Complaints and Disputes_C Flashcards
What are the only circumstances where the dispute resolution rules apply?
The dispute resolution rules only apply –
1. Where the amount in dispute is in excess of R2 000;
2. Where the dispute is not the subject of existing litigation;
3. In the case of a dispute that a client has with a member, where the amount in dispute either does not exceed
R500 000 or, where the amount in dispute exceeds R500 000, if the consent of both parties to proceed has been
obtained;
4. In the case of a dispute that a member has with another member, if the members are able to evidence to the
satisfaction of the Director: Market Regulation that reasonable endeavours have been made by the said
members to resolve the dispute, and the consent of both parties to proceed has been obtained;
5. In the case of a dispute that a member has with a client, if the consent of the client to proceed has been
obtained.
Within what period must a dispute between two members in respect of transactions in equity securities be reported
in writing to the Company Secretary and by whom?
The dispute must be reported by either member within 1 week of the circumstance giving rise to the dispute having
arisen.
Within what period must a dispute a member has with a client in respect of transactions in equity securities be
reported in writing to the Company Secretary and by whom?
The dispute must be reported by the member within 6 months of the circumstance giving rise to the dispute having
arisen.
Who will be appointed by the JSE to consider a dispute?
An ombud, who is a retired judge of the High Court of South Africa or a Senior Counsel.
Will the dispute resolution proceedings be conducted with legal representation?
No, unless the ombud in his sole discretion decides otherwise.
In reaching a decision, may an ombud consult with any third party regarding any issue relating to the dispute?
Yes.
Does an ombud have the discretion to call upon any third party to participate in the dispute resolution proceedings?
Yes.
Is an ombud’s decision regarding a dispute final and binding on the party against whom the decision is made?
Yes.
In what circumstances is an ombud not obliged to provide a ruling on a dispute?
If the ombud is of the view that the dispute is of such a complex nature that it cannot be resolved expeditiously by
means of the dispute resolution process and can only be properly considered by a court of law.
Within what period must the party against whom the decision is made comply with a decision made by an ombud?
1 week.
