Also known as an ethical wall. Arrangements within a business that require information held by a person in the course of carrying on one part of its business to be withheld from, or not to be used for, persons with or for whom it acts in the course of carrying on another part of its business. These arrangements are of particular relevance within financial institutions which deal in shares both as agent and principal. Chinese walls may also be used in very limited circumstances within solicitors' firms.
The glossary to the FCA Handbook (www.practicallaw.com/5-107-6609) sets out the full definition of this term. When considering this term in the context of financial services, reference should be made to the FCA Handbook glossary definition of Chinese wall.