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South Africa
Friday, October 3, 2014 - 11:48
Not all bad

The World Economic Forum (WEF) has ranked South Africa first among 144 countries in regulation of securities exchanges for the fifth consecutive year.

South Africa was ranked first out of a 144 countries in the WEF Global Competitiveness Report 2014-2015 for both the regulation of its securities exchange and the auditing and reporting standards to which local companies must adhere. The report was released yesterday.
“As an exchange we continue to strive to provide investors and issuers with a safe and credible environment in which to trade, list and invest,” says John Burke, Director: Issuer Regulation at the JSE.
The Report also ranked South Africa third in the ability to raise finance through the local equity market, third in terms of the effectiveness of corporate boards and second in protecting the rights of minority shareholders. Burke says the country’s excellence in regulatory standards speaks of a sound working relationship between JSE and its regulator, the Financial Services Board (FSB).
Burke says South Africa has a well-developed local investment community and high foreign participation in financial markets. “Regulatory standards cannot be viewed as a set of rules to be drafted and then applied blindly in years to come. Regulation needs to be adjusted and updated constantly according to a changing environment. The JSE works hard to maintain high standards in both formulating and implementing the regulation of our exchange.”
Released annually in September, the report rates countries according to 12 pillars or sets of criteria. These include quality of infrastructure and institutions, efficiency, market sophistication as well as capacity for innovation. Regulation of securities exchanges falls under the eighth pillar for financial market development.
 

Copyright © Insurance Times and Investments® Vol:27.10 1st October, 2014
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