The Controlling Body of Strate supervision issued Circular 12P/2017, Agreed Upon Procedures and Assurance Reports on Controls at a Service Organisation performed by the Registered Auditor reporting in terms of the Strate Central Securities Depository (Strate) Rules and the Financial Markets Act (FMA).
The Circular contains the agreed-upon procedures to be performed by the registered auditor of a participant regarding the implementation and operating effectiveness of key controls (identified by management of the participant), that are designed to meet the control objectives (specified by Strate (Pty) Limited Strate), for transactions relating to the settlement, custody and administration, of Strate eligible securities.
The Circular also contains the “control objectives” against which controls should be described, designed, implemented and operated effectively by the Participant (Participant includes “Primary Participant” and “Secondary Participant” where applicable) for transactions relating to the settlement, custody and administration of Strate eligible Securities based on suitable criteria. The Registered Auditor shall report on the Participant’s description of its system of processing customers’ transactions throughout the period (the description), and on the design and operation of controls related to the control objectives stated in the description in accordance with International Standard on Assurance Engagements (ISAE) 3402 “Assurance Reports on Controls At Service Organisations” (“ISAE 3402”) (Type II report).
|Title||Date issued||Effective date||Documents|
|The Controlling Body of Strate supervision issued Circular 12P/2017 in November 2017 which replaces Circular 11P/2016.||November 2017||November 2017||The report is on the Strate website.|
Auditors are alerted to the fact that the CFAS was not involved in updating or approving the Circular for use by auditors.