Management and Control_B Flashcards
What are the prescribed duties of a compliance officer?
- To assist the board of directors in ensuring compliance with the Act, rules and directives.
- With the necessary support and guidance from the board of directors of the member, implement the resources,
systems and procedures required to promote and monitor compliance by the member and its employees with
the Act, rules and directives. - Report to the Director: Market Regulation any breaches by the member of the Act, rules and directives or
any other issue considered by the compliance officer to be irregular. - Ensure that the content of the JSE Gazettes is communicated to and understood by all relevant employees.
Which examination is a person to be appointed as a settlement officer or alternate settlement officer required to have
passed and what may the member be required to evidence to the Settlement Authority if called upon to do so
regarding the continuing obligations of the appointee after they have passed the exam?
- The settlement officer examination prescribed by the JSE.
- That he has subsequently maintained an adequate knowledge of the JSE settlement rules.
Who must assume the responsibilities of the compliance officer in his absence or where the post has become vacant
and for what maximum period?
- A senior employee.
- For no longer than 2 months or such other period as the Director: Market Regulation may approve.
What are the duties of a settlement officer?
- To manage the equity securities settlement obligations of a member.
- Deal with all queries by the JSE in relation to settlement.
- Ensure that appropriate procedures are implemented and the necessary action is taken to facilitate the
settlement of all transactions in equity securities in accordance with the rules and directives. - Advise the JSE of any issue that may potentially impact on the settlement of a transaction.
- Cooperate with the Settlement Authority to ensure the efficient and timeous settlement of all transactions.
Can a member conduct its business in the absence of a duly appointed settlement officer or alternate settlement
officer?
No, except where the Settlement Authority may otherwise direct.
Which employees of a member may exercise discretion in the management of equity securities and those JSE
authorised investments not traded on a JSE market, or provide investment advice to clients on any transaction in such
securities, on behalf of a member?
- A stockbroker.
- A person who has been exempted from or passed the following registered persons examination of the South
African Institute of Financial Markets :
a. an introduction to the financial markets;
b. regulation and ethics of the South African financial markets; and
c. the equity market. - A person who has qualified as a Regular Member of the Chartered Financial Analyst Institute.
- A person who has obtained a pass in the Investment Advice and Portfolio Management module of the South
African Institute of Stockbrokers examinations and has been exempted from or obtained a pass in the Regulation
and Ethics of the South African Financial Markets module of SAIFM - A person who has been accustomed to giving investment advice on transactions since prior to 1 December 2000
and has continued to give investment advice since such date.
What is a person, other than a stockbroker, who ceases to manage investments or ceases to provide investment
advice for more than 3 years required to do if he wishes to recommence doing so?
Pass one of the examinations which qualify a person to manage investments or advise on transactions.
Which persons, who are resident in the area where the place of business is located, must be in control of the following
offices?
1. Primary place of business.
2. Branch office.
3. Agency office
- Stockbroker who must be an executive director of the member.
- Stockbroker in the full-time employ of the member.
- A stockbroker or an employee of a member who has obtained a pass in the compliance officer examination.
Which persons must be in control of the primary place of business and branch offices of a CSP which is not authorised
to provide trading services?
A stockbroker or a person who has obtained a pass in the compliance officer examination.
What must the system of internal control employed by a member ensure?
That :
1. The relevant business can be carried on in an orderly and efficient manner.
2. Financial and other information used or provided by the member is reliable.
3. All transactions and financial commitments entered into by the member are recorded and are within the scope
of authority of the member or the employee acting on behalf of the member.
4. There are procedures to safeguard the assets of the member and assets belonging to any other person for which
the member is accountable, and to control liabilities.
5. There are measures, so far as is reasonably practicable, to minimize the risk of loss to the member or the clients
of the member which results from any irregularity, fraud or error and to detect any irregularity, fraud or error
should they occur so that prompt remedial action may be taken by the member or the management of the
member.
What are the regulatory objectives in the establishment of risk management principles and procedures?
To ensure that the records of a member are maintained in such a manner as to promptly disclose financial and
business information that will enable the member or management of the member to:
1. Identify, quantify, control and manage the risk exposures of the member.
2. Make timely and informed business decisions.
3. Monitor the performance and all aspects of the business of the member.
4. Monitor the capital of the member to ensure compliance with the capital adequacy requirements imposed in
terms of the rules.
5. Monitor the quality of the member’s assets.
To whom must a member be able to describe and demonstrate the objectives and operation of its internal control and
risk management systems?
To the member’s auditor and to the JSE.
