Conflict of Interest Policy
Incredit fx capital Limited (hereinafter called the “Company”) is an Investment Firm regulated by the Marshall Islands Commission.Following the implementation of the Markets in Financial Instruments Directive in the Registration domicile and in accordance with the Investment Services and Activities and Regulated Markets Law , it is compulsory for the Company to provide its clients and potential clients with a summary of its Conflict of Interest Policy (hereinafter the “Policy”).
- Scope of the Policy
The purpose of the policy is to identify and prevent conflicts of interest, which may arise between the Company and its clients or between one client and another during the course of its business activities. The policy applies to all its directors, employees, or any persons directly or indirectly linked to the Company (hereinafter called the “relevant persons”).
- Identification of Conflicts of Interest
For the purposes of identifying the types of conflicts of interest that arise in the course of providing investment and ancillary services or a combination thereof and whose existence may damage the interests of a client, the Company takes into account, whether the Company or a relevant person, is in any of the following situations, whether as a result of providing investment or ancillary services or investment activities or otherwise:
- The Company or a relevant person is likely to make a financial gain, or avoid a financial loss, at the expense of the client;
- The Company or a relevant person has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome;
- The Company or a relevant person has a financial or other incentive to favor the interest of another client or group of clients over the interests of the client;
- The Company or a relevant person carries on the same business as the client;
- The Company or a relevant person receives or will receive from a person other than the client, an inducement in relation to a service provided to the client, in the form of monies, goods or services, other than the standard commission or fee for that service.
- Managing of Conflicts of Interest
The company has established the following procedures to avoid any conflicts of interest. The procedures are constantly monitored and reviewed in order for corrective measures to be implemented if any loopholes are identified.
4.1 In general, the procedures to be followed and measures to be adopted in order to manage such conflicts to ensure the necessary degree of independence include the following:
- effective procedures to prevent or control the exchange of information between relevant persons engaged in activities involving a risk of a conflict of interest where the exchange of that information may harm the interests of one or more clients.
- the separate supervision of relevant persons whose principal functions involve carrying out activities on behalf of, or providing services to, clients whose interests may conflict, or who otherwise represent different interests that may conflict, including those of the Company.
- the removal of any direct link between the remuneration of relevant persons principally engaged in one activity and the remuneration of, or revenues generated by, different relevant persons principally engaged in another activity, where a conflict of interest may arise in relation to those activities.
- measures to prevent or limit any person from exercising inappropriate influence over the way in which a relevant person carries out investment or ancillary services or activities.
- measures to prevent or control the simultaneous or sequential involvement of a relevant person in separate investment or ancillary services or activities where such involvement may impair the proper management of conflicts of interest.
4.2 More specifically, some of the procedures already established are as follows:
- Company Employees must comply with all rules regulations and directives of the competent authorities, the code of business contact for Investment Firms and for the natural persons employed by them.
- Company Employees are strictly forbidden to trade for themselves either on the Incredit fx platform or on any other platform either directly or through an intermediary/related party.
- Company Employees must be entitled to the same benefits as those of the parent company, thus avoiding any conflict of interest.
- Company Employees must follow the same code of operations as the Parent, thus avoiding any conflict of interest.
- Company Employees must report to their supervisor any potential conflict of interest related to a proposed transaction.
- Company Employees must report to their supervisor any special relationship they or any related party might have with a proposed transaction that might affect their judgment.
- Company Employees must consider commission rates, timeliness of trade executions, and the ability to maintain anonymity, minimize incomplete trades, and minimize market impact.
- Company Employees must not trade on material nonpublic information. In the case that an employee holds material non-public information he must report it to the supervisor or the compliance officer and in such case the financial instrument will be placed either in the restricted list or the watch list.
- Company Employees must provide the compliance officer with copies of their trades each month and quarterly statements of personal holdings.
- The compliance officer will be responsible for reviewing the company’s and employee transactions and to ensure the priority of client interests. Because personnel, regulations, business practices, and products constantly change, the role of the compliance officer (particularly the role of keeping the firm up to date on such matters) is that much more important. In this regard, each staff member will annually confirm in writing receipt of the procedures manual and agree to abide by its terms.
- The compliance officer documents and acts expeditiously to address any compliance breaches and take appropriate disciplinary action on their own authority, independent of management as warranted. If the compliance officer is unable to resolve any breaches on his own, he should sequentially seek the assistance of senior management or Board of Directors or outside counsel as needed. The compliance officer should report violations and other issues related to the procedures on a regular basis to the Board of Directors or the supervisor.
- Physical separation of departments. Chinese walls restricting the exchange of information within the Company and other companies belonging to the same Group. Information barriers will be in place to prevent communication of material information and other sensitive information from one company of the group to other companies so as to control the flow of such information.
- Procedures governing access to electronic data.
- Material information will be confined only to persons who have a need to know that information in order to carry out their responsibilities