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

Part III : Special Provisions applying to Forex Investment Intermediaries

7. Insurance

 

 

1) A forex services provider must if, and to the extent, required by the registrar, maintain in force suitable guarantees or professional indemnity or fidelity insurance cover.

 

2) A forex services provider who does not hold investments in safe custody on behalf of clients must ensure that the foreign forex services provider or clearing firm that holds such deposits does maintain insurance cover as is required by its regulators to cover the risk of losses due to fraud, dishonesty and negligence;