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South Africa
NATIONAL LEGISLATION OVERVIEWS
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Financial Markets Act, No. 19 of 2012

Long title


To provide for the regulation of financial markets; to license and regulate exchanges, central securities depositories, clearing houses [ , central counterparties ] and trade repositories; to regulate and control securities trading, clearing and settlement, and the custody and administration of securities; to prohibit insider trading, and other market abuses; to provide for the approval of nominees; to provide for [ conduct standards ] ; to replace the Securities Services Act, 2004, as amended by the Financial Services Laws General Amendment Act, 2008, so as to align this Act with international standards; and to provide for matters connected therewith.

[...amended by Act 2017_009_290_20170822 Sch4 Item78]

Table of contents


SECTION TITLE

ARRANGEMENT OF SECTIONS

CHAPTER I. PRELIMINARY PROVISIONS 
1. Definitions and interpretation
1A. Relationship between Act and Financial Sector Regulation Act [...inserted by Act 2017_009_290_20170822 Sch4 Item3]
2. Objects of Act
3. Application of Act and rules
4. Prohibitions and adherence to authorisation by authorised users, participants and clearing members

CHAPTER II. REGULATION AND SUPERVISION OF FINANCIAL MARKETS
5. Powers of the Minister
6. Authority [ of Security Services ] [...Title amended by Act 2017_009_290_20170822 Sch4 - was entitled "Registrar and Deputy Registrar of Securities Services"]
6A. Equivalence recognition of foreign jurisdictions [...inserted by Act 2017_009_290_20170822 Sch4 Item8]
6B. Withdrawal of recognition [...inserted by Act 2017_009_290_20170822 Sch4 Item8]
6C. Principles of co-operation [...inserted by Act 2017_009_290_20170822 Sch4 Item8]

CHAPTER III. EXCHANGES

Licensing of exchange
7. Application for exchange licence
8. Requirements applicable to applicant for exchange licence and licensed exchange
9. Licensing of exchange

Functions of licensed exchange
10. Functions of licensed exchange and power of Authority to assume responsibility for functions [ ...Title amended by Act 2017_009_290_20170822 Sch4 Item79 - was entitled "Functions of licensed exchange and power of registrar to assume responsibility for functions"]
11. Listing of securities
12. Removal of listing and suspension of trading
13. Application of amended listing requirements to previously listed securities
14. Disclosure of information by issuers of listed securities
15. Maintenance of insurance, guarantee, compensation fund or other warranty
16. Funds of mutual exchange
17.
Requirements with which exchange rules must comply

Authorised users
18. Restriction on borrowing against and repledging of securities belonging to other persons
19. Marking of or recording details of securities
20.  Restriction on alienation of securities
21. Segregation of funds
22. Segregation of securities

General provisions in relation to listed securities
23. Use of designation "stockbroker" and related designations
24. Buying and selling listed securities
25. Reporting of transactions in listed securities

CHAPTER IV. CUSTODY AND ADMINISTRATION OF SECURITIES
26. Definition
27. Application for central securities depository licence
28. Requirements applicable to applicant for central securities depository licence and licensed central securities depository
29. Licensing of central securities depository

Functions of licensed central securities depository
30. Functions of licensed central securities depository and power of registrar to assume responsibility for functions

Participant
31. Authorisation of participant

Duties of participant
32. Duties of participant

Uncertificated securities
33. Uncertificated securities
34. Duties of issuer of uncertificated securities

Depository rules
35. Requirements with which depository rules must comply

General provisions relating to custody and administration of securities
36. Registration of securities
37. Ownership of securities
38. Transfer of uncertificated securities or interest in uncertificated securities
39. Pledge or cession of uncertificated securities in securitatem debiti
40. Ranking of interests in securities
41. Acquisition by bona fide transferee
42. Withdrawal and delivery of securities
43. Records
44. Warranty and indemnity
45. Attachment
46. Effectiveness in insolvency

CHAPTER V. CLEARING HOUSE 

Licensing of clearing house and central counterparty [...Title amended by Act 2017_009_290_20170822 Sch4 Item26 - was entitled "Licensing of clearing house"]
47. Application for clearing house licence and central counterparty licence [...Title amended by Act 2017_009_290_20170822 Sch4 Item26 - was entitled "Application for clearing house licence"]
48. Requirements applicable to applicant for clearing house licence, central counterparty licence,  licensed clearing house and licensed central counterparty [...Title amended by Act 2017_009_290_20170822 Sch4 Item27(a) - was entitled "Requirements applicable to applicant for clearing house licence and licensed clearing house"]
49. Licensing of clearing house and central counterparty [...Title amended by Act 2017_009_290_20170822 Sch4 - was entitled "Licensing of clearing house"]
49A. Licensing of external counterparty [...inserted by Act 2017_009_290_20170822 Sch4 Item29]

Functions of licensed clearing house and licensed central counterparty [...Title amended by Act 2017_009_290_20170822 Sch4 Item30 - was entitled "Functions of licensed clearing house"]
50. Functions of licensed clearing house and licensed central counterparty, and power of registrar to assume responsibility for functions [...Title amended by Act 2017_009_290_20170822 Sch4 Item31(a) - was entitled "Functions of licensed clearing house and power of registrar to assume responsibility for functions"]
51. Maintenance of insurance, guarantee, compensation fund or other warranty
52. Funds of mutual independent clearing house or central counterparty [...Title amended by Act 2017_009_290_20170822 Sch4 Item33 - was entitled "Funds of mutual independent clearing house"]
53.
Requirements with which clearing house rules must comply

