FSB clarifies ZAR X licence application process
THE registrar of securities services within the Financial Services Board (FSB) is not empowered under the Financial Markets Act to grant conditional licences to an applicant, a ruling by the FSB’s appeal board has found.The finding is contained in a ruling by Judge LTC Harms in response to a complaint by the JSE against the conditional licence granted by the FSB to aspirant competitor ZAR X.ZAR X is an applicant for a new platform for the trading of securities and was granted the conditional licence in March.The ruling by Harms overturns the FSB’s decision on the licence on the technical ground that it has not been empowered to grant a conditional licence in the first place.FSB deputy executive officer Bert Chanetsa said the ruling clarified what was a grey area in the law and implied that in the future any application for a securities trading licence would need to be adjudicated in full on its merits.Chanetsa said the point of granting a conditional licence, which was allowed for i...
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