[ziml77]

A couple possible solutions:

Disallow them from being directly involved in investment decisions. Make them hand their money over to someone who will make investments on their behalf with influence limited to broad things like risk profile and the term they want returns over.

Alternatively, implement a minimum holding period. It's much harder to trade on insider info if there must be a long period of time from purchase to sale. One place where I worked wouldn't let us sell until at least 3 months after we purchased any shares.

[TheCondor]

Almost seems like it could be a giant captive market for some specialized funds. Like if you’re in one of these positions you can invest with a new hedgefund without needing to be a qualified investor.