Securities Services Act, 2004 (Act No. 36 of 2004) Chapter I : Preliminary Provisions 1. Definitions

 

In this Act, unless the context indicates otherwise—

 

"advice"

means any recommendation, guidance or proposal of a financial naturefurnished, by any means or medium, to a client or group of clients in respect of the buying and selling of listed securities and irrespective of whether or not such advice results in any such transaction being effected, but does not include—

 

"advisory board"

means the Financial Markets Advisory Board referred to in section 6;

 

"auditor"

means an auditor registered in terms of the Public Accountants’ and Auditors’ Act, 1991 (Act No. 80 of 1991);

 

"authorised user"

means a person authorised by an exchange in terms of the, exchange rules to perform such securities services as the exchange rules may permit;

 

"bank"

means a bank as defined in the Banks Act, 1990 (Act No. 94 of 1990), and a mutual bank as defined in the Mutual Banks Act, 1993 (Act No. 124 of 1993);

 

"board"

means the Financial Services Board established by section 2 of the Financial Services Board Act, 1990 (Act No. 97 of 1990);

 

"board of appeal"

means the board of appeal established by section 26 of the Financial Services Board Act, 1990 (Act No. 97 of 1990);

 

"central securities depository"

means a person who is licensed as a central securities depository under section 32;

 

"clear"

in relation to a transaction or group of transactions in listed securities, means—

to enable settlement of a transaction or group of transactions; or

 

"clearing house"

means a person licensed in terms of section 66 as a clearing house and appointed by an exchange to provide clearing house services to such exchange;

 

"clearing house services"

means either clearing services or settlement services or both clearing and settlement services provided to an exchange by a clearing house;

 

"client"

means any person who uses the services of an authorised user or a participant, as the case may be;

 

"Companies Act"

means the Companies Act, 1973 (Act No. 61 of 1973);

 

"depository rules"

means the rules made by a central securities depository in accordance with this Act; "derivative instrument" means any-

that creates rights and obligations and that derives its value from the price or value, or the value of which may vary depending on a change in the price or value, of some other particular product or thing;

 

"directive"

means a directive issued by a self-regulatory organisation in accordance with its rules;

 

"directorate"

means the Directorate of Market Abuse referred to in section 83;

 

"electronic"

includes created, recorded, transmitted or stored in digital or other intangible but visible form by electronic, magnetic, optical or any similar means;

 

"enforcement committee"

means the enforcement committee established in terms of section 97;

 

"exchange"

means a person who constitutes, maintains and provides an infrastructure—

transferred by or on behalf of a seller;

 

"exchange rules"

means the rules made by an exchange in accordance with this Act;

 

"external exchange"

means a person authorised to function as an exchange in terms of the laws of a country other than the Republic;

 

"financial institution"

means—

 

"Financial Institutions (Protection of Funds) Act"

means the Financial Institutions (Protection of Funds) Act, 2001 (Act No. 28 of 2001);

 

"Financial Services Board Act"

means the Financial Services Board Act, 1990 (Act No. 97 of 1990);

 

"foreign collective investment scheme"

means a scheme, in whatever form, carried on in a country other than the Republic, in pursuance of which members of the public—

 

"index"

means an indicator that reflects changes in the value of a group of securities on one or more exchange or external exchange;

 

"Insider Trading Act"

means the Insider Trading Act, 1998 (Act No. 135 of 1998);

 

"in writing"

in relation to anything which, in terms of this Act must be done in writing, includes any such thing done in electronic form;

 

"issuer"

means an issuer of securities and, in Chapter IV, includes an issuer of money market instruments;

 

"listed securities"

means securities included in the list of securities kept by an exchange in terms of section 12;

 

"management of securities"

means—

 

"Minister"

means the Minister of Finance;

 

"nominee"

means a person that acts as the registered holder of securities or an interest in securities on behalf of other persons;

 

"participant"

means a person that holds in custody and administers securities or an interest in securities and that has been accepted in terms of section 34 by a central securities depository as a participant in that central securities depository;

 

"prescribed by the Minister"

means prescribed by the Minister by regulation;

 

"prescribed by the registrar"

means prescribed by the registrar by notice in the Gazette;

 

"Public Accountants’ and Auditors’ Act"

means the Public Accountants’ and Auditors’ Act, 1991 (Act No. 80 of 1991);

 

"registrar"

means the Registrar or Deputy Registrar of Securities Services referred to in section 5;

 

"regulated person"

means a self-regulatory organisation or any other person who provides or who previously provided securities services;

 

"regulation"

means a regulation made under section 113;

 

"securities"

 

"securities services"

means services provided in terms of this Act in respect of—

 

"self-regulatory organisation"

means an exchange or a central securities depository;

 

"settle"

means to discharge the obligations arising from a transaction in listed securities;

 

"settling party"

means a buyer or seller of listed securities who settles a transaction or any person appointed in terms of exchange rules by such buyer or seller to settle a transaction on behalf of such buyer or seller;

 

"stockbroker"

means a natural person who is a member of the South African Institute of Stockbrokers;

 

"systemic risk"

means the danger of a failure or disruption of the Republic’s financial system as a whole;

 

"this Act"

includes any measure prescribed by the Minister or by the registrar;

 

"transaction"

means a contract of purchase and sale of securities.