Management and Control (Part II)

Question 1

What results in immediate disqualification of a person’s fit and proper status?

Answer 1

1. Dishonesty or;
2. A deliberate omission in an application to the JSE.

Question 2

Members require the written consent of the JSE to employ certain persons. Who are they?

Answer 2

1. Any person who was an officer of a member expelled by the JSE.
2. Any person refused admission as a member of the South African Institute of Stockbrokers (SAIS) or any person expelled from membership of the SAIS.
3. Any person refused approval to operate as a financial services provider or an authorised representative in terms of the FAIS Act.
4. Any person expelled, whether as an authorised user or otherwise, from any other exchange.
5. Any person who is an unrehabilitated insolvent or has been declared a defaulter by the JSE or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.

Question 3

Which examination is a person to be appointed as a compliance officer required to have passed and what may the member be required to evidence to the Director: Market Regulation if called upon to do so regarding the continuing obligations of the appointee after they have passed the exam?

Answer 3

1. The compliance officer examination prescribed by the JSE.
2. That he has subsequently maintained an adequate knowledge of the Act, rules and directives.

Question 4

What are the prescribed duties of a compliance officer?

Answer 4

1. To assist the board of directors in ensuring compliance with the Act, rules and directives.
2. With the necessary support and guidance from the board of directors of the member, implement the resources, systems and procedures required to promote and monitor compliance by the member and its employees with the Act, rules and directives.
3. Report to the Director: Market Regulation any breaches by the member of the Act, rules and directives or any other issue considered by the compliance officer to be irregular.
4. Ensure that the content of the JSE Gazettes is communicated to and understood by all relevant employees.

Question 5

Who must assume the responsibilities of the compliance officer in his absence or where the post has become vacant and for what maximum period?

Answer 5

1. A senior employee.
2. For no longer than 2 months or such other period as the Director: Market Regulation may approve.

Question 6

Which examination is a person to be appointed as a settlement officer or alternate settlement officer required to have passed and what may the member be required to evidence to the Settlement Authority if called upon to do so regarding the continuing obligations of the appointee after they have passed the exam?

Answer 6

1. The settlement officer examination prescribed by the JSE.
2. That he has subsequently maintained an adequate knowledge of the JSE settlement rules.

Question 7

What are the duties of a settlement officer?

Answer 7

1. To manage the equity securities settlement obligations of a member.
2. Deal with all queries by the JSE in relation to settlement.
3. Ensure that appropriate procedures are implemented, and the necessary action is taken to facilitate the settlement of all transactions in equity securities in accordance with the rules and directives.
4. Advise the JSE of any issue that may potentially impact on the settlement of a transaction.
5. Cooperate with the Settlement Authority to ensure the efficient and timeous settlement of all transactions.