Legal analysis: Information barrier system refers to a series of management measures taken by securities companies to control the improper flow and use of inside information and undisclosed information (hereinafter referred to as "sensitive information"). The definition of insider information and undisclosed information shall be governed by the provisions of the Securities Law and the Criminal Law. Securities companies should manage sensitive information according to the principle of need to know, and ensure that sensitive information is only known by staff members with reasonable business needs or management responsibilities. Staff of securities companies have strict confidentiality obligations for sensitive information they know in any way, and may not use sensitive information to seek illegitimate interests for themselves or others. When a securities company employs an external service provider, it shall agree with the service provider to keep confidential the sensitive information obtained in the course of service.
Legal basis: Securities Law of People's Republic of China (PRC).
Article 3 The issuance and trading of securities must follow the principles of openness, fairness and impartiality.
Article 4 The parties involved in securities issuance and trading activities have equal legal status and should follow the principles of voluntariness, compensation, honesty and credibility.
Article 5 The issuance and trading of securities must abide by laws and administrative regulations. Fraud, insider trading and manipulation of the securities market are prohibited.
Article 6 Securities industry, banking industry, trust industry and insurance industry are operated and managed separately, and securities companies are established separately from banks, trusts and insurance institutions. Unless otherwise stipulated by the state.