CHAPTER VI. TRADE REPOSITORIES
54. Application for trade repository licence
55. Requirements applicable to applicant for trade repository licence and licensed trade repository
56. Licensing of trade repository
56A. Licensing of external trade repository [...inserted by Act 2017_009_290_20170822 Sch4 Item38]
57. Duties of licensed trade repository
58. Reporting obligations

CHAPTER VII. GENERAL PROVISIONS APPLICABLE TO MARKET INFRASTRUCTURES
59. Annual assessment
60. Cancellation or suspension of licence
61. Carrying on of additional business
62. Conflicts of interest
63. Demutualisation of [ an ] exchange, central securities depository [ , ] [ , ]  independent clearing house or central counterparty [...Title amended by Act 2017_009_290_20170822 Sch4 Item45(a) - was entitled "Demutualisation of an exchange, central securities depository, or independent clearing house"]
64. Amalgamation, merger, transfer or disposal
65. Duty of members of controlling body
66. Appointment of members of controlling body
67. Limitation on control of and shareholding or other interest in market infrastructures
68. Delegation of functions
69. Report to Authority [...Title amended by Act 2017_009_290_20170822 Sch4 Item50 - was entitled "Report to registrar"]
70. Attendance of meetings by, and furnishing of documents to, registrar
71. Manner in which rules of certain market infrastructure may be made, amended or suspended, and penalties for contraventions of such rules
72. Limitation of liability
73. Disclosure of information

[ [ CODE OF CONDUCT ] ] CHAPTER VIII. [ CODE OF CONDUCT ] CONDUCT STANDARDS [...Title amended by Act 2017_009_290_20170822 Sch4 Item52 - was entitled "CHAPTER VIII. CODE OF CONDUCT"]
74. Conduct standards for regulated persons [...Title amended by Act 2017_009_290_20170822 Sch4 Item53(a)- was entitled "Code of conduct for regulated persons"]
75. Principles for conduct standards [...Title amended by Act 2017_009_290_20170822 Sch4 Item54(a) - was entitled "Principles of code of conduct"]

CHAPTER IX. PROVISIONS RELATING TO NOMINEES
76. Approval of nominee

CHAPTER X. MARKET ABUSE
77. Definitions

Offences
78. Insider trading
79. Publication
80. Prohibited trading practices
81. False, misleading or deceptive statements, promises and forecasts

Insider trading sanction
82. Liability resulting from insider trading

Procedural matters
83. Attachments and interdicts

Administration of Chapter
84. Additional powers of Authority [...Title amended by Act 2017_009_290_20170822 Sch4 - was entitled "Powers and duties of Financial Services Board"]
85. Composition and functions of directorate
86. ... [...repealed by Act 2017_009_290_20170822 Sch4 Item60 - was entitled "Financing of directorate"]

General provisions
87. Protection of existing rights
88. Confidentiality and sharing of information

CHAPTER XI. AUDITING
89. Auditor
90. Accounting records and audit
91. Functions of auditor
92. Furnishing of information in good faith by auditor
93. Power of Authority to request audit [...Title amended by Act 2017_009_290_20170822 Sch4 Item79 - was entitled "Power of registrar to request audit"] 

CHAPTER XII. GENERAL PROVISIONS

Enforcement Committee [...Title amended by Act 2017_009_290_20170822 Sch4 Item66 - was entitled "Powers of Authority and court"]**
94. General powers of Authority [...Title amended by Act 2017_009_290_20170822 Sch4 Item67 - was entitled "General powers of registrar"]
95. ... [...substituted by Act 2013_045_259_20140116 - was entitled "Powers of registrar to conduct on-site visit or inspection"] [...repealed by Act 2017_009_290_20170822 Sch4 Item68 - was entitled "Inspections and on-site visits"]
96. Powers of Authority after supervisory on-site inspection or investigation [...Title amended by Act 2017_009_290_20170822 Sch4 Item68(a) - was entitled "Powers of registrar after on-site visit or inspection"]
97. ... [...repealed by Act 2017_009_290_20170822 Sch4 Item70 - was entitled "Power of registrar to impose penalties"]
98. Power of court to declare person disqualified
...  [...Title deleted by Act 2017_009_290_20170822 Sch4 Item72 - was entitled "Enforcement committee"]
99. ... [...repealed by Act 2017_009_290_20170822 Sch4 Item73- was entitled "Referral to enforcement committee"]

Winding-up, business rescue and curatorship
100. Winding-up or sequestration by court
101. Business rescue
102. Appointment of curator
103. Appointment of business rescue practitioner or liquidator and approval of business rescue plan

Miscellanea
104. General interpretation of Act|
105. Right of appeal
106. Evidence
107. Regulations
108. Fees
109. Offences and penalties
110. Savings and transitional arrangements
111. Repeal or amendment of laws
112. Short title and commencement
Sch. SCHEDULE. LAWS REPEALED OR AMENDED (SECTION 111) [s111]
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Copyright Rita V. Felgate 2019