Securities Services Act, 2004 (Act No. 36 of 2004)Code of Conduct for Authorised Users9. Client statements |
| (1) | An authorised user must provide to a client a written statement which complies with this Code of Conduct. |
| (2) | Statements shall be provided to clients— |
| (a) | at regular intervals which may not exceed three months, unless the client consents in writing not to receive the statements because they are able to access the information made available by the authorised user through electronic means, such as the internet, on a continuous basis; or |
| (b) | at such intervals of less than three months as the client requests, although the authorised user shall not be obliged to provide statements more frequently than monthly; or |
| (c) | monthly if the client’s portfolio as managed by the authorised user includes any open positions in listed derivative instruments; or |
| (d) | at such intervals as may be agreed between the authorised user and a professional client. |
| (3) | A client statement must contain such information as is reasonably necessary to enable the client to— |
| (a) | produce a set of financial statements; |
| (b) | determine the composition of the securities comprising the portfolio held by the authorised user or for which the authorised user is accountable to the client and the changes thereto over the reporting period, if applicable; and |
| (c) | determine the market value of the securities comprising the portfolio held by the authorised user or for which the authorised user is accountable to the client and the changes therein over the reporting period, if applicable. |
| (4) | To provide the client with the information necessary for them to review the operation of their account and make appropriate investment decisions, a client statement must contain at least the following information: |
| (a) | the quantity, description and market value of each investment comprising the portfolio held by the authorised user or for which the authorised user is accountable to the client, at the reporting date; |
| (b) | the amount of funds held by the authorised user or which has been invested by the authorised user on behalf of the client and for which the authorised user is accountable to the client, at the reporting date; |
| (c) | if any of the securities are reflected in a foreign currency, the relevant currency exchange rate at the reporting date must be reflected; |
| (d) | securities purchased or sold during the reporting period; |
| (e) | receipts and payments of funds during the reporting period; |
| (f) | details of income earned and expenditure incurred during the reporting period; |
| (g) | non-cash transactions during the reporting period, including non-cash components of corporate actions and option expiries; |
| (h) | securities transferred into and out of the portfolio during the reporting period; |
| (i) | identification of those securities which at the reporting date were loaned to any third party but for which the authorised user is still accountable to the client; |
| (j) | the quantity, description and market value of any securities, or the amount of funds, held as collateral by the authorised user on behalf of the client in respect of any loans made by the client; |
| (k) | identification of those securities or funds which at the reporting date were utilised to secure loans to the client or borrowings made on behalf of the client; |
| (l) | identification of those securities or funds which at the reporting date were utilised as margin in respect of open positions in any financial product; |
| (m) | in respect of investments in listed derivative instruments, a description of the underlying financial product, index, commodity or thing, the expiry month and in the case of options, the exercise or strike price; and |
| (n) | if the statement reflects any securities or funds which are not held by the authorised user and for which the authorised user is not accountable to the client, it should clearly indicate that fact in relation to such securities or funds. |
| (5) | The information referred to in subparagraph (4) may be provided to the client in separate statements either during the reporting period or as at the reporting date. |
| (6) | A client statement shall be provided either to the client or to an agent or third party nominated by the client in writing. |