JSE Rule111 – RMOC has been created to recognize the RMOC as the body that oversees the JSE’s regulatory responsibilities as well as fulfils the organization’s disciplinary functions.  Also JSE Rule 229– Disciplinary Proceedings has been amended to define disciplinary proceedings, acts of misconduct and disciplinary procedures. Prior to the demutualization of the Exchange, these functions were undertaken by the Disciplinary Committee that was comprised of the Independent Directors of the JSE’ Board. The structure and role of RMOC had similarities to the Exchange’s Disciplinary Committee and as such, the rule amendments were necessary to eliminate the redundancy as well as to clearly define the RMOC in the rules of the Exchange.

The amendment to JSE Rule 229 has created a process that allows case reviews and referral to a Hearing Panel. The Hearing Panel will undertake preliminary hearings and hearings as well as provide an option to appeal. Timeline for hearings are defined and the procedures to submit documents and materials are outlined. Additionally, penalties of expulsion, fines and reprimand are included in the rule.

These new rules are based on models of demutualized Stock Exchanges in developed markets and are deemed apposite at this time as they fulfil one of the RMOC’s objectives of implementing rules that are not only beneficial for market practitioners, but are also reflective of international best practices and regulatory requirements.