Complaints and Disputes (Part II) Flashcards
(9 cards)
Within what period must a complaint be lodged with the Director: Market Regulation in order for an unresolved complaint to be considered by the JSE Market Regulation Division?
The complaint must be lodged within 4 weeks of the receipt by the complainant of the member’s response and within 6 months of the conduct by the member giving rise to the complaint.
Will an unresolved complaint that is lodged outside prescribed period be considered by the JSE Market Regulation Division?
Yes, provided that failure to lodge the complaint within the relevant period was through no fault of the client.
What action will be taken by the Director: Market Regulation if the If the JSE Market Regulation Division is unable to facilitate a resolution of the complaint within 4 weeks of lodgement of the complaint?
The Director: Market Regulation will refer the unresolved complaint to the Company Secretary of the JSE to be dealt with in terms of the dispute resolution rules.
What is the intention of the dispute resolution rules?
The dispute resolution rules are intended to facilitate the equitable and expeditious settlement of disputes that:
1. a client has with a member, in respect of an unresolved complaint;
2. a member has with another member, in respect of transactions in equity securities; or
3. a member has with a client, in respect of transactions in equity securities.
What are the only circumstances where the dispute resolution rules apply?
The dispute resolution rules only apply:
1. Where the amount in dispute is in excess of R2 000;
2. Where the dispute is not the subject of existing litigation;
3. In the case of a dispute that a client has with a member, where the amount in dispute either does not exceed R500 000 or, where the amount in dispute exceeds R500 000, if the consent of both parties to proceed has been obtained;
4. In the case of a dispute that a member has with another member, if the members are able to evidence to the satisfaction of the Director: Market Regulation that reasonable endeavours have been made by the said members to resolve the dispute, and the consent of both parties to proceed has been obtained;
5. In the case of a dispute that a member has with a client, if the consent of the client to proceed has been obtained.
Within what period must a dispute between two members in respect of transactions in equity securities be reported in writing to the Company Secretary and by whom?
The dispute must be reported by either member within 1 week of the circumstance giving rise to the dispute having arisen.
Within what period must a dispute a member has with a client in respect of transactions in equity securities be reported in writing to the Company Secretary and by whom?
The dispute must be reported by the member within 6 months of the circumstance giving rise to the dispute having arisen.
Who will be appointed by the JSE to consider a dispute?
An ombud, who is a retired judge of the High Court of South Africa or a Senior Counsel.
Will the dispute resolution proceedings be conducted with legal representation?
No, unless the ombud in his sole discretion decides otherwise.
