Management and Control_A

Question 1

Define “employee”

Answer 1

An individual engaged by a member whose function relates to the provision of regulated services.

Question 2

Define “settlement officer”

Answer 2

An employee of a member appointed by that member in terms of the rules to manage the member’s obligations in
relation to the settlement of transactions in equity securities effected by that member.

Question 3

Define “alternate settlement officer”

Answer 3

An employee of either a member or a CSP appointed by such a member, fulfilling the function of the settlement
officer in the settlement officer’s absence.

Question 4

Define “compliance officer”

Answer 4

The person appointed by a member in terms of the rules to assist the board of directors of the member in ensuring
compliance by the member with the Act, the rules and the directives.

Question 5

Define “officer” in relation to a member.

Answer 5

Includes any executive director, compliance officer, settlement officer or alternate settlement officer thereof.

Question 6

An officer or non-executive director of a member or a shareholder who is a natural person and who directly or
indirectly holds in excess of 10% of the issued shares of a member must meet certain criteria, subject to waiver by the
JSE. What are they?

Answer 6

1. Be of full legal capacity.
2. Not be an unrehabilitated insolvent.
3. Comply with such criteria of good character and high business integrity as the JSE deems fit.

Question 7

What criteria will be taken into account by the JSE in determining whether a person who is required to meet the JSE’s
fit and proper requirements is of good character and high business integrity? (4.5) MARKS

Answer 7

The JSE will take into account whether the person has been :
1. Convicted of a criminal offence involving fraud or theft, dishonesty or market abuse.
2. Held civilly liable for fraud, theft, dishonesty or market abuse.
3. declared to have contravened legislation in respect of market abuse, money laundering or terrorist or related
activity, with or without the imposition of an administrative penalty, whether in the Republic or elsewhere.
4. Disqualified by a court from acting as a director of a company.
5. The subject of a formal investigation by any regulatory or government agency.
6. Expelled, whether as an authorised user or otherwise, from any exchange or external exchange.
7. Employed by or associated with an authorised user of any exchange or external exchange, which authorised user
was expelled from that exchange and where the person has, in the opinion of the JSE, contributed to the
circumstances leading to the expulsion.
8. Declared a defaulter on the JSE or any other exchange or external exchange.
9. Refused entry to or expelled from any profession or vocation or been dismissed or requested to resign from any
office or employment, or from any fiduciary office or similar position of trust.
10. Refused approval or had approval involuntarily withdrawn in respect of any status granted by a regulatory
authority.

Question 8

What results in immediate disqualification of a person’s fit and proper status?

Answer 8

1. Dishonesty or;
2. A deliberate omission in an application to the JSE.

Question 9

Members require the written consent of the JSE to employ certain persons. Who are they?

Answer 9

1. Any person who was an officer of a member expelled by the JSE.
2. Any person refused admission as a member of the South African Institute of Stockbrokers (SAIS) or any person
   expelled from membership of the SAIS.
3. Any person refused approval to operate as a financial services provider or an authorised representative in terms
   of the FAIS Act.
4. Any person expelled, whether as an authorised user or otherwise, from any other exchange.
5. Any person who is an unrehabilitated insolvent or has been declared a defaulter by the JSE or has been convicted
   of theft, fraud, forgery, or any other crime involving dishonesty.

Question 10

Which examination is a person to be appointed as a compliance officer required to have passed and what may the
member be required to evidence to the Director: Market Regulation if called upon to do so regarding the
continuing obligations of the appointee after they have passed the exam?

Answer 10

1. The compliance officer examination prescribed by the JSE.
2. That he has subsequently maintained an adequate knowledge of the Act, rules and directives.