The Regulation of Insider Trading in Canada: A Historical Comparative Perspective

Abstract

A well developed anti-insider trading regulatory framework is in place in Canada. This Canadian anti-insider trading regulatory framework is actually characterised by its relatively stringent but effective statutory prohibition on insider trading. It is against this background that an overview historical comparative analysis of the relevant Canadian and South African insider trading laws will be carried out in this article to explore their similarities and differences. This is primarily done to expose certain flaws that are embedded in such laws and to recommend, where necessary, possible solutions that could be utilised by policy makers to enhance the combating of insider trading in South Africa. To this end, any meaningful lessons that can be learnt and innovations that can be recommended for adoption in South Africa will be identified and briefly discussed. Furthermore, in addition to the comparative analysis that is done under each sub-heading, the article also provides an overall overview evaluation of the anti-insider trading regulatory and enforcement framework in Canada in order to recommend possible measures that could be employed in South Africa to effectively combat insider trading.

DOI: 10.5901/mjss.2014.v5n4p144