Membership & Disciplinary Procedures Flashcards
(10 cards)
Officers of members shall, subject to any waiver by the JSE
- be of full legal capacity
- comply with such criteria of good character and high business integrity
- not be an unrehabilitated insolvent
Members who are corporate entities shall–
not employ, register or permit association with an officer who does not fulfil the requirements of rule 3.20.1 without the prior approval of the JSE
- have, in the opinion of the JSE, a good reputation and high business standing
Members shall at all times have and maintain the necessary procedures, administrative and other
systems, facilities, resources and expertise to ensure
- the effective performance of the regulated services
- compliance with the Act and the rules and directives
- compliance with the Financial Intelligence Centre Act
- the management of their own and clients’ funds is adequate and in accordance with the derivatives rules relating to the management or separation of funds
- an accurate record of their own and clients’ positions is kept at all times
- their clients’ trades, cash balances and any other information relating to their positions are timeously reported to the clients
- they comply with all the financial resources requirements pertaining to the relevant
category of authorised user as prescribed in the derivatives rules
The applicant shall include with its application, the following information:
- the applications for registration as registered officers of the applicant;
- the most recent financial statements of the applicant as well as a completed capital adequacy return
- the details of the applicant’s auditor
- a completed clearing agreement, in the case of a trading member
- a completed clearing house agreement, in the case of a clearing member.
Applications for membership
- An application for membership shall be made to the JSE in the manner and in the form prescribed by the JSE.
- The application shall indicate the category or categories of membership they wish to apply.
provisions shall apply to applicant members who are partnerships
- a signed copy of the deed of partnership
- JSE shall not grant its consent for the admission of a partnership unless it is satisfied that all the partners are jointly and severally liable for the debts and obligations of the partnership
provisions that apply to applicant members who are close corporations or corporate entities
- shall include a signed copy of the founding
statement or the memorandum and articles of association - a copy of any agreement entered into or proposed to be entered into between the members of the entity relative to
the members’ interest or shares thereof. - The provisions of this rule shall apply mutatis mutandis to the amendment or substitution of the
aforementioned document.
Procedure for application approval/rejection:
- The Membership Committee shall have the sole discretion to accept or reject the application
- Or to accept an application subject to certain conditions to be fulfilled as determined by the JSE from time to time: Provided that
the JSE shall reach a decision within 60 (sixty) days of the first meeting at which the application was considered. - The JSE shall notify the applicant in writing of the decision of the Membership Committee and of any conditions that are required to be fulfilled.
3.5. Any person aggrieved by the decision of the JSE to reject an application, shall have a right of appeal to the board of appeal in terms of the Act. - If an application for membership has been refused, and the applicant did not exercise his right of appeal or if the
appeal is unsuccessful, they shall not be entitled to re-apply for membership for a period of 1 (one) year from the date of refusal. - The JSE shall notify members of the admission of a new member.
Don’t employ these people without THE WRITTEN CONSENT OF THE JSE
- any sole proprietor, partner, officer or employee of a member expelled from the JSE.
- any such sole proprietor, or partner whose membership has been terminated by the JSE.
- any person refused approval to operate as a financial services provider in terms of the FAIS Act or any other act
- any person expelled, whether as an authorised user or otherwise, from any other exchange
- any person who is an unrehabilitated insolvent or has been a defaulter or has been convicted of theft, fraud, forgery, or any other crime involving dishonesty.
BUT consent of the JSE may be given for a limited period and may be withdrawn at any time Provided the JSE gives the member one calendar month’s notice.
Trading name?
If the JSE in its sole discretion deem the name under which the member proposes to operate, to be inappropriate or unacceptable for any reason the JSE is entitled to refuse any member approval of membership
