Stamp Duties Act, 1968 (Act 77 of 1968)
R 385
Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)Codes of ConductAmendment of the General Code of Conduct for Authorised FSPs and Representatives, 2020Part VIII : Custody of financial products and funds |
10.
| (1) | Subject to the provisions of any other applicable Act, a provider who receives or holds financial products or funds of or on behalf of a client must account for such products or funds properly and promptly and— |
| (a) | when documents of title are lodged with the provider on behalf of the client, the provider must immediately provide written confirmation of receipt thereof which contains a description of the documents that is sufficient to identify them; |
| (b) | when a provider receives funds into safe custody without the mediation of a bank, the provider must on receipt of the money, issue a written confirmation of receipt thereof; |
| (c) | where the provider, or a third party on behalf of either of them, is in control of such financial products or funds, take reasonable steps to ensure that they are adequately safeguarded; |
| (d) | open and maintain a separate account, designated for client funds, at a bank and— |
| (i) | must within one business day of receipt pay into the account all funds held on behalf of clients; |
| (ii) | ensure that the separate account only contains funds of clients and not those of the provider; |
| (iii) | pay all bank charges in respect of the separate account except that bank charges specifically relating to a deposit or withdrawal of the funds of the client are for the client's own account; and |
| (iv) | ensure that any interest accruing to the funds in the separate account is payable to the client or the owner of the funds; |
| (e) | take reasonable steps to ensure— |
| (i) | that at all times such financial products or funds are dealt with strictly in accordance with the mandate given to the provider; |
| (ii) | that client financial products or funds are readily discernible from private assets or funds of the provider; and |
| (iii) | that, subject to any applicable contractual or statutory provisions, a client has ready access to any amount paid into the separate account, less any deductions which are authorised, and charges and fees required or authorised to be paid by law. |
| (2) | Where a transaction or agreement has been recorded in writing, the provider who dealt with the client, must ensure that the original agreement is delivered to the client for safe custody. |
| (3) | Section 10(1)(d) is not applicable to a provider— |
| (a) | who receives, holds or in any other matter deals with premiums payable under a short-term reinsurance policy; or |
| (b) | who is subject to section 45 of the Short-term Insurance Act, 1998 (Act No. 53 of 1998), if the provider complies with the requirements contemplated in that section. |
