Authorisations and Approvals_A Flashcards
Define “agency office”
An office which does not undertake any of the functions of a branch office but which can undertake scrip and cash
settlements.
Define “branch office”
An office of a member, other than its primary or head office, which can perform trading services and investment
services.
Define “JSE listed securities”
Those listed securities included in the list of securities kept by the JSE.
Define “member”
An equities member, which is a category of authorised user admitted to membership of the JSE under the rules.
Define “non-executive director” of a member.
A person appointed as a director of the member under the Companies Act who is not employed by such member.
Define “nominee register”
The electronic record of ownership of uncertificated equity securities balances of controlled accounts maintained by a
CSP.
Define “regulated services”
Those securities services and other activities which are regulated by the JSE and which the JSE authorises members to
perform, namely :
1. trading services;
2. investment services;
3. custody services; and
4. money broking.
Define “trading services”
The execution of transactions in equity securities by a member :
1. for the member’s own account; and
2. with or on behalf of a client.
Define “trading services provider”
A member which has been authorised by the JSE to perform trading services in terms of the rules.
What regulated services are authorised by the JSE?
Trading services, custody services and investment services.
What regulated service must an applicant have applied for authorisation to perform in order to apply for authorization
to perform investment services?
Trading services.
What are the requirements to be admitted as a member and to remain a member?
Must :
1. Be incorporated and registered as a domestic company under the companies Act;
2. Only appoint executive and non-executive directors who comply with the fit and proper requirements;
3. Ensure that a shareholder who is a natural person and who directly or indirectly holds in excess of 10% of the
issued shares of the applicant or member complies with the fit and proper requirements;
4. Appoint a compliance officer who complies with the fit and proper requirements;
5. Appoint a settlement officer and an alternate settlement officer who comply with the fit and proper
requirements;
6. Appoint a CSDP, unless it only performs, or intends to perform, custody services and it does not require a CSDP in
order to perform such services; and
7. Meet the specific conditions of membership relating to :
a. resources procedures and systems;
b. business activities and;
c. financial resources.
