Directorate of Market Abuse

Directorate of Market Abuse

The Market Abuse Department is a department within the Financial Services Board (FSB) which carries out the mandate of the Directorate of Market Abuse (DMA).

The DMA is a committee of the FSB with the statutory mandate to investigate cases of market abuse and to enforce the prohibitions against market abuse contained in the Financial Markets Act, Act 19 of 2012 (FMA).

Market abuse in terms of the FMA consists of insider trading (prohibited in section 78), market manipulation (prohibited in section 80), and false reporting (prohibited in section 81).

If the DMA believes that the FMA has been contravened it may refer the matter, to the Enforcement Committee of the FSB for enforcement action to be instituted against the offender, or to the National Prosecuting Authority for criminal prosecution, or apply to a court for an interdict or attachment order in relation to any matter referred to in Chapter X of the FMA.

The prohibitions against market abuse, the DMA's powers to investigate and the administrative sanctions/penalties which the DMA can impose in respect of market abuse are set out in Chapter X (sections 77 to 89) of the FMA for offences committed after 3 June 2013. If an offence took place prior to 3 June 2013 then the provisions of Chapter VIII (sections 72 to 87) of the Securities Services Act, Act 36 of 2004 will apply.

The DMA issues a press release after every meeting to update the public on the status of its current investigations. The determination of the Enforcement Committee in respect of matters referred to it by the Directorate for enforcement action is also published once a matter has been finalised.