Chinese wall meaning

An internal information barrier within a firm that segregates teams to stop confidential or inside information reaching colleagues whose duties could create a conflict of interest. Used in financial services and professional services, it relies on physical, electronic and procedural controls (separate reporting lines and premises, restricted systems access, need-to-know, deal/restricted lists, wall‑crossing protocols, staff training and monitoring). The expression is descriptive rather than statutory. UK regulators (FCA/PRA) and the Central Bank of Ireland require effective conflicts of interest arrangements; guidance recognises information barriers as one way to comply, particularly under MiFID II conduct rules and market abuse controls. In legal practice, courts apply strict standards to such barriers when a firm acts against a former client: see Prince Jefri Bolkiah v KPMG [1999] (England & Wales), followed in Scotland and Northern Ireland, with broadly consistent approaches in Ireland. Robust, documented barriers and client consent are often essential. Typical contexts include separating advisory/corporate finance from research or sales/trading, and quarantining due‑diligence or insider lists during takeovers. The term “Chinese wall” is increasingly avoided; “information barrier” or “ethical wall” is preferred across the UK and Ireland.