Bank

Finweek English Edition - - COMPANIES & INVESTMENTS - Marc Ash­ton

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.

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