Financial Services Companies Collaborate To Build Trust In Markets

In a significant move towards enhancing integrity and trust in South Africa’s financial markets, over 13 financial services companies have come together to launch the draft Market Surveillance Code of Conduct.

This initiative was introduced at Investec’s Market Surveillance Conference held in Sandton, Johannesburg. The primary objective of this collaboration is to foster trust and confidence in the country’s financial markets.

The Market Surveillance Code of Conduct aims to tackle critical issues such as market abuse and anti-competitive practices within the financial sector.

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Market abuse can manifest in various forms, including price manipulation and the disclosure of misleading or false information. A notable example is the Steinhoff scandal, which highlighted the need for stringent surveillance and regulation.

Olano Makhubela from the Financial Sector Conduct Authority emphasized the importance of communication surveillance, particularly in light of past incidents involving the manipulation of the rand.

The code of conduct addresses the misuse of chat rooms where confidential client information was previously shared inappropriately. It sends a clear message: avoid sharing sensitive or confidential information in informal communication channels to prevent market abuse.