For the purpose of the obligation to establish and verify clients' identities as referred to in this guidance note, the term 'transaction" is not understood to include activities which happen automatically, or which an intermediary will perform automatically, without instructions from the client. These consequences include, for example, periodic contractual payments by clients to institutions and periodic automatic increases in such payments, as well as further business that accountable institutions may do with others in the course of giving effect to the clients' original mandate.
Examples of what might be regarded as "transactions" for the purposes of client identification in respect of the accountable institutions supervised by the Financial Services Board follow below. This is not an exhaustive fist of "transactions" performed by the relevant accountable institutions, but is intended to provide an indication of the types of activities which might be regarded as transactions.
| a) |
Collective investment Schemes |
| • |
The giving of a mandate to invest in any collective investment scheme; |
| • |
Any amendment in the original investment mandate of the client; |
| • |
An instruction to transfer or switch the investment to another collective investment scheme; |
| • |
The offering of participating interests far repurchase; |
| • |
The repayment of participants' interests following the closure of a fund or portfolio. |
| • |
The entering into a new long-term insurance policy; |
| • |
An amendment or variation of the terms and conditions of a long-term insurance policy, including a change in the beneficiary or policyholder; |
| • |
An instruction by the client to the long-term insurer to switch or reinvest the underlying assets of a linked policy with linked investment service providers or investment managers; |
| • |
Termination (including the lapsing and surrender), withdrawal, or reinvestment of a longterm insurance policy. |
The above activities apply both to the intermediary and service provider.
| • |
The entering into a new investment contract; |
| • |
Additional amounts invested in terms of an investment mandate with a client; |
| • |
An amendment or variation of the terns and conditions of an investment mandate; |
| • |
An instruction by the client to switch or reinvest the investment to other linked investment service providers or investment managers; |
| • |
An instruction by the client for a partial withdrawal of investment and the subsequent repayment of the investment in any form; |
| • |
Termination or withdrawal of an investment mandate and the subsequent repayment of the investments in any form. |
| d) |
Linked Investment Service Providers (LISP's) |
| • |
The entering into a new investment contract; |
| • |
Additional amounts invested in terms of an investment mandate with a client; |
| • |
An amendment or variation of the terms and conditions of an investment mandate; |
| • |
An instruction by the client to switch or reinvest the investment to other linked investment service providers or investment managers: |
| • |
Termination or withdrawal of an investment mandate and the subsequent repayment of the investments in any form; |
| • |
An instruction by the client for a partial withdrawal of investment and the subsequent repayment of the investment In any form. |
| e) |
Brokers trading securities (including derivatives) on the JSE Securities Exchange |
| • |
A trading instruction by a client to buy or sell securities or derivatives; |
| • |
An amendment or variation of a trading instruction from a client; |
| • |
The receipt from, or payment of money (including a dividend) to, a client in giving effect to a mandate. |
| f) |
Brokers trading financial instruments on the Bond Exchange of South Africa |
| • |
A trading instruction from a client to buy or sell a financial instrument; |
| • |
An amendment or variation of a trading instruction from a client; |
| • |
The receipt from or payment of money (including a coupon payment) to, a client in giving effect to a mandate. |
Older Persons Act, 2006
