Market watchdog needs to name and shame



In some parts of the world, market regulators have increasingly adopted a policy of "name and shame" in relation to proven abuses of trading rules.
The theory is that the opprobrium of professional colleagues is as much a deterrent to wrongdoing as any formal sanction by the authorities.
The action of the UAE's Securities and Commodities Authority (SCA) in banning Riad Kamal, the chief executive of Arabtec Holding, from buying shares for a period of six months for an apparent breach of trading regulations, could perhaps be seen as a welcome extension of that principle to the Emirates's stock markets.
Certainly it could be argued Mr Kamal has suffered as much from the adverse publicity of the past two days as from any material loss he will suffer from the trading ban. Reputation is all-important in business.
But the SCA's new-found toughness is rather blunted by the manner in which the news of Mr Kamal's punishment came out.
It became public information not through the actions of the authority, but through third parties who saw the SCA's verdict and leaked it to news organisations.
Even Mr Kamal was officially unaware of the verdict until yesterday, when he received formal written notification of the SCA's decision.
Two other facts must also be borne in mind before we rush to praise the SCA's new determination.
First, the transactions for which Mr Kamal received sanction occurred in May 2009.
While all market practitioners see the need for thoroughness in investigations, such a long period seems excessive in an apparently simple case.
Second, it has also emerged that 40 other cases of investigation and conclusion were undertaken by SCA in the past year.
None of these have been made public, neither in the fact of their occurring nor in the identities of the participants.
The regulator should be less reluctant to publicise the success of its efforts to root out market abuse. Full marks for determination, but only 5/10 for communication.
 
fkane@thenational.ae

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Hoopla%3Cbr%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMarch%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Jacqueline%20Perrottet%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2010%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%3Cbr%3E%3Cstrong%3EInvestment%20required%3A%3C%2Fstrong%3E%20%24500%2C000%3C%2Fp%3E%0A
The%C2%A0specs%20
%3Cp%3E%0D%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E6-cylinder%2C%204.8-litre%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E5-speed%20automatic%20and%20manual%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E280%20brake%20horsepower%20%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E451Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh153%2C00%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
All you need to know about Formula E in Saudi Arabia

What The Saudia Ad Diriyah E-Prix

When Saturday

Where Diriyah in Saudi Arabia

What time Qualifying takes place from 11.50am UAE time through until the Super Pole session, which is due to end at 12.55pm. The race, which will last for 45 minutes, starts at 4.05pm.

Who is competing There are 22 drivers, from 11 teams, on the grid, with each vehicle run solely on electronic power.

The past Palme d'Or winners

2018 Shoplifters, Hirokazu Kore-eda

2017 The Square, Ruben Ostlund

2016 I, Daniel Blake, Ken Loach

2015 DheepanJacques Audiard

2014 Winter Sleep (Kış Uykusu), Nuri Bilge Ceylan

2013 Blue is the Warmest Colour (La Vie d'Adèle: Chapitres 1 et 2), Abdellatif Kechiche, Adele Exarchopoulos and Lea Seydoux

2012 Amour, Michael Haneke

2011 The Tree of LifeTerrence Malick

2010 Uncle Boonmee Who Can Recall His Past Lives (Lung Bunmi Raluek Chat), Apichatpong Weerasethakul

2009 The White Ribbon (Eine deutsche Kindergeschichte), Michael Haneke

2008 The Class (Entre les murs), Laurent Cantet


Energy This Week

Expert analysis on oil & gas renewables and clean energy

      By signing up, I agree to The National's privacy policy
      Energy This Week