A Step towards the Harmonization of the Regulation of Financial Misconduct in BRICS: A Comparison of the Chinese and South African Regimes for the Prohibition of Insider Dealing

Abstract

With the growing globalization of financial markets comes the need for regulatory convergence as well as standardization of the enforcement of the regulatory environment. Aligning regulatory approaches is crucial in empowering market players to maximize the regulatory benefits provided by foreign jurisdictions and platforms. Attaining that objective necessitates an understanding of the existing regulatory setting by comparing the approaches adopted by different jurisdictions. This article seeks to understand the strategies and mechanisms adopted by two of the most strategically linked nations within the BRICS bloc, China and South Africa, regarding insider trading regulation and its enforcement. What emerges suggests that, while these jurisdictions recognize the threat that insider trading poses to the integrity of their markets, they face serious resourcing and political challenges that weaken regulatory and enforcement efforts aimed at reducing incidence of the offence.