FMA definitions 2

Question 1

‘‘clearing services’’

Answer 1

services offered and activities performed by a clearing member to facilitate clearing of transactions in securities

Question 2

‘‘client’’

Answer 2

any person to whom a regulated person provides securities services and includes a person that acts as an agent for another person in relation to those services in which case it will include the agent or exclude the other person if the contractual arrangement between the parties indicates this to be the intention

Question 3

‘‘Companies Act’’

Answer 3

the Companies Act, 2008 (Act No. 71 of 2008);

Question 4

‘‘derivative instrument’’

Answer 4

any—
(a) financial instrument; or
(b) contract,
that creates rights and obligations and whose value depends on or is derived from the value of one or more underlying asset, rate or index, on a measure of economic value or on a default event;

Question 5

‘‘directive’’

Answer 5

a directive issued by the registrar in terms of section 6(4);

Question 6

‘‘directorate’’

Answer 6

Directorate of Market Abuse referred to in section 85

Question 7

‘‘document’’

Answer 7

a book, record, security or account, and any information stored or recorded electronically, photographically, magnetically, mechanically, electro-mechanically or optically or in any other form

Question 8

‘‘electronic’’

Answer 8

created, recorded, transmitted or stored in digital or other intangible but visible form by electronic, magnetic, optical or any similar means

Question 9

‘‘exchange’’

Answer 9

a person who constitutes, maintains and provides an infrastructure:
(a) for bringing together buyers and sellers of securities;
(b) for matching bids and offers for securities and
(c) whereby a matched bid and offer for securities constitutes a transaction;

Question 10

‘‘exchange directive’’

Answer 10

a directive issued by a licensed exchange in accordance with its rules

Question 11

‘‘exchange rules’’

Answer 11

rules made by a licensed exchange in accordance with this Act;

Question 12

‘‘transaction’’

Answer 12

a contract of purchase and sale of securities;

Question 13

“Tribunal”

Answer 13

the Financial Services Tribunal established in terms of section 219 of the Financial Sector Regulation Act

Question 14

‘‘this Act’’

Answer 14

the regulations, rules, and any notices or directives issued, exemption granted, determinations made, requirements determined or conditions imposed by the registrar, that have general application;

Question 15

‘‘systemic risk’’

Answer 15

the danger of a failure or disruption of the whole or a significant or substantial part of the Republic’s financial system