Authorisations and Approvals_D

Question 1

In what circumstances may the JSE provisionally or finally terminate the membership of a member?

Answer 1

1. The provisional or final liquidation of a member or placed under business rescue proceedings.
2. The placement of the member under judicial management.
3. A disciplinary tribunal termination.
4. The default of a member.
5. A member fails to meet its membership requirements.
6. A member fails to make payment of any fees, levies, charges, penalties or subscriptions.

Question 2

What is the purpose of provisional termination of membership?

Answer 2

The postponement of the effective date of termination of membership to ensure that :
1. All obligations to clients have been met and ;
2. All transactions have been settled.

Question 3

What information must be furnished to the JSE in writing by a member in respect of its membership status?

Answer 3

1. Any change of name, address of any office, telephone, facsimile number, or email address.
2. Granting of an application for, or revocation of, any registration, authorisation or licence associated with its
   business as a member of the JSE.
3. Any circumstances relating to the liquidation or placement under judicial management of the member.
4. The prosecution or conviction of the member for any offence under legislation relating to banking, other
   financial services, companies, insolvency, insurance and pension and provident societies or any offence involving
   fraud or dishonesty.
5. Any change in the appointment of a compliance officer, a settlement officer or an alternate settlement officer.
6. Any person becoming or ceasing to be a director of a member.
7. Any change in the appointment of a person in control of a place of business.
8. Any change in the name of a nominee company.
9. Any event or circumstance which may affect an officer or a shareholder (who directly or indirectly holds 10% of
   the issued shares) meeting the fit and proper requirements.
10. The dismissal of an employee for committing or attempting to commit an act which is dishonest or fraudulent
11. Any person ceasing to be a registered securities trader of a member.

Question 4

Why must a member ensure that in its business relationships with other parties it does not facilitate such other
parties holding out or in any way representing that all or part of their activities are part of the business of the member
or subject to the rules, directives or regulation of the JSE?

Answer 4

The JSE provides specific safeguards and protections to clients of members.

Question 5

Whose written approval is required to carry on the business of a member either through the operation of an office or
in any association such as via a corporate body, partnership or joint venture with an overseas stockbroker or an
institution offering similar services?
1. Within the common monetary area;
2. Outside the common monetary area?

Answer 5

1. The JSE.
2. The JSE and the Exchange Control Department of the SA Reserve Bank.

Question 6

Whose prior consent is required to open or maintain a branch office or agency office?

Answer 6

The JSE

Question 7

Under what conditions could a member (host member) be permitted to enter into an arrangement to provide the full
spectrum of accounting and administrative functions on behalf of another member (the satellite member)?

Answer 7

1. Subject to the written approval of the JSE.
2. If, in the opinion of the Director: Market Regulation, the host member is adequately staffed and its
   administration is being conducted in an expert and orderly manner with all requisite controls in place.