An insider is a person who knows non-public information about a business that trades on the stock market. With an insider, there is a risk that they could use this information to trade in securities for either their 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 are 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.

The other way in which insider status occurs is through an acquisition process. The above timelines apply in the same way, but rather than the IPO date, we would reference the date when the acquisition takes place. 

If I am an insider, what information do I need to share with Wealthsimple? 

We’ll need you to share with us the date when you became an insider, as well as the name and stock ticker of the company you are an insider with.

How does this impact my experience at Wealthsimple? 

If you are 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 customer support team.