Securities Services Act, 2004 (Act No. 36 of 2004)Code of Conduct for Authorised Users6. Inducements |
| (1) | An authorised user must take reasonable steps to ensure that it and any person acting on its behalf does not offer, give, solicit or accept any incentive, remuneration, consideration, commission, fee or brokerage ("valuable consideration") as an inducement if it is likely to conflict with any duty that the authorised user owes to its clients in respect of securities services provided to those clients or any duty that the recipient of the inducement owes to its clients. |
| (2) | Without limiting the generality of 6(1), any valuable consideration offered, given, solicited or accepted as an inducement by an authorised user or any person acting on its behalf, in terms of an agreement with a third party or a client which relates to the provision of securities services by the authorised user to one or more clients, and which does not directly relate to, and assist in the provision of, such services to such clients or does not otherwise directly benefit the clients of the recipient of such valuable consideration, shall constitute an inducement prohibited in terms of 6(1). |
| (3) | An authorised user who, in terms of an agreement with a third party, directly or indirectly accepts any valuable consideration as an inducement in respect of a securities service rendered to a client, or for which the authorised user may become eligible, must disclose to the client in writing before the rendering of such service, the existence of the agreement, the nature, extent, value and frequency of receipt of such valuable consideration to the extent that such information is known prior to the rendering of the service, and the identity of the other person providing or offering the valuable consideration. |