Shawn Barnett (ZA)

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A warning to all unlicensed over-the-counter derivative providers

JP Markets, which markets itself as a global forex powerhouse, has been placed under final winding up as a result of a successful liquidation application brought by the Financial Sector Conduct Authority (FSCA). The FSCA brought the application in terms of section 38B of the Financial Advisory and Intermediary Services Act (FAIS Act) and section … Continue reading

Entering into a compromise with creditors – ten things to consider

Companies may attempt to rearrange their financial affairs to minimise the financial impact of the pandemic (or for any other reason). Section 155 of the Companies Act provides an informal mechanism of restructuring a company’s obligations to creditors. Here are 10 things to consider when entering into a compromise with creditors: A compromise is an … Continue reading

10 things to know about OTC derivative provider licences in South Africa

South Africa has supported the G20’s efforts to reduce the risk posed by over-the-counter (OTC) derivatives, and has put in place a regulatory framework for the licensing of OTC providers that originate, issue, sell or make a market in OTC derivatives. The Financial Markets Act 2002 prescribes criteria for the authorisation of OTC derivative providers. … Continue reading

10 things to know about business rescue

Business rescue offers a very useful alternative to the liquidation or winding-up of a company. During and after the pandemic, many companies may have to consider whether business rescue is an appropriate response to the economic impact that COVID-19 may have had on their business. Here are 10 things to know when considering business rescue: … Continue reading

Directors beware: The CIPC has not temporarily softened the solvency and liquidity test

The content of a recent Companies and Intellectual Property Commission (CIPC) practice note in which the CIPC committed not to exercise its powers relating to temporarily insolvent companies must not be confused with the solvency and liquidity test. The board of a company is still obliged to fully apply the solvency and liquidity test wherever … Continue reading

Asset management in South Africa – Ten things to know

1. Licensing of asset managers South African asset managers must register as financial service providers (FSPs) with the Financial Services Board (FSB) under the Financial Advisory and Intermediary Services Act (FAIS). Any person carrying on asset management business in South Africa, or from abroad directed at South African clients, whether in a discretionary or non-discretionary capacity … Continue reading
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