The Directorate of Market Abuse (Directorate) previously reported that it investigated a possible case of a contravention of section 73 of the Securities Services Act 36 of 2004 (insider trading). The Directorate decided to refer the matter to the Enforcement Committee of the Financial Services Board.
The matter related to share transactions in Wescoal Holdings Limited (Wescoal) executed on behalf of Mr Marius Meyer during 3and 4March 2008. Mr Meyer is a director and the approved executive of Exchange Sponsors (Pty) Limited. Exchange Sponsors was the designated adviser to Wescoal.
The Enforcement Committee, at a hearing on 21October 2009, found that the Respondent, Mr Meyer, has contravened section 73 with relation to his share transactions in Wescoal on 3 and 4March 2008, and imposed a penalty of R150000 on the Respondent.
A transcript of the determination and the imposition of the penalties will be available on the Financial Services Board website (http://www.fsb.co.za/) shortly.
The Enforcement Committee Panel that considered the case consisted of Retired Judge President C F Eloff, Ms K Dlepu, Mr E A Moolla and Mr R J G Barrow. Adv Deva Govender appeared on behalf of the Directorate of Market Abuse, and Adv Naseer Cassim SC, appeared on behalf of the Respondent.
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