Ethics and Conduct in Trading

Code of Conduct Overview

• Trading members must demonstrate high integrity and fair dealing in all business interactions.
• Acceptance of non-business inducements for business benefits is prohibited.
• Providing false or misleading information that could impact IRC security prices is not allowed.
• Engaging in market manipulation or facilitating dishonest transactions is strictly forbidden.
• Activities must align with the objectives of the Act and uphold the dignity of the JSE.

General Client Conduct

• Members must act honestly and fairly, maintaining due skill and diligence in client dealings.
• Independent professional judgment is essential when serving clients.
• Prompt response to client instructions with responsible discretion is required.
• Conflicts of interest must be managed through disclosure, with client interests prioritized.

Investment Advice and Discretion

• Trading members should gather comprehensive information about the client's financial situation and investment goals for effective advice.
• A thorough analysis of client information is required to recommend suitable JSE authorized investments.
• Clear and understandable communication of investment advice, including risks and terms, is necessary to empower client decision-making.
• Advice must not be motivated solely by the trading member’s potential income.

Client Disclosure Obligations

• All representations and information provided to clients must be factually correct and clearly articulated.
• Financial amounts related to services must be disclosed in specific monetary terms whenever possible.
• Confidential client information is protected unless client consent is obtained for disclosure.
• Clients must be informed about any restrictions that may affect access to their funds or investments.

Record Keeping Requirements

• Members must maintain safe, accurate, and complete records of all services rendered to clients.
• Documentation includes communications, transactions, contracts, and relevant client particulars.
• Records can be stored electronically, in print, or via voice recordings and must be available for inspection within seven days.
• Transaction instructions must be kept for at least six months; other records for five years.

Client Contact and Communication

• Adequate resources must be in place to ensure clients can easily contact the trading member for inquiries or issues.
• Members are prohibited from inducing clients to waive rights or benefits under the code.

Financial Resource Management

• Members must ensure sufficient financial resources are maintained to meet obligations and manage risks effectively.

Internal Risk Management Protocols

• Trading members should implement comprehensive resources and procedures to prevent financial losses due to theft, fraud, or negligent practices.
• Proper training and supervision of staff are essential for maintaining operational integrity.

Regulatory Cooperation

• An open and cooperative relationship with the JSE is required, with a focus on timely information sharing regarding regulatory matters.
• Reasonable support must be provided to law enforcement or regulatory agencies during investigations.

Employee Code Enforcement

• The code's provisions must be enforced for all employees within the trading member's organization.

Unsolicited Calls Policy

• Transactions resulting from unsolicited client calls are permissible if IRC Rules are followed.

Advertising Protocols

• Advertising must convey accurate, complete information about investments and services, highlighting the risks of loss.
• Ads must distinguish between fact and opinion and must not imply that trading derivative instruments is suitable for everyone.