| (1) |
Subject to subsection (2), an applicant for an exchange licence and a licensed exchange must— |
| (a) |
subject to the requirements prescribed by the Minister have assets and resources in the Republic, which resources include financial, management and human resources with appropriate experience, to perform its functions as set out in this Act; |
| (b) |
have governance arrangements that are clear and transparent, promote the safety and efficiency of the exchange, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders; |
| (c) |
demonstrate that the fit and proper requirements prescribed in relevant joint standards are met by the applicant, or the licensed exchange, as the case may be, members of its controlling body and senior management; |
[Section 8(1)(c) substituted by section 290, item 10(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)]
| (d) |
have made arrangements for the efficient and effective surveillance of all transactions effected through the exchange and for the supervision of authorised users so as to identify possible market abuse and ensure compliance with the exchange rules and exchange directives and this Act; |
| (e) |
have made arrangements for the efficient and effective monitoring of compliance by issuers of securities listed on the exchange with the exchange’s listing requirements; |
| (f) |
implement arrangements to efficiently and effectively manage the material risks associated with the operation of an exchange; |
| (g) |
have made arrangements for efficient and effective security and back-up procedures to ensure the integrity of the records of transactions effected through the exchange; |
| (h) |
have insurance, a guarantee, compensation fund or other warranty in place to enable it to provide compensation, subject to the exchange rules, to clients; |
| (i) |
make arrangements for the efficient and effective clearing and settlement of transactions effected through the exchange and for the management of settlement risk; |
| (j) |
have made arrangements for the efficient and effective supervision of authorised users so as to ensure compliance with the Financial Intelligence Centre Act; and |
| (k) |
implement an effective and reliable infrastructure to facilitate the trading of securities listed on the exchange. |
| (a) |
require an applicant or a licensed exchange to furnish such information, or require such information to be verified, as the Authority may deem necessary to determine whether the applicant or the exchange meets the requirements of subsection (1); |
| (b) |
take into consideration any other information regarding the applicant or the exchange, derived from whatever source, including any other supervisory authority, if such information is disclosed to the applicant or the exchange, as the case may be, and the latter is given a reasonable opportunity to respond thereto; and |
| (c) |
prescribe any of the requirements referred to in subsection (1) in greater detail. |
(3)
| (a) |
Despite subsection (1), requirements prescribed under this section that are in force immediately before the commencement of this subsection continue to be in force. |
| (b) |
In respect of regulations prescribed in terms of subsection (1)(a), the Minister may repeal regulations, and new requirements may then be prescribed in joint standards or conduct standards. |
| (c) |
Paragraph (b) does not affect or limit the power of the Minister to prescribe or amend regulations in terms of subsection (1)(a). |
| (d) |
Requirements prescribed in terms of subsection (1)(c) or (2)(c) before the commencement of this subsection may be amended or repealed by conduct standards or joint standards. |
[Section 8(3) inserted by section 290, item 10(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)]
Statistics Act, 1999
