Overview

An insider is a person who knows non-public information about a business that trades on the stock market. There's a risk that an insider could use this information to trade in securities for either their own or someone else’s benefit.

The term “insider” generally includes a director, senior officer, person, or company that has beneficial ownership, control, or direction over more than 10% of the voting rights for a public company. 

When am I considered to be an insider?

You're considered to be an insider six months before the date when your company goes public. If you become a director or senior officer less than six months before the initial public offering (IPO), then your insider status would begin on the date when you assumed the title of director or senior officer.

Insider status can also occur through an acquisition process. The above timelines still apply, but instead of the IPO date, we would reference the date when the acquisition takes place. 

Reporting your insider status

Please contact our client support team if you believe you're an insider.

We’ll need you to share the following information with us:

• The date when you became an insider.
• The name and stock ticker of the company you're an insider with.

Insider status and the impact on your Wealthsimple experience

If you're determined to be an insider, there will be certain measures taken with your account. Examples of these measures include:

• Asking you about the source of your wealth (how you accumulated your assets).
• Asking you about the source of your funds (where the money used to fund your accounts is coming from).
• Being subject to a higher level of ongoing screening.

For more information or to share information about your insider status, please contact our client support team.