Financial Markets Act, 2012 (Act No. 19 of 2012)

Regulations

Purchase

Schedule A

Operational Risk (as set out in Regulation 25)

Table 25(B)

Event-Type

List of activities

Internal fraud

•	Losses due to acts of a type intended to defraud, misappropriate property or circumvent Regulations, the law or company policy, excluding diversity/discrimination events, which involves at least one internal party

External fraud

•	Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party

Employment Practices and Workplace Safety

•	Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity/discrimination events

Clients, Products & Business Practices

•	Losses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product

Damage to Physical Assets

•	Losses arising from loss or damage to physical assets from natural disaster or other events

Business disruption and system failures

•	Losses arising from disruption of business or system failures

Execution, Delivery & Process Management

•	Losses from failed transaction processing or process management, from relations with trade counterparties and vendors