Conflicts of Interest Policy
1. Purpose
Fidelis Wealth Management is a Trading Style of Fidelis Wealth Management (Labuan) Limited. This policy details how Fidelis Wealth Management will identify, prevent and manage conflicts of interest in respect of its business activities.
Fidelis Wealth Management is authorised by the Labuan Financial Services Authority (LFSA) and, as such, will act in accordance to the Conflicts of Interest rules as defined in the LFSA Handbook, which will take precedence over the requirements of this policy.
2. Review of Policy
This policy will be reviewed regularly, at least once a year, and amended as considered necessary by Fidelis Wealth Management Management Body in the event of changing circumstances or regulations.
3. Responsibilities
The Principle Office of Fidelis Wealth Management is responsible for ensuring that its systems, controls and procedures are able to identity, manage and control or prevent any potential and actual conflicts of interest that may arise.
4. Definition
A conflict of interest is a situation in which someone in a position of trust to the client has competing professional or personal interests. Such competing interests can make it difficult for individuals to fulfil their duties to their clients impartially. A conflict of interest may exist even if no unethical or improper act results from it.
Conflicts of interest arise when in the course of providing a service to a client, Fidelis Wealth Management, or its employees:
Are likely make a financial gain or avoid a loss at the expense of the client
Have an interest in the outcome of the service provided which is distinct from the client’s interest
Have a financial or other incentive to favour the interests of another client over the interests of the client
Carry on the same business as the client
Receive, from a person other than the client, an inducement in relation to the service provided to the client, other than the standard commission or fee for that service
5. Identifying, managing and preventing conflicts of interest
Fidelis Wealth Management has reviewed its business model and has identified the following potential conflicts of interest:
Employee Roles and Responsibilities
Management of Employees
Remuneration
Business interests
Connected persons
Means and Timing of Research
Inducements including Gifts and Hospitality
Personal account dealing
Customer orders versus firm business or other customers orders
Handling confidential and insider information flows
Fidelis Wealth Management will regularly review its business model to ensure any new potential conflicts of interest are noted and managed or prevented effectively.
5.1 Inducements including Gifts and Hospitality
Fidelis Wealth Management has a strict policy, which specifically prohibits employees from soliciting or accepting any inducements to conduct business in a specific manner that would give rise to a detriment to a client or to favour the interests of one client over another.
Fidelis Wealth Management recognises that Gifts and Hospitality can lead to potential conflicts of interest. Employees are not permitted to accept, or give to, any person any gift or other benefit that cannot properly be regarded as justifiable in all circumstances or may give rise to the perception that in doing so, decisions may be influenced or may not be impartial. All employees are expected to act with the highest standards of integrity to avoid any allegations of conflicts of interests.
Fidelis Wealth Management requires any employee who is offered any kind of gift or payment over an agreed limit from either inside or outside Fidelis WM to report this to the Nominated Officer for recording on the Gifts & Hospitality Register. In addition, any indications of expectation of support following a gift or hospitality of any value should be reported to the Nominated Officer.
The Nominated Officer will regularly review the Gifts & Hospitality Register to identify any conflicts of interest that may be occurring.
Fidelis WM's Gifts and Hospitality Policy contains further information and the agreed value limits set by the Management Body.
5.2 Personal Account Dealing Procedures
Fidelis WM recognises that employees dealing on their own personal account may present conflicts of interests. Fidelis WM provides an Advisory and Discretionary service this helps reduce the risk of potential conflicts of interest. In order to manage actual or potential conflicts that may arise from personal account dealing, Fidelis WM has Personal Account Dealing Procedures in place.
5.3 Customer Orders
Fidelis WM Order Execution Policy requires employees to take all reasonable steps to achieve the best overall trading result for clients; to exercise consistent standards; and operate the same processes across all markets, clients and financial instruments in which it operates.
Fidelis WM Client Order Handling Policy explains how Fidelis WM will handle client orders in relation to other clients’ orders and its own trading interests.
There may be occasions when clients’ orders may have a material effect on a relevant price. In order to ensure that a broker does not take advantage of the situation by dealing on his/her own account or encouraging a third party to deal, Fidelis WM has a strict “no front running” policy.
In order to ensure a fair and orderly dealing environment within the market, MB Capital requires its employees to comply with its Market Conduct Policy, as well as the relevant LFSA Rules, which aim to prevent insider trading, the misuse of information and market manipulation.
5.4 Handling confidential & inside information flows
Fidelis WM does not come across confidential and inside information as part our business activities, however, in order to ensure that in no circumstances the clients’ interests are damaged and/or create adversely affected Fidelis WM has designed and implemented adequate systems and controls to prevent the misuse of this information.
5.5 Need-to-know principle
Need-to-know principle is a frequently used principle in the financial industry that includes the obligation for staff to only share confidential and inside information where certain criteria are met to (i) mitigate the risks of market abuse and inside dealing, (ii) prevent or manage appropriately conflicts of interest and (iii) preserve clients interest and personal data.
Where sharing such data/information all staff have to ensure that:
The disclosure of confidential and inside information shall be accompanied by the imposition of confidentiality requirements on to whom the disclosure is made; and
The disclosure is reasonable and shall enable the person to perform the proper functions of his/her employment, profession or duties; or
The disclosure is reasonable, including for the purpose of facilitating any commercial, financial or investment transaction.
6. Recording conflicts of interest
Fidelis WM will record all conflicts of interest that arise, or may arise, on the Conflicts of Interest Register (Annex 1). It will be updated on a regular basis. The register will include the way Fidelis WM prevents of manages the conflicts and the person responsible. The Register will be organised by business lines, services or activities carried out.
The Conflicts of Interest Register will be provided to the Management body for review at least annually.
7. Disclosure or declining to act
For conflicts of interest that Fidelis WM cannot manage or prevent, Fidelis WM will either inform the client or decline to act for the client.
8. Breaches of Conflicts of Interest Policy
Any breaches of the Conflicts of Interest rules will be recorded on Fidelis WM's breach log in conjunction with its Regulatory Breach policy.
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