Selected Challenges in the South African Anti–Market Abuse Enforcement Framework in Relation to Some Aspects of the Financial Markets

Abstract

The objective of this article is to provide an overview analysis of the challenges and/or 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 policy makers and other relevant stakeholders and to innovate possible solutions to such flaws in order to enhance the enforcement of the market-abuse prohibition 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-related challenges 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 remuneration structures and crisis management. Secondly, the adequacy of the South African anti-market abuse-enforcement framework with regard to management of risk will be discussed. Lastly, the adequacy of the aforementioned enforcement framework will be examined in relation to accounting standards.