Supervision and Enforcement

Question 1

Which activities or compliance issues may be investigated by the Director: Market Regulation and any other person
designated by him?

Answer 1

1. Any JSE related activities of any person who at the relevant time was a member or an employee of a member.
2. Whether a member or any of its employees complies with the Act, the rules and directives, and the Financial
   Intelligence Centre Act.
3. Whether a member is trading in such a manner that there is a danger that the member may not be able to meet
   its commitments to clients, other members or a settlement system.
4. Whether a member is conducting its business in a manner which could be detrimental to the JSE or its members.

Question 2

Which persons may be questioned by the Director: Market Regulation and any other person designated by him in
relation to an investigation by the JSE Market Regulation Division?

Answer 2

Any person who is subject to the jurisdiction of the JSE and who is believed to be able to furnish information on the
subject of the investigation or

to have in their possession or under their control any book, document, tape or
electronic record or other object which has a bearing on the subject of the investigation, to produce such book,
document, tape or

electronic record or other object or to appear at a time and place specified, to be questioned by
any of the abovementioned persons,

to furnish such information or to produce such book, document, tape, electronic
record or other object, provided that the subject of the investigation has first been put to such person.

Question 3

List 3 acts or practices which constitute improper conduct in terms of the rules.

Answer 3

1. Committing or attempting to commit any act which is dishonest or fraudulent.
2. Knowingly obstructing the business of the JSE or its members.
3. Failing to assist the JSE Market Regulation Division in the exercise of its duties.

Question 4

If on conclusion of an investigation, the Director: Market Regulation is of the opinion that there are grounds for an
allegation of improper conduct, which bodies may he refer the matter to and under what circumstances?

Answer 4

1. A Disciplinary Committee if the alleged conduct might warrant a penalty less serious than that which would
   require the matter to be referred to a disciplinary tribunal.
2. A Disciplinary Tribunal if the alleged conduct might warrant a fine in excess of R25 000 per contravention, or
   suspension or termination of membership or employment with a member.

Question 5

For what purpose may an Urgent Issues Committee be appointed?

Answer 5

To consider whether a member is -
1. Operating in such a manner that there is imminent danger that the member may be unable to meet its
commitments to clients, other members, a settlement system or another exchange.

2. Conducting business in a manner which could be detrimental to the interest of the JSE, its member or the public.

Question 6

What action may an Urgent Issues Committee take against a member?

Answer 6

1. Prohibit the member from trading.
2. Restrict the trading activities of the member.
3. Give the member such instructions as it deems necessary in the interests of the member’s clients or any
   settlement system or another exchange.