Conduct of Business (Part XII) Flashcards
Are members knowingly permitted to transact business on behalf of a partner or member of the staff of the auditor of its firm if such staff or partner is involved with the audit of the member?
No.
If a member wishes to repledge listed securities which have been pledged by a client, what information do they need to obtain from the client?
The written consent of the client.
If a client has paid in full for securities which have been purchased but the securities have not yet been allocated to the client, is the member permitted to pledge those securities?
No.
If a client has delivered securities to the member which the client has sold, is the member permitted to pledge those securities prior to the settlement date of the sale?
No.
What is a member which pledges or retains in pledge any JSE authorised investments required to do on the day of such pledge?
A member which pledges or retains any JSE authorised investments shall1. Ensure that the quantities, certificate numbers (where applicable) and securities codes of all deposits and withdrawals of JSE authorised investments are recorded into the BDA system.
2. Ensure that all cash receipts from clients for banking on that day are processed.
3. Furnish the bank with a provisional computer report (PBNKBP) daily when JSE authorised investments are pledged detailing the investments pledged and whether or not such investments are available for pledge at that time.
What is a member which pledges or retains in pledge any JSE authorised investment required to do on each day such investments remain in pledge?
The member shall, at the commencement of business on the following business day, furnish the bank with the final computer report (PBNKPL) produced in the overnight run which will report updated values, and details of JSE authorised investments which should not have been pledged. The bank shall be provided with explanations for these items.
What must a member ensure with its bankers regarding the pledging of JSE authorised securities?
That the arrangements clearly specify that only items appearing on the final report (PBNKPL) as available for pledge will be legally enforceable as having been pledged
