Restoring Investor Confidence: An Appropriate Sanctions Regime for the Global Market

Abstract

‘The phenomenon of globalisation has erased national boundaries and re-cast national capital markets into: part of the global market. I so doing it has created challenges to the global regulatory structure. Recent wrmoil in the financial markets of South East Asia and its wide sweeping and devastating effects have highlighted deficiencies in the capital markets. The inability of a country ’s financial system to cope with the rapidly changing landscape of global financial markets brings home the point that urgent action must be taken 10 restore the shattered confidence of investors. Tn the context of slobalisation, its no longer sufficient 0 address the issue of investor confidence purely from a national perspective. Coordinated international efforts are a pre-requisite for providing safeguards that are 50 necessary 10 restore that confidence. This article canvasses the view that an appropriate uniform sanctions regime would be one important regulatory strategy which aids in the process of instilling faith in the faimess and integrity of the international markets.