The Gaps and Flaws in the Current South African Anti-Market Abuse Enforcement Framework in Relation to Selected Aspects of the Financial Markets

Abstract

The objective of this article is to analyse and reveal that the enforcement of market abuse laws has been and still is, problematic in South Africa. In this regard, the article provides an overview analysis of the gaps and flaws in the current anti-market abuse enforcement framework in relation to some selected specific aspects of the financial markets in South Africa. This is primarily done to increase awareness on the part of the general public, policy makers and other relevant stakeholders and to innovate possible solutions to such flaws and challenges in order to enhance the enforcement of the market abuse ban in South Africa. Moreover, this is done to investigate whether the current South African anti-market abuse enforcement framework is robust enough to deal with some market abuse practices that manifested during the recent global financial crisis. In relation to this, the article seeks to explore this and other enforcement-related concerns by, first, taking a closer look at the adequacy of the South African anti-market abuse enforcement framework with regard to market transparency. Secondly, the adequacy of the South African anti-market abuse enforcement framework with regard to investor due diligence will be discussed. Thirdly, the adequacy of the aforementioned enforcement framework will be examined in relation to issuer transparency. Lastly, a similar examination regarding credit rating agencies will be undertaken.

DOI: 10.5901/mjss.2014.v5n4p236