CMA steps up enforcement with whistleblowers portal

The Capital Markets Authority (CMA) is enlisting the public’s help in cracking down on financial malpractices.

This follows the launch of an anonymous reporting portal which persons with verifiable information on market misconduct can give information to strengthen the regulator’s enforcement.

According to CMA Chief Executive Officer Paul Muthaura, improving the anonymous portal will help the authority enhance market surveillance in a bid to restore investor confidence.

“This helps ensure that market confidence can be strengthened and failures in integrity are responded to in a timely manner,” Mr Muthaura said.

The CMA is particularly keen to weed out insider trading, share price as well as doctoring of financial statements which could expose to losses.

The CMA has in the past grappled with cases of alleged front running where brokers are accused of trading in their customers’ shares without their authorization which led to the collapse of several brokerage firms.

This dented investor confidence, with the regulator keen to crack the whip to get investors trooping back to the capital markets.

The portal will be available on the CMA website.

Through the portal, whistleblowers will indicate the nature of the malpractice or allegation, the place, date and time of its occurrence, information on key suspects and details of persons who can verify or provide further information.

The informants will also be required to attach supporting documentation to assist the investigations team.

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CMA capital markets investor confidence financial malpractice whitleblowers

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