Securities Services Act, 2004 (Act No. 36 of 2004)Chapter VII : Code of Conduct71. Principles of code of conduct |
| (1) | The code of conduct must be based on the principle that an authorised user must— |
| (a) | act honestly and fairly, with due skill, care and diligence and in the interests of a client; |
| (b) | uphold the integrity of the securities services industry; |
| (c) | have and effectively employ the resources, procedures and technological systems for the conduct of its business; |
| (d) | seek information from a client regarding his or her financial position, investment experience and objectives in connection with the securities service required; and |
| (e) | act fairly in a situation of conflicting interests. |
| (2) | The code of conduct must in particular provide for— |
| (a) | the disclosure to a client of relevant material information, including the disclosure of actual or potential own interests of the authorised user; |
| (b) | proper record-keeping; |
| (c) | avoidance of fraudulent and misleading advertising, canvassing and marketing; |
| (d) | proper safekeeping, separation and protection of funds and transaction documents of clients; |
| (e) | where appropriate, suitable guarantees or professional indemnity or fidelity insurance cover; and |
| (f) | any other matter which is necessary or expedient to be regulated in the code of conduct for the achievement of the objects of this Act. |