concluded prior to his or her PA trading in that counter.”
The Registrar and FSB are very clear in saying that employees can either trade through their own bank or a “appointed, approved and recognised third party”.
We assume that Nedbank isn’t implying there is anything wrong with the integrity of the major trading desks in South Africa, so forcing employees and their “connected persons” on to your platform as a requirement for employment would be hard to argue.
With regards to non-executive di r ectors – you can’t argue that on the one hand they will b e b e t t e r managed because they have stricter rules – and then on the other say that you don’t need to manage their PA trading in the same way you manage your staff.
All trading is monitored by the JSE whether you work for a bank, stockbrokerage or you are trading as a retail customer. Anyone can report insider trading in any of the 400-plus JSElisted companies.
In terms of your fee structure for staff, I agree 100% that the 0.25% brokerage is very competitive. But charging a staff member a R250 fee to open an account? Charging R150 a month (R80 for research and R70 for live prices) is simply bizarre and comes back to the point that your employees should at least have the option of having access to the best, at the best price. Your Single Stock Futures (SSF) pricing is not particularly cheap either, but that might be nit-picking.
In terms of analyst ratings, these will always be contentious. The point I made was that there is a ranking system at the moment that’s accessible to market participants, and Nedbank doesn’t appear to have feat ured particularly prominently.
Finally, i nvestor education is a big bugbear for us here at Finweek and arguing that supporti ng seven JSE Showcases i n 1 8 mont h s , emphasises our point that this is not a high-priorit y for the participants in the local market, but that is a separate subject altogether.
In conclusion, we understand where Nedbank and the other banks are coming from, but there needs to be either consistency in what is offered to stakeholders, or material benefits for staff to use your platforms.