what is an example of an ethical wall 
a financial services firm might have a corporate investment arm that is acting on the behalf of a public company planning a takeover of a rival company the talks are highly confidential not least because of the potential for illegal insider trading on the information yet the same firm has investment advisers in another division who may be actively advising clients to buy or sell stock in the companies involved an ethical wall is supposed to prevent any knowledge of the takeover talks from reaching the investment advisers the need for an ethical wall policy was strengthened in 2002 by the passage of the sarbanes oxley act sox which mandated that companies have stricter safeguards against insider trading 2the concept of an ethical wall exists in other professions the ethical wall may be temporary or permanent for example if a legal firm is representing both sides in an ongoing legal dispute a temporary wall may be placed between the two legal teams to prevent actual or perceived collusion or bias 