Conduct of Business (Part III) Flashcards
What are the general standards of conduct which a member is required to observe regarding co-operation with the JSE as its regulator?
- Deal with the JSE in an open and co-operative manner; and
- Keep the JSE promptly informed of anything concerning the JSE which might reasonably be expected to be disclosed to it.
What are the general principles that a member must adhere to in advertising its services to the public?
The advertising must:
1. Be carried out with a due sense of responsibility to the public and the profession.
2. Be consistent with the dignity of the profession.
3. Be in good taste without odious comparisons claiming superiority.
4. Conform to accepted norms of legality, decency, honesty and truthfulness.
5. Not contain testimonials or endorsements.
What is the specific principle that a member must adhere to regarding advertising material about any JSE authorised investment or any regulated service rendered by the member.
The advertising material must provide accurate, complete and unambiguous information about the JSE authorised investment or required service.
If an advertisement contains information about past performances, what type of statement must also be included in the advertisement?
A warning that past performances are not necessarily indicative of future performances.
What designation must a member use in publicity, promotional or advertising material or on its professional stationery or on its name plates or on its office premises?
- Only the designation (name or logo) recognised by the JSE. AND
- That the member is “a member” of the JSE.
What statement must accompany any written publication or circulation issued by a member relating to the trading results of a listed company or which may influence the price of the securities?
The name of the person or persons who compiled it.
If a member issues a newsletter, circular or other publication which contains an opinion on a listed company and the member has an interest in that company, what disclosure must be included in the publication?
The existence of the interest.
Can a member enter into a transaction with or on behalf of a client where the transaction is as a result of an unsolicited call?
Yes, provided :
1. the general standards of conduct relating to disclosure to clients are complied with and;
2. the rules relating to advice on JSE authorised investments are complied with.
