Abstract

Keywords

Financial crimes, financial markets, technology, securities, fourth industrial revolution, challenges, data protection.

……………………………………………………….

Editorial

The inaugural Corporate and Financial Markets Law Colloquium was launched on 24-25 October 2019 at the Faculty of Law, North-West University as the brain child of Professor Howard Chitimira, with a view to offering a platform to students, legal practitioners, regulatory authorities, emerging researchers, established researchers, policy makers and other relevant persons from South Africa and other countries to converge, discuss and share ideas on contemporary corporate and financial markets law-related aspects. This colloquium grew and continued into a second year. Thus, despite challenges arising from the corona virus pandemic (covid-19), the 2nd Annual Colloquium on Corporate and Financial Markets Law was successfully held virtually at the Faculty of Law, North-West University on 29-30 October 2020. The theme of the Colloquium was: embracing technology in corporate, securities and financial markets law and the combating of financial crimes in the 4th industrial revolution (4IR).1 The Colloquium focussed inter alia on the use of innovative technology to do business efficiently and enhance market integrity, good corporate governance standards, public investor confidence, good corporate practices and ethical standards in global financial markets and financial institutions.2 In this regard, it is important to note that the advent of new technology and 4IR has introduced new corporate and financial crimes as well as new regulatory challenges for enforcement authorities in both the developed and developing countries.3 Accordingly, the Colloquium provided a platform for academics and other relevant persons in the financial markets sector to robustly debate and consider better, innovative ways of doing business and the optimal use of technology to combat systemic risks and financial crime

in global financial markets and financial institutions.4 It was noted that the use of artificial intelligence (AI) and the commission of high-frequency trading (HFT), market abuse, corporate fraud, money laundering, front running and other illicit trading practices could be carefully controlled through the effective enforcement of the relevant laws to ensure viable economies, financial institutions and financial markets.5 In this regard, it was further noted that the current technical recession affecting South Africa, the covid-19 pandemic-related global financial woes, the technological war between China and the United States of America (USA) and the Brexit uncertainty justify the need to embrace technology and new ways of doing business to curb financial crimes globally.6

We received a satisfactory number of papers from academics from selected African countries, Europe and Australia, and we had three key-note speakers at the 2nd Annual Colloquium on Corporate and Financial Markets Law, namely Professor Ruth Taplin of the University Leicester, Professor Tracy Gutuza of the University of Cape Town and Dr Tapiwa Victor Warikandwa of the University of Namibia. Thereafter, we decided to publish all good contributions as journal articles. Accordingly, this special edition consists of a selection of articles developed from the presentations delivered at the 2nd Annual Colloquium on Corporate and Financial Markets Law at the Faculty of Law, North-West University, on 29-30 October 2020. Brief outlines and/or overviews of the articles published in this special edition are provided below.

Kilian explores the differences between the members and the shareholders of a friendly society and aspects of the payment of dividends in South Africa and Australia. Osode and Mudzamiri investigate the relationship between technology and corporate takeovers in the USA, the United Kingdom (UK) and South Africa. Asheela-Shikalepo discusses the use of good corporate governance measures to curb corruption and other technology-related crimes in Namibia. Ndlovu unpacks the possible use of AI to enhance the value of patents as corporate assets in South Africa. Chitimira and Ncube examine the regulation and use of AI and other technological measures to

combat cybercrime and financial crime in South African Banks. Ukwueze investigates the regulatory aspects of cryptocurrency and fintech in Nigeria and South Africa. Van Niekerk and Phaladi explore the prospects and challenges of digital financial services in South Africa. Chitimira and Magau provide a legal analysis of the use of innovative technology to promote financial inclusion for low-income earners in South Africa. Sibanda discusses aspects of shareholder oppression and the concept of ubuntu under South Africa’s Companies Act 71 of 2008.

