Regulatory Alerts2015-12-15
Public Notice on Fidelity Bonds for Capital Market Operators
The Securities and Exchange Commission mandates that all Capital Market Operators maintain valid Fidelity Bond or Professional Indemnity policies in strict compliance with amended Rule 27. Operators must ensure annual coverage runs from January 1 to December 31, extend any bonds expiring before December 31, 2016 to that date, and align insurance levels with their updated minimum paid-up capital. Non-compliant bonds are rejected without a grace period, and operating without valid coverage constitutes a sanctionable violation of the Investment and Securities Act 29 of 2007.
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