Asset Management
Flash Briefing: SA to extradite ex-Moz Minister home; FSCA suspends licence of JSE competitor ZAR X; Woolworths
The Financial Sector Conduct Authority (FSCA) suspended the exchange licence of JSE competitor ZAR X on Friday for non-compliance with the Financial Markets Act.
- South Africa plans to extradite former Mozambican Finance Minister Manuel Chang to his home country, rather than the U.S. where he also faces corruption charges, according to two people with knowledge of the matter. Interpol is working on the case and Chang's extradition could take place in the coming days, said one of the people, who asked not to be identified as the South African government has yet to announce its decision. He's been held in a prison outside Johannesburg since being arrested in December 2018 on charges related to a $2bn sovereign debt scandal, while South Africa considered the requests from Mozambique and the US. It's unclear whether the South African government's decision relates to the trial of 19 people, including the son of former President Armando Guebuza, that begins today in Mozambique's capital, Maputo. Chang is among those the southeast African nation indicted in the case. He denies any wrongdoing.
- The Financial Sector Conduct Authority (FSCA) suspended the exchange licence of ZAR X on Friday. "The suspension resulted from ZAR X's non-compliance with section 8(1)(a) of the Financial Markets Act (FMA), read with Regulation 8 and 43(2) of the FMA Regulations, which relate to the liquidity and capital adequacy requirements of an exchange," the FSCA said in a statement. "We don't take this regulatory action lightly, given its impact," FSCA commissioner Unathi Kamlana said in a statement. "Our view, however, is that this is a necessary step to safeguard market integrity and the interest of issuers and the broader investing public. This is the cornerstone of our mandate as the FSCA." ZAR X was launched five years ago, the first new stock exchange in South Africa in 58 years. The exchange was established after new legislation opened up the market to new competitors to the JSE.
- Woolworths will no longer have a CEO for its SA operations after the current person in the role, Zyda Rylands, is stepping down after leading the division for six years. The retailer announced on Monday morning that Rylands was leaving her role as Woolworth SA (WSA) CEO and as executive director of Woolworths "due to personal circumstances". "The group has reviewed its leadership structure for WSA and will not retain the role as it seeks to streamline its operating model," it said. The retailer said that Rylands agreed to defer her planned early retirement to remain with the group until 2024.