- imposing strict membership requirements, both statutory and under JSE rules;
- ensuring the capital adequacy of its members;
- monitoring systems to measure and control risk attributable to market transactions;
- centrally recording and monitoring the accounting records of members;
- segregation of client monies from the member's money;
- maintenance of strict procedures regulating the administration of discretionary account clients' monies, which must be held in JSE Trustees (Pty) Limited (JSET), and securities held by members to be lodged in safe custody at a bank;
- a JSE guarantee fund to meet qualifying claims by investors in the event of a member's default;
- fidelity insurance cover for individual members against qualifying losses including those resulting from fraud or theft of own or clients' securities or cash.
SECA, complemented by JSE rules and directives, supports these measures, and regular surveillance of members to ensure adherence, including surprise audits, is backed by disciplinary procedures. In addition each member is required to undergo a full annual audit together with at least two scrip counts by an independent firm of auditors.
A more detailed account of the investor's protection is contained in the publication 'Summary of Protection for Investors and Members of the JSE' which is available from the Public Relations Department of the JSE.
FURTHER INFORMATION CAN BE OBTAINED FROM
Internet : http://www.jse.co.za Johannesburg Stock Exchange * Public Relations Department 17 Diagonal Street * Johannesburg 2001 * Telephone 27 11 377 2200 P O Box 1174 * Johannesburg 2000 * Telefax 27 11 834 7402
