various measures that were taken to prevent information from being shared between different parts of a company. These measures usually included the establishment of separate divisions within a company and the prohibition of communication between these divisions.

What is the purpose of the Chinese wall?

The Chinese wall is a term used to describe the barriers that have been erected in China to prevent the free flow of information between different parts of the country.

The first wall was built in the 7th century to protect the country from the Arabs, and subsequent walls were built in subsequent centuries to restrict the movement of people and information.

The purpose of the Chinese wall is to prevent the free flow of information between different parts of the country, and to protect the ruling party from opposition.