The FSCA recently issued a statement on the Supreme Court of Appeal (SCA) ruling regarding JP Markets (Pty) Ltd. The SCA overturned a 2020 ruling by the Gauteng Division of the High Court (Johannesburg) which had allowed for the liquidation of JP Markets and ordered the FSCA to pay the costs of two counsel for JP Markets.
The main issues that the SCA dealt with were the FSCA’s power to apply for liquidation and whether there were just and equitable grounds for the winding-up of JP Markets.
In its statement, the FSCA confirmed that it intends to abide by the SCA’s judgment and will commence processing the application by JP Markets for an over-the-counter (OTP) product provider licence which application was pending. The FSCA also stated that it will give consideration to all outstanding enforcement actions. The FSCA further highlighted to bring to the attention of the public that JP Markets is not licensed as an OTP product provider, neither is it entitled to conduct the business of an OTP product provider, until a decision has been made by the Authority on the status of its application.
- To read the FSCA statement, click here.
- To read the SCA ruling, click here.
Read our previous article, Warning to unlicensed over-the-counter derivative providers, by clicking here.