[Section 6 heading substituted by section 290, item 7(a) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (1) |
[Section 6(1) deleted by section 290, item 7(b) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)] |
| (2) |
[Section 6(2) deleted by section 290, item 7(b) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)] |
| (3) |
In performing its functions in terms of this Act, the Authority— |
[Words preceding section 6(3) substituted by section 290, item 7(c) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (a) |
must act in a manner which— |
| (i) |
is compatible with the objects of this Act; |
| (ii) |
is most appropriate for meeting those objects; |
| (i) |
international supervisory standards; |
| (ii) |
the principle that a restriction which is placed on a regulated person, or on the rendering of securities services, should be proportionate to the purpose for which it is intended; |
| (iii) |
the desirability of facilitating innovation in securities services; |
| (iv) |
the international nature of regulated persons and securities services; |
| (v) |
the principle that competition between regulated persons should not be impeded or distorted; and |
| (vi) |
the need to use resources in the most effective and cost-efficient way; |
| (c) |
must take steps he or she considers necessary to protect investors in their dealings in relation to securities services or regulated persons; |
| (d) |
may require any person, including a regulated person, to furnish the Authority, within a specified period, with specified information or documents; |
| (e) |
may, despite the provisions of any law, furnish information acquired by him or her under this Act to any person charged with the performance of a function under any law, including a supervisory authority; |
| (f) |
must act in accordance with the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000); |
| (g) |
must take reasonable steps to verify any documentation, information or report given to the Authority by a licence applicant or regulated person, where such documentation, information or report, in the opinion of the Authority, is material to giving effect to the objects of this Act set out in section 2; |
| (h) |
may impose conditions that are consistent with this Act in respect of any licence, authorisation, approval, consent or permission granted by the Authority, and may amend or withdraw such conditions at any time; |
| (i) |
may determine the form, manner and period, if not specified in this Act, in which or within which any documentation, information or report that a regulated person is required to publish, disclose, provide or submit under this Act, must be published, disclosed, provided or submitted; |
| (j) |
may, on the written request of a regulated person, extend any period within which any documentation, information or report must be submitted to the Authority; |
| (k) |
may issue guidance notices on the application and interpretation of this Act; |
[Section 6(3)(k) substituted by section 290, item 7(d) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (l) |
may take any measures he or she considers necessary for the proper performance and exercise of his or her functions, or for the implementation of this Act; |
| (m) |
may exempt, for a specified period which may be renewed, any person or category of persons from the provisions of a section of this Act if the Authority is satisfied that— |
| (i) |
the granting of the exemption will not— |
| (aa) |
conflict with the public interest; or |
| (bb) |
frustrate the achievement of the objects of this Act; and |
| (ii) |
the application of the section will cause the applicant or clients of the applicant financial or other hardship or prejudice; and |
| (aa) |
is based in an equivalent jurisdiction in terms of section 6A and is authorised by the supervisory authority of such jurisdiction; |
| (bb) |
complies with any criteria prescribed in joint standards for the exemption of such persons; and |
| (cc) |
undertakes to cooperate and share information with the Authority, the South African Reserve Bank and the Prudential Authority to assist with the performance of functions and the exercise of powers in terms of financial sector law; |
[Section 6(3)(m) substituted by section 290, item 7(e) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (n) |
must inform the Minister and the Governor of any matter that in the opinion of the Authority may pose systemic risk; |
[Section 6(3)(n) substituted by section 290, item 7(f) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (o) |
[Section 6(3)(o) deleted by section 290, item 7(g) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]. |
(4)
| (a) |
The Authority may, in order to ensure the implementation and administration of this Act, compliance with this Act or achieving of the objects of this Act, issue a directive to any person, including a regulated person— |
| (i) |
to implement specific practices, procedures or processes; |
| (ii) |
to take specific actions or measures; |
| (iii) |
to desist from undertaking specific practices, procedures, processes, actions or measures; or |
| (iv) |
prohibiting certain practices, procedures, processes, actions or measures. |
| (b) |
A directive referred to in paragraph (a) may— |
| (i) |
apply to any person, regulated person or securities services generally; |
| (ii) |
apply to a specific person, regulated person or securities service; or |
| (iii) |
be limited in its application to a particular kind or type of person, regulated person or securities service. |
| (c) |
A directive issued in terms of paragraph (a) takes effect on the date determined by the Authority in the directive, and may take effect immediately. |
| (d) |
The Authority may cancel or revoke any previously issued directives. |
| (5) |
The Authority must, where an exemption or a directive applies to all persons, regulated persons or securities services generally, publish the directive in the Gazette and on the Authority's website, and a copy of the published exemption or directive must be tabled in Parliament. |
[Section 6(5) substituted by section 290, item 7(h) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (6) |
[Section 6(6) deleted by section 258 of Act No. 45 of 2013]. |
[Words preceding section 6(7)(a) substituted by section 290, item 7(i) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (a) |
prescribe criteria for the authorisation of persons providing securities services in respect of unlisted securities; |
| (b) |
prescribe conditions and requirements for the provision of securities services in respect of unlisted securities, including, but not limited to, imposing reporting requirements; |
[Section 6(7)(b) substituted by section 290, item 7(j) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (c) |
prescribe standards in accordance with which securities services in respect of unlisted securities must be carried on; |
| (d) |
prescribe conditions and requirements in terms of which securities services in respect of specified types of unlisted securities may be provided, including the manner in which clearing and settlement of such securities must take place; |
[Section 6(7)(d) substituted by section 290, item 7(k) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (e) |
prescribe criteria for the authorisation of issuers of unlisted securities; and |
| (f) |
prohibit a person from providing any securities services in respect of unlisted securities if that person provides securities services in a manner which defeats one or more of the objects of this Act referred to in section 2. |
| (8) |
In relation to the persons in the category prescribed in terms of section 5(1)(b), standards may— |
[Words preceding section 6(8)(a) substituted by section 290, item 7(l) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (a) |
prescribe criteria for the authorisation of such persons; |
| (b) |
prescribe conditions and requirements for the provision of securities services by such persons, including prescribing conduct standards and imposing reporting requirements; |
[Section 6(8)(b) substituted by section 290, item 7(m) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (c) |
prescribe standards in accordance with which securities services by such persons must be carried on; and |
| (d) |
prohibit such persons from providing securities services or undertaking any activities which may frustrate the objects of this Act or the Financial Sector Regulation Act. |
[Section 6(8)(d) substituted by section 290, item 7(n) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
| (9) |
In relation to the securities services that may be provided, or the functions and duties that may be exercised by an external authorised user, external exchange, external participant, external central securities depository, external clearing house, external central counterparty, external clearing member or external trade repository, as the case may be, joint standards may prescribe additional criteria for the approval, authorisation, licensing or exemption of those persons in the Republic, and for the equivalence recognition of the applicable foreign country. |
[Section 6(9) inserted by section 290, item 7(o) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]
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