[1.0 Introduction]

The Listing Authority has noted that a number of directors of companies licensed in terms of the Investment Services Act are also acting as directors of listed entities. Although the Listing Authority appreciates the fact that these persons may bring to the board of listed companies valuable expertise and experience, the Listing Authority is concerned that these persons’ independence towards their investment firms’ clients and towards the listed entities may be compromised or may be perceived to be compromised.

In view of the above, the Listing Authority is introducing new Listing Rules to address this situation.

The new Listing Rules being introduced will prohibit directors, partners or employees of Investment Services Licence Holders who are also authorised to provide investment advice and/or portfolio management from acting as directors of listed entities.. Accordingly persons who are directors of Investment Services licence holder but who do not personally provide investment advice and/or portfolio management may continue to act as directors of listed companies.

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