JSE Draws Up Proposed Debt Listing Requirements

National Treasury

The Johannesburg Stock Exchange (JSE) has released proposed new debt listing requirements.

In a statement, national treasury announced that it has been working closely with the JSE to ensure that the new proposals facilitate increased transparency and improved governance for state-owned enterprises (SOE).

Treasury also wants the proposals to complement government measures to strengthen SOE governance.

Proposed measures focus on procurement, domestic prominent influential persons and directors.

As regards procurement, the proposals call on issuers such as municipalities and SOEs to disclose their policy on the procurement of services and/or products on the applicant issuer’s website.

In terms of domestic prominent influential persons, the applicant issuer will be expected to have a policy dealing with the disclosure and treatment of domestic prominent influential persons at board level of directors of the applicant issuer.

Issuers will also require a policy on the nomination of directors to be drawn up that is open for inspection.

Meanwhile, treasury recently held a public workshop in conjunction with the Financial Sector Conduct Authority on treating customers fairly in relation to transactional accounts and fixed deposits.

The aim of the South Africa Retail Banking Diagnostic is to identify shortcomings in banks’ provision of transactional bank accounts and fixed deposit accounts and determine how identified major fair- treatment deficiencies could be addressed through market conduct regulation.

Some recommendations to address identified issues include introducing new obligations on financial institutions to ensure that changes to account and deposit products focus on product suitability for customers, considering new measures to promote the provision of transactional accounts that respond to the needs of low-income customers and implementing an improved disclosure programme for account and deposit product customers.

Treasury called for comment on the South Africa Retail Banking Diagnostic at the beginning of September 2018. Comment is invited until 16 October 2018.

Conduct standards for banks are under development.

Sabinet Cape Town Office