Reaffirming the Role of the Directorate of Market Abuse and the Meaning of 'Inside Information' in the Adjudication of Insider Trading Cases: Zietsman and Another v Directorate of Market Abuse and Another 2016 1 SA 218 (GP)

摘要

Insider trading activities are outlawed in many countries, including South Africa. Such activities have interfered with the smooth operations of various financial markets in both developed and developing countries to date. Anti-insider trading regulatory authorities have grappled to combat the occurrence and negative effects of insider trading in the South African financial markets since the early 1970s. This has been exacerbated in part, by the complexities involving the meaning and interpretation of inside information in relation to insider trading offences by the courts, the Directorate of Market Abuse and the Enforcement Committee. Moreover, the adoption of few anti-insider trading enforcement approaches has contributed to the inconsistent enforcement of the insider trading prohibition in South Africa. These flaws have been recently exposed by the EC determination and the subsequent High Court judgment in Zietsman and Anotherv Directorate of Market Abuse and Another 2016 1 SA 218 (GP). To this end, the article provides an overview analysis of this landmark case which has brought some legal certainty regarding the court's application and interpretation of the meaning of 'inside information' in relation to the adjudication of insider trading cases in South Africa.