Securities Services Act, 2004 (Act No. 36 of 2004)Code of Conduct for Authorised Users4. Disclosure to clients |
| (1) | When an authorised user renders a securities service, representations made and information provided to a client by the authorised user— |
| (a) | must be factually correct; |
| (b) | must be provided in plain language, avoid uncertainty or confusion and not be misleading; |
| (c) | must be adequate and appropriate in the circumstances of the particular securities service, taking into account the factually established or reasonably assumed level of knowledge of the client; |
| (d) | must be provided timeously so as to afford the client reasonably sufficient time to make an informed decision about the proposed transaction; |
| (e) | may be provided orally and must, if the client so requests, be confirmed in writing within a reasonable time after such request; |
| (f) | must, if provided in writing or by means of standard forms, be in a clear and readable print size, spacing and format; |
| (g) | must, as regards all amounts, sums, values, charges, fees, remuneration or monetary obligations mentioned or referred to therein, be reflected in specific monetary terms: Provided that where any such amount, sum, value, charge, fee, remuneration or monetary obligation is not reasonably predeterminable, its basis of calculation must be adequately described; and |
| (h) | need not be duplicated or repeated to the same client unless material or significant changes affecting that client occur, or the relevant securities service renders it necessary, in which case a disclosure of the changes to the client must be made without delay. |
| (2) | An authorised user— |
| (a) | must disclose full and accurate information about the fees and any other charges that may be levied on clients; |
| (b) | must provide best advice taking into account the desires and circumstances of a particular client, and may not advise clients with the sole purpose of maximising the income of the authorised user; |
| (c) | may not disclose any confidential information acquired or obtained from a client about such client, unless the written consent of the client has been obtained beforehand or disclosure of the information is required to further the objects of the Act or is required under any law; |
| (d) | must act promptly on and in accordance with the instructions of a client, and exercise any discretion in a responsible manner; |
| (e) | must advise a client in advance of any restrictions or limitations that may affect the access of that client to his or her funds or securities; |
| (f) | must provide a general explanation of the nature and material terms and risks of a relevant transaction to a client, so as to enable the client to make an informed decision; and |
| (g) | must disclose to the client the existence of any personal interest in the relevant service, or of any circumstance which gives rise to an actual or potential conflict of interest in relation to such service, and take all reasonable steps to ensure fair treatment of the client. |