Chitimira and Torerai investigate the nexus between mobile money regulation, innovative technology and the promotion of financial inclusion in Zimbabwe. Marumoagae discusses the need to adopt preventative measures to combat the misappropriation of retirement fund assets in South Africa. Hamadziripi and Chitimira interrogate the integration and reliance on technology to enhance the independence and accountability of company directors in South Africa. Animashaun and Chitimira provide an incisive debate on reliance on the use of technology and lifestyle audits to curb corruption and tax evasion by public officials in Nigeria. Matotoka and Odeku discuss the possible mainstreaming of black women into managerial positions in the South African corporate sector. Chitimira and Ncube examine the use of ingenious technology and the robust enforcement of financial markets laws to curb money laundering in Zimbabwe. Lastly, Warikandwa unpacks key aspects of personal data security in financial services markets in South Africa and the European Union.

Bibliography

Literature

Bromberg, Gilligan and Ramsay 2017 Journal of Business Law

Bromberg L, Gilligan G and Ramsay I "Financial Market Manipulation and Insider Trading: An International Study of Enforcement Approaches" 2017 Journal of Business Law 652-679.

Chavda and Solanki 2014 International Journal of Commerce, Business and Management

Chavda M and Solanki A 2014 "Innovative banking products: Win-Win situation for Customers and Banks" International Journal of Commerce, Business and Management 2319-2828

Chibba 2009 European Journal of Development Research

Chibba M "Financial Inclusion, Poverty Reduction and the Millennium Development Goals" 2009 European Journal of Development Research 213-230

Chitimira and Ncube 2020 Journal of African Law

Chitimira H and Ncube M "Legislative and Other Selected Challenges Affecting Financial Inclusion for the Poor and Low Income Earners in South Africa" 2020 Journal of African Law 337–355

De Koker 2006 Journal of Financial Crime

De Koker L "Money Laundering Control and Suppression of Financing of Terrorism: Some Thoughts on the Impact of Customer Due Diligence Measures on Financial Exclusion" 2006 Journal of Financial Crime 26-50

De Koker and Jentzsch 2013 World Development

De Koker L and J Jentzsch "Financial Inclusion and Financial Integrity: Aligned Incentives?" 2013 World Development 267-280

Isayeva and Velieva "Consequences and Prospects of Using Innovative Technologies in Banks"

Isayeva PG and Velieva MS "Consequences and Prospects of Using Innovative Technologies in Banks" in International Scientific Conference (28-30 April 2013 Austria, Salzburg) 147-150

Lawack 2013 Washington Journal of Law, Technology and Arts

Lawack VA "Mobile Money, Financial inclusion and Financial Integrity: The South African Case" 2013 Washington Journal of Law, Technology and Arts 318-346

Louis and Chartier 2017 Journal of Comparative Urban Law and Policy

Louis L and Chartier F "Financial Inclusion in South Africa: An Integrated Framework for Financial Inclusion of Vulnerable Communities in South Africa's Regulatory System Reform" 2017 Journal of Comparative Urban Law and Policy 170-196

Luiz 1999 South African Mercantile Law Journal

Luiz SM "Insider Trading Regulation-If at First You Don't Succeed…" 1999 South African Mercantile Law Journal 136-151

Mohammed, Mensah and Gyeke-Dako 2017 The African Finance Journal

Mohammed JI, Mensah L and Gyeke-Dako A "Financial Inclusion and Poverty Reduction in Sub- Saharan Africa" 2017 The African Finance Journal 1-22

Ngwenya, Pelser and Chivaura 2018 South African Journal of Economic and Management Sciences

Ngwenya B, Pelser T and Chivaura T "Perceptions of Post-multicurrency Regime Financial Inclusion Confidence Challenges in Zimbabwe" 2018 South African Journal of Economic and Management Sciences 1-15

Osode 2000 Journal of African Law

Osode PC "The New South African Insider Trading Act: Sound Law Reform or Legislative Overkill?" 2000 Journal of African Law 239-263