[ad_1]
The dismissal of the Competition Commission’s rand manipulation case has raised corners over a lack of transparency in the banking sector.
The Competition Appeals Court dismissed the case against most banks accused of rigged trades involving the rand/dollar pair.
The case dates back to 2017 when the Competition Commission referred numerous local and international banks to the Competition Tribunal for price fixing involving the rand, alleging that the manipulation affected imports and exports, foreign direct investment, public and private debt, and company balance sheets.
It returned to headlines last year when Standard Chartered settled with the commission and agreed to pay R43 million for its role in the scandal.
However, the Competition Appeals Court this week dismissed the commission’s case against most of the banks alleged to be involved based on a lack of evidence, a lack of jurisdiction and overreach.
According to Harry Scherzer, CEO of Future Forex, the ruling shows a major lack of transparency within the banking sector and raises concerns over the efficacy of regulatory oversights.
“It is highly concerning to see the likes of FNB, Standard Bank, and Nedbank being let off the hook due to a lack of direct evidence when Standard Chartered has already been fined for their wrongdoing, and many other international and local banks are still being questioned,” Scherzer said.
“Market manipulation of this scale is likely to involve most, if not all, of South Africa’s major banks, so it feels like a real let-off, and it’s likely due to the size of the legal teams of these banks.”
“The public deserves transparency and confidence in the financial system, and decisions like these erode the trust that citizens place in the banking system as well as the regulatory bodies that govern them.”
Standard Bank, South Africa’s largest bank by income, welcomed the ruling while maintaining its commitment to the rule of law.
“Standard Bank remains committed to supporting the work of regulators, including the Competition Commission. Standard Bank reiterates its belief in and respect for South Africa’s institutions generally and its well-functioning and sound judicial system,” the group said.
The full ruling can be read below (via Saflii):
Read: South Africa’s best and worst banks in 2023 – according to customers
[ad_2]
Source link