Code of Conduct

This Code of Conduct, (The Code), forms the fundamental ethics and risk management culture that each Member of Exchange Trust must apply. The Code is a requirement of the Financial Markets Act of the Republic of South Africa (Act 19 of 2012) and Financial Advisory and Intermediary Services Act of the Republic of South Africa (Act 37 of 2002), it has been drafted according to the guidelines on Ethics Management of King III, and is designed to protect each Member of the Exchange.

The Code of Conduct covers the following topics: 

Our Common Goal

  • The Code of Conduct for Exchange Trust has been designed to protect its Members who share a common goal, namely;

 

"…To Trust the quality and reliability of products and services being Exchanged …"

  • The Code is owned by Exchange Trust, each Member by agreeing to the Terms and Conditions and this Code have adopted and have agreed to be bound by the rules of the Code. Exchange Trust has the obligation under the above referenced Acts, to ensure that its members act according to the code and it may therefore in the interest of all the Members terminate services to any Member who does not abide by the Code.

We Operate a Regulated Business

The business conducted on the platforms of Exchange Trust is of a sophisticated and regulated nature, in all global markets that it operates, it covers a significant degree of disciplines and product categories that each report to different regulators in different jurisdictions. As a result it is inefficient for Exchange Trust to attempt to be compliant to each of the various regulators. To ensure that Exchange Trust remains compliant and protects its Members, Members who are Product Administrators and Providers will be Regulated Licensed or Authorised Service Providers in the jurisdiction where the services are conducted. There are two categories of Authorised Service Providers namely; Product Providers and Product Administrators. Exchange Trust demands of these members to remain compliant at all times to their respective Regulatory bodies and act according to the various Codes of Conduct in their respective industries.

 

Requirements for Product Administrators

Administrators provide Intermediary Products and Services as defined in the above Acts. These members process payments, issue products, provide financial and product reconciliations, process claims, provide product custodial services, complaint management and resolution service, provide record keeping and reporting on financial transactions and contracts according to the requirements of the various regulatory bodies governing such Administrator. Administrators maintain a register: Intermediaries who provided advice, Recording and Reporting on non-compliant transactions. These Administrators will at all times provide accurate and reliable data that will be used as a foundation for Members and Users to make decisions, issue or demand settlement through the Exchange Trust, Issue Products or Terminate services. 

Requirements for Product Providers

 

Product Providers provide advice on products, natural or legal entities. Product Providers maintain a record of the Advice Provided, Guarantees Provided and Sales Records of a particular Product to any Exchange Trust Member.

 

What Does Advice Giving Mean

In terms of Exchange Trust, advice is to; cause any recommendation, guidance or proposal of a cognitive nature, by any means or medium, given to any entity or group of entities on products with the intention of getting the entity to consider:

  • Entering into a financial transaction in respect of a Product offered via Exchange Trust

  • Investing in a product listed by Exchange Trust

  • Varying, replacing or terminating the use of a product whether or not such product is currently or was previously offered by Exchange Trust

 

The conclusion of any transaction related to any product listed by Exchange Trust, including a loan, a cession, a guarantee, a surety or a commodity aimed at incurring liability or acquiring rights/benefits in any such product by a Member of Exchange Trust. This applies regardless of whether or not such advice:

  • Is incidental to the planning of the affairs of a client or

  • Results in any transaction, purchase, investment, variation, replacement or termination being effected of any product whether or not such product is currently or was previously offered by Exchange Trust

  • It covers all products as defined in the Terms and Conditions

The Product Providers commit to ensure that their representatives provide advice which is accurate, relevant, unbiased, with appropriate skill and always in the best interest of the Members.


Disclosure of Information

 

Each Member has the right to access information about the Product Providers and Product Administrators that provide Products, Sell Products or provide Services via Exchange Trust. Such information shall be accessible at product level and be available to print on relevant product documents. The information disclosed shall be:

  • Contact Detail

  • Physical Address

  • Public Officer or Responsible Party contact Detail

  • Compliance Officer contact Detail, where applicable

  • Contact person and detail for Complaints

  • Key Person contact detail, where applicable

  • License and Licensing Authority

  • License Category and Restrictions (if any)

  • Indemnity & Fidelity Insurance (if any)

 

Confidentiality Undertaking

 

All Members shall treat information gained via Exchange Trust about other Members as confidential. Members shall avoid any unsolicited contact with other Members and/or Users. The confidentiality and data privacy shall be as per the Terms and Conditions. 

