FSCA fines JP Markets SA (Pty) Ltd R100 000 for unauthorised ODP business
The Financial Sector Conduct Authority (FSCA) announced in a release dated 10 May 2023 that it had imposed an administrative penalty of R100 000 on JP Markets SA (Pty) Ltd. The regulator found that the firm had conducted over-the-counter derivative provider business without authorisation.
Key facts
- Finding
The FSCA found that JP Markets conducted unauthorised over-the-counter derivative provider (ODP) business.
- Entity
JP MARKETS SA (PTY) LTD
- Requirement
Section 2 of the ODP Regulations; the activity involved CFDs relating to forex pairs, shares and indices.
- Procedural stage
Administrative penalty of R100 000 imposed.
CFD activity without ODP authorisation
According to the FSCA, its investigation found that JP Markets SA (Pty) Ltd provided clients with the opportunity to trade contracts for differences (CFDs) relating to forex pairs, shares and indices on a trading platform while it was not authorised to act as an ODP. The regulator said this conduct contravened section 2 of the ODP Regulations.
Earlier liquidation order overturned
The release also recounts the FSCA's earlier liquidation application under section 96 of the Financial Markets Act No. 19 of 2012 and section 38B of the Financial Advisory and Intermediary Services Act 37 of 2002. The High Court liquidated JP Markets on 8 September 2020.
According to the FSCA, the Supreme Court of Appeal overturned that order on 20 October 2021 because liquidation was not a just and equitable remedy in the circumstances. The appeal court nevertheless confirmed that JP Markets' business fell within the definition of an ODP.
Official source
FSCA press release dated 10 May 2023 concerning the administrative penalty imposed on JP Markets SA (Pty) Ltd.
FSCA · 2023-05-09
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