AN ANALYSIS OF THE REGIME FOR THE ENFORCEMENT OF SECURITIES REGULATION IN SOUTH AFRICA AND PROPOSALS FOR REFORM BASED ON THE UNITED KINGDOM'S EXPERIENCE

Abstract

ABSTRACTThe issue pertaining to the optimal enforcement of securities regulations has been a subject of extensive discussion. However, much as there has been debate as to the effective strategy likely to engender the utmost development of securities markets; what is incontestable is the fact that the enforcement of securities regulation plays a crucial facilitative role in the development of cleaner securities markets. One of the outcomes of the 2007-9 financial crisis has been the realisation that insufficient enforcement of financial regulations played a role in the debacles that preceded the economic crisis. The scandals that the sector experienced therefore underscore regulatory enforcement's critical role of in creating efficient securities markets. It is from these widely exposed scandals and the pursuant economic disruption that an urgent impetus for the reassessment of regulatory strategies is premised. The remit of this thesis is therefore to try to understand the various features that may promote or may have an effect of limiting the objective of attaining effective enforcement of securities regulations. Through a multifaceted approach this thesis seeks to analyze and evaluate two jurisdictions which are characterized by divergent regulatory approaches, enforcement cultures and economic settings. Having done so it attempts to demonstrate that securities enforcement effectiveness may be a combination of several factors and that the same applies to its ineffectiveness. What this thesis endeavors to accomplish is to prove that even though the attainment of optimal enforcement is an elusive aspiration; there is an obligation on the regulators to design appropriate responses that meet the challenges that are inherent in their respective securities markets. The tendency among emerging economies such as South Africa has been to adopt regulatory mechanisms operating in their more mature counterparts. As such, by exposing the flaws that characterize the UK's enforcement regime, this thesis attempts to offer a crucial caution about the risks linked to transplanting regulations into different jurisdictions with different legal and economic environments. It follows therefore that the UK's financial crisis is of relevance to South Africa and having made these salient revelations this thesis makes pertinent recommendations whose implementation would have a considerable impact on reinforcing the existing regulatory measures and their enforcement. Based upon the UK's experience this thesis makes structural, cultural and legislative suggestions whose implementation can arguably strengthen the enforcement regime and lead to the development of cleaner securities markets in South Africa.

Date of Award	31 Dec 2019
Original language	English
Awarding Institution	The University of Manchester
Supervisor	Emilios Avgouleas (Supervisor) & Pierre Schammo (Supervisor)