Securities Services Act, 2004 (Act No. 36 of 2004)Code of Conduct for Authorised Users3. Furnishing of advice |
| (1) | An authorised user must, before advising a client— |
| (a) | take reasonable steps to seek from the client information about the client's financial situation, investment experience, particular needs and objectives in connection with the securities service required, to enable the authorised user to provide the client with sound advice; |
| (b) | conduct an analysis, based on the information obtained, for the purpose of advising the client; |
| (c) | identify the securities that will suit the client's risk profile and financial needs, subject to any contractual arrangement. |
| (2) | An authorised user must take reasonable steps to ensure that the client understands the advice and the risks involved and that the client is in a position to make an informed decision. |