Application
This Conflicts of Interest Policy (“Policy”) should be read in conjunction with the Terms of Business that we have entered into.
This Policy applies to Amius Group’s subsidiaries, namely, Amius Limited; Amius Pte. Limited; and Amius Futures LLC (collectively “Amius”).
This Policy must be adhered to by Amius’ directors, management, employees or any person directly or indirectly linked to it by control (together “employee” or “employees”).
Introduction
In accordance with the FCA’s rules on Conflicts of Interest (“Conflict”)[1] Amius endeavors at all times to act professionally with its clients’ best interests in mind and is committed to managing Conflicts fairly.
The purpose of this document is to provide clients and employees with a high level summary of the Conflicts Framework that Amius has in place. Amius will:
- take all appropriate steps to identify Conflicts between (i) Amius and its clients; and (ii) between Amius’ clients;
- maintain a record of Amius’ services and activities in which Conflicts may arise;
- keep and regularly update a record of any Conflicts that have been identified;
- take all appropriate steps to prevent or manage such Conflicts from constituting a material risk of damage to the interests of Amius’ clients;
- as a last resort disclose any Conflicts where Amius determine that the risk of any possible damage to a Client’s interests cannot be managed effectively; and
- review its Conflicts policy and controls on an least an annual basis.
Identifying Conflicts
A Conflict may arise where a service is provided to a client and their interest competes with either another client’s interest, or the interests of Amius or its employees.
Certain activities, if not properly managed, have the potential to give rise to a Conflict which could be damaging to the interests of Amius’ clients. For example, a Conflict may arise where Amius or one of its employees:
- is likely to make a financial gain, or avoid a financial loss, at the expense of a client;
- has an interest in the outcome of a transaction or service provided to a client which is distinct from the client’s interest;
- has a financial or other incentive to favour the interest of one client or group of clients over the interests of another client;
- carries on the same business as the client; or
- receives or pays money or non-monetary benefits (such as goods or services) from or to a third party other than the standard fees and commissions.
Recording Conflicts
Amius record all identified Conflicts within a register which is reviewed, updated and provided to Amius’ Management and Risk Committee (“M&RC”) on a quarterly basis.
Managing Conflicts
Amius maintain procedures to manage each identified Conflict:
Personal Account Dealing (“PAD”)
A Conflict may arise where an employee misuses information in relation to a client order and trades for their own account at the expense of a client.
Amius manage this Conflict by requiring all staff to seek permission to undertake PAD.
Remuneration
A Conflict may arise where Amius remunerates employees in a way which Conflicts with a client’s interests. For example, where front office employees are remunerated based on their volume of sales, and such sales involve products which are not suitable or are not in the best interests of a client.
Amius manage this Conflict by maintaining a Remuneration Policy which sets out how remuneration awards are designed not to incentivise an employee to act contrary to a client’s best interests. Amius’