Segregated Funds, Accounts and Audits

Exchange Trust will at all times maintain funds of Members and Users in separate and appropriately segregated accounts in terms of the requirements of the National Payment System Act of the Republic of South Africa (Act 78 of 1998), for System Operators and Third Party Payment Providers. No Member or User funds will be maintained in any business account of Exchange Trust. Funds, and Transaction Histories of Members and Users are subject to external Audit of the Member's Auditors. Exchange Trust will make available system generated audit trails to a Member's registered Auditor, on 30 Days written notice, subject to the payment of the relevant fees to Exchange Trust.

Complaint Procedure

 

The Code of Conduct applies to Members, should any Member have a complaint, such complaint must first be raised with the respective Member. Should such complaint fail to be resolved, a Member can lodge a complaint directly with Exchange Trust to consider. Exchange Trust will use its discretion and judgement in assessing the complaint of the Member prior to contacting the affected Product or Service Provider. The manner and objective will be to resolve the complaint prior to it escalating to a disciplinary action or a dispute which will be dealt with in terms of the dispute resolution procedures recorded in the Terms and Conditions. Any complaint raised by an entity who is not a Member of Exchange Trust will not be considered. Members shall refrain from public criticism and slander of other Members via social media, such activity may result in termination of membership.   


Fraud Prevention

Fraud or Potential for fraud will compromise the integrity of Exchange Trust, the Members of Exchange Trust, our regulatory and financial reporting as well as our physical and intellectual assets. Fraud is the act by any user to intentionally misrepresent or conceal facts that cause another user or potential user to act or not to act based on the misrepresentation or concealment. It may be committed by one or more Members of Exchange Trust. All Members have the responsibility to avoid participating in any fraudulent activity and have the additional responsibility to disclose such fraud or potential fraud to Exchange Trust at compliance@exchangetrust.co.za . In order to remain compliant to this rule no Member shall impersonate another Member, or use the log-in credentials of another Member to impersonate or Act on behalf of such a Member. 

 

General Undertakings

Exchange Trust Undertakes to its Members, to:

  • Monitor on an ongoing basis the compliance of its Members

  • Monitor external developments relating to codes of conduct, legislative changes and related issues

  • Act fairly and reasonably towards its Members in a consistent and ethical manner 

  • Comply with all relevant laws relating to its services

  • If this Code imposes an obligation on Exchange Trust, in addition to obligations applying under a relevant law, Exchange Trust will also comply with this Code except where doing so would lead to a breach of a law (for example, a privacy law)

  • In addition to any Member's rights under this Code of Conduct, the Member also retains any rights he/she may have under any other law in any other Territory where the Member resides and has use of the services of Exchange Trust.

  • ETSS will provide a Member or a User with any information as is required in the various Acts noted in the Terms and Conditions, such information may be made available to the Member or User within a reasonable time and against payment of a reasonable fee as per ETSS Terms and Conditions.

  • Exchange Trust will charge reasonable fees and disclose such fees to Member's at the time such services are being provided or at any other time as requested. Where such service fee changes or is updated, the Member will be informed with a minimum of 30 Days notice.

Members undertake to:

  • Provide information about themselves that will appropriately identify themselves, using information which is accurate, not misleading, valid and current at the time it is requested by and provided to Exchange Trust.

  • Notify Exchange Trust immediately once it becomes known that its Access Codes have been compromised in any manner.

  • To act with integrity towards other Members of Exchange Trust.

  • Effective Date and Improvements:

  • This Code is affective as of 31 September 2019 and replaces any Exchange Trust Code communicated before this date either in writing or implied. Exchange Trust will consult with its Members on a regular basis to continuously work towards improving its Code of Conduct and Service Standards.
     

 
 
 
 
 
 
 
 
 
 
 
 

Copyright Exchange Trust Settlement Services 2021