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Regulatory Information

STRATE REGULATORY AND SUPERVISORY COMMITTEE

In terms of section 31 of the SSA, a CSD must have made arrangements for the proper supervision of compliance by Participants with the depository rules.
The Controlling Body of Strate has delegated their supervisory obligations to a sub-committee of the Controlling Body, namely the Strate Regulatory and Supervisory Committee.
The Committee’s overall objective is to assist the Controlling Body in discharging its regulatory and supervisory obligations in terms of the SSA and the Rules.

Terms of Reference
In order to assist the Controlling Body, the Committee is required to:
  1. Review the process of identifying the risks and exposures that arise within the ambit of the Strate Rules and Directives.

  2. Review the overall regulatory scope of the Strate Rules and Directives and consider, on an ongoing basis, whether they provide an adequate infrastructure to mitigate against risks that have been identified.

  3. Approve new Strate Rules and Directives and the subsequent amendments for issuance to Participants and other parties. In the case of amendments to Directives pertaining specifically to operational issues, the approval process will be sub-delegated to the Head of Supervision in accordance with the specific delegation by the Controlling Body.

  4. Approve a program of regulatory surveillance and enforcement to determine whether Participants and other parties that fall within the ambit of the Strate Rules and Directives comply with the SSA, Strate Rules and Directives.

  5. Review the findings of the surveillance or enforcement program and the penalties levied for such transgressions and/or other actions taken.

  6. On request, provide guidance in terms of a course of action arising from the findings referred to in 5 above.

  7. Review proposed Memoranda of Understanding between Strate and any other regulatory body and recommend their approval by the Controlling Body.

  8. Review the nature and extent of the liaison with other regulators of Participants and other external parties on matters of mutual concern and the effectiveness of the operation of the MOUs that have been entered into.

  9. Review any matters arising from the liaison with the FSB on Strate's regulatory functions and the enforcement thereof.

  10. Recommend to the Controlling Body the acceptance and/or expulsion of a person as a Participant in terms of the governing Rules and Procedures to enable the Controlling Body to make a final decision in this regard that is equitable and in the public interest.

  11. Ensure compliance with licensing conditions of Strate for new or existing Participants.

  12. Recommend to the Controlling Body the approval of Nominees to open accounts with Participants and to review such approval annually.

  13. Recommend to the Controlling Body to withdraw approval in terms of 12. above, in cases where the Nominee no longer meets the requirements imposed on Nominees to operate in the Strate environment.

  14. Monitor the activities of the Supervision Division of Strate.

  15. Monitor the workings of the Chinese Walls between Strate’s roles as CSD and SRO and obtain annual external assurance that independent structures, policies and procedures remain in place.