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Securities Services Act, 2004 (Act No. 36 of 2004)

Code of Conduct for Authorised Users

1. Definitions, construction and application

 

(1) In this Code "the Act" means the Securities Services Act, 2004 (Act No. 36 of 2004), and a word or expression to which a meaning has been assigned in the Act bears that meaning, and, unless the context indicates otherwise—

 

"advertisement"

in relation to an authorised user, means any written, printed, electronic or oral communication, including a communication by means of a public radio service, television broadcast or any other media effected by an authorised user, which communication is directed to the general public, or any section thereof, or to any client, and is intended to call attention to, or to market or promote, the securities services offered by an authorised user, and which does not purport to provide detailed information about such services; and "advertising" has a corresponding meaning;

 

"internal controls"

means those internal controls established in order to provide reasonable assurance of—

(a) the safeguarding of assets against unauthorised use or disposition; and
(b) the maintenance of proper accounting records and the reliability of financial information used within the business or for publication;

 

"professional client"

in relation to an authorised user, means—

(a) another authorised user;
(b) a bank;
(c) a long-term or short-term insurer registered as such under the Long-term Insurance Act, 1998 (Act No. 52 of 1998) or the Short-term Insurance Act, 1998 (Act No. 53 of 1998), respectively;
(d) a person outside the Republic who—
(i) as a regular feature of the person’s business, renders a service similar to a "securities service’’ as defined in section 1 of the Act or conducts the business of a bank or a business referred to in paragraph (c); and
(ii) is registered, licensed, recognised, approved or otherwise authorised to render the service or conduct the business referred to in paragraph (d)(i) by a foreign regulator with functions similar to those of the Registrar of Securities Services, the Registrar of Banks or the Registrar of Long-Term or Short-Term Insurance;
(e) any person who is mandated to manage assets and who has confirmed to the satisfaction of the authorised user that the market value of the assets managed by the person will exceed R1 billion at all times during the rendering of securities services to the person;
(f) any other person included in the definition of "client" in section 1 of the Act, who has confirmed to the satisfaction of the authorised user that the person will have assets of which the net asset value will exceed R20 million at all times during the rendering of securities services to the person, but who is not—
(i) a natural person;
(ii) a pension fund organisation as defined in section 1 (1) of the Pension Funds Act, 1956 (Act No. 24 of 1956);
(iii) a friendly society referred to in the Friendly Societies Act, 1956 (Act No. 25 of 1956);
(iv) a medical scheme as defined in section 1 (1) of the Medical Schemes Act, 1998 (Act No.131 of 1998).

 

(2) This Code is supplementary to the Act and exchange rules and must be construed in conjunction with the Act and such rules.

 

(3) This Code is binding on authorised users, their officers and employees and clients. For the purposes of this Code a reference to an authorised user includes a reference to an officer and employee of an authorised user.