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Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)

Codes of Conduct

Notice on Codes of Conduct for Administrative and Discretionary FSP's, 2003

Chapter I : Code of Conduct for Administrative FSP’s, 2003

Part II : Operational requirements

3. Prohibitions and duties


3.1 An administrative FSP may not directly or indirectly without the relevant client’s prior written approval—
(a) sell to or provide a third party with a client’s details, unless obliged by, or in terms of, any law;
(b) exercise a vote in a ballot conducted by a unit trust management company;
(c) exercise voting rights on behalf of clients to gain control of a listed or unlisted company, except where such voting rights are exercised to protect the interests of clients on whose behalf the listed or unlisted securities involved are held, or on the instructions of such clients;


3.2 An administrative FSP may not directly or indirectly engage in the netting of transactions.


3.3 An administrative FSP may not directly or indirectly—
(a) sell any financial products owned by the administrative FSP to any client;
(b) buy for own account any financial products owned by any client.


3.4 An administrative FSP must—
(a) render to the client, on request and in a comprehensible and timely manner, any reasonable information regarding the financial products of the client and market practices and the risks inherent in the different markets and products concerned;
(b) obtain and transmit to a client any information which a relevant product supplier must disclose in terms of any law, unless the client specifically has requested in writing the administrative FSP not to provide such information.