Tuesday, December 06, 2005

submitted. Problems may include lack of interest from attorneys-general or insufficient evidence for prosecutions.
Whatever the case, communication and working structures between offices of attorneys-general and the FSB must still be improved.
Jurisdiction over the Internet, a useful site for insider traders, needs to be considered in legislation.
The shield of anonymity given to traders who deal through nominee companies must also be removed. That kind of protection complicates detection of trading fraud. An upcoming amendment to the Companies Act reduces the legal holdings of nominees in any company to 5%. Not bad. But it is still 5% too far. Where, when they are needed, are the DTIs transforming teeth?
On a similar theme, the FSB must communicate with investors. Regular bulletins or published announcements should detail the number of cases under investigation and progress in bringing offenders to book. Until they are proven guilty, no names need be mentioned. Communication will, however, act as a warning of the FSB's presence.
Take note: there will be no possibility of anonymity for convicted offenders. "That's one of my contributions," says Barrow with some satisfaction.
By: Michelle Joubert


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