FSCA releases FMA Guidance Notice 1 of 2019 - what constitutes an 'exchange' as contemplated in the FMA
The purpose of the guidance notice issued by the Financial Sector Conduct Authority (FSCA) is to provide legal certainty in areas of the Financial Markets Act 19 of 2017 (FMA), where there is legal uncertainty regarding the application of the FMA.
The notice also serves to caution the public to refrain from purporting to be an exchange or referring to themselves as an exchange if they are not a licensed exchange in terms of the FMA.
The FSCA has received numerous queries and complaints from the public in respect of institutions purporting to be exchanges or performing exchange activities while they are not licensed as exchanges in terms of the FMA.
Section 4(2)(a) of the FMA prohibits a person who is not a licensed exchange from purporting to be an exchange or behave in a manner or use a name or description which suggests, signifies or implies that there is some connection between that person and an exchange.