COVID-19: IMPACT ON COMPLIANCE WITH VARIOUS REQUIREMENTS OF THE SOUTH AFRICAN FINANCIAL MARKETS ACT, 2012

Monday, April 06, 2020
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The Financial Sector Conduct Authority (FSCA) published FSCA Communication 15 of 2020 (FM) - Supervision on 3 April 2020, acknowledging the impact of COVID-19 and the nationwide lockdown in South Africa on the financial services industry. As a result, the FSCA announced extensions to the period/s to comply with various requirements that are contained in the Financial Markets Act, 2012 (FMA).

Of particular importance for regulated persons is the extension of the period within which a regulated person must cause the accounting records and annual financial statements to be audited as required in section 90 of the FMA, read with paragraph 8 of Board Notice 96 of 2013 (see section 2).

Please note that for the purposes of this specific Communication, a regulated person is defined to mean a licensed central counterparty; a licensed central securities depository; a licensed clearing house; a licensed exchange; a licensed trade repository; an authorised user (e.g. a licensed member of a South African stock exchange, such as the JSE); a clearing member; a nominee; and a participant. 

For the avoidance of doubt, persons registered only as financial services providers under the Financial Advisory and Intermediary Services Act (FAIS) are not ‘regulated persons’ in the context of this Communication.

Of particular importance for issuers is the extension of the period to comply with various timeframes referred to in the JSE listing requirements and the JSE debt listing requirements, made under section of 11 of the FMA (see section 3).