(1)
| (a) | The Directorate established by section 12 of the Insider Trading Act, 1998 (Act No. 135 of 1998), and that continued to exist under the Securities Services Act, 2004 (Act No. 36 of 2004), continues to exist under the name Directorate of Market Abuse, despite the repeal of those Acts. |
| (b) | A reference to the Insider Trading Directorate in any law must, unless clearly inappropriate, be construed as a reference to the Directorate of Market Abuse. |
(2)
| (a) | The directorate consists of members and alternate members appointed by the Authority. |
| (b) | The members of the directorate holding office at the date that Part 6 of Chapter 17 of the Financial Sector Regulation Act comes into force remain as members for the terms and subject to the conditions applicable to them on their respective appointments. |
| (c) | A member and an alternate member hold office for a period, not exceeding three years, as the Authority may determine at the time of the member’s appointment, and is eligible for reappointment upon the expiry of the member’s term of office. |
| (d) | If on the expiry of the term of office of a member, a reappointment is not made or a new member is not appointed, the former member must remain in office for a further period of not more than six months. |
| (e) | The Authority may remove a member of the directorate from office on good cause shown and after having given the member sufficient opportunity to show why the member should not be removed. |
| (3) | The members of the directorate may comprise of— |
| (a) | not more than two members of staff of the Authority; |
| (b) | one person and an alternate from each of the licensed exchanges in the Republic; |
| (c) | one commercial lawyer of appropriate experience and an alternate; |
| (d) | one accountant of appropriate experience and an alternate; |
| (e) | one person of appropriate experience and an alternate from the insurance industry; |
| (f) | one person of appropriate experience and an alternate from the banking industry; |
| (g) | one person of appropriate experience and an alternate from the fund management industry; |
| (h) | one person of appropriate experience and an alternate that represents institutional investors; |
| (i) | one person of appropriate experience and an alternate nominated by the South African Reserve Bank; |
| (k) | two other persons of appropriate experience and alternates, to ensure that the directorate is comprised of an appropriate mix of skills and experience. |
| (4) | The persons referred to in subsection (3) who are nominated— |
| (a) | must be available to serve as members of the directorate; |
| (b) | must have appropriate knowledge of financial markets; and |
| (c) | may not be practising authorised users. |
| (5) | The Authority must designate a chairperson, who may not be the Commissioner of the Authority, and a deputy chairperson who performs the functions of the chairperson when the office of chairperson is vacant or when the chairperson is unable to perform the chairperson’s functions. |
| (6) | All members of the directorate, other than the additional members, have one vote in respect of matters considered by the directorate, but an alternate member only has a vote in the absence from a meeting of the member whom the alternate is representing. |
| (7) | A meeting of the directorate is convened by the chairperson. |
| (8) | If four members of the directorate in writing request the chairperson of the directorate to convene a meeting of the directorate, a meeting must be held within seven business days of the date of receipt of the request. |
| (9) | A meeting of the directorate is chaired by the chairperson or, in the chairperson’s absence, by the deputy chairperson or another member designated by the chairperson or the remaining members. |
| (10) | The directorate determines its procedures, subject to any directions of the Authority. |
| (11) | The decision of a majority of the members of the directorate constitutes the decision of the directorate. |
| (12) | The Authority must ensure that written minutes of each meeting of the directorate are kept in a manner determined by the Authority. |
| (13) | A member of the directorate must disclose, at a meeting of the directorate, or in writing to each of the other members of the directorate, any interest in a matter that is being or is intended to be considered by the directorate, being an interest that— |
| (b) | a person has who is a related party to the member. |
| (14) | A disclosure in terms of subsection (13) must be given as soon as practicable after the member concerned becomes aware of the interest. |
| (15) | A member referred to in subsection (13) may not participate in the consideration of or decision on that matter by the directorate unless— |
| (a) | the member has disclosed the interest in accordance with subsection (13); and |
| (b) | the other members of the directorate have decided that the interest does not affect the proper execution of the member’s functions in relation to the matter." |
[Section 85 substituted by section 290, item 61 of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) - effective 1 April 2018 (Notice No. R. 99, GG 41433, dated 9 February 2018]
