Regulatory Alerts2008-05-08
South African Reserve Bank Guidance Note 2/2008 on Personal Account Trading
The South African Reserve Bank issued Guidance Note 2/2008 to establish minimum industry standards for personal account trading by bank employees. While acknowledging that a total ban may drive activity underground, the regulator requires banks to implement robust internal controls, including prior written approval and strict conflict of interest management, if such trading is permitted. These self-imposed rules must be enforced by a designated compliance officer, with the Reserve Bank reserving the right to impose formal regulations if industry standards are not adequately followed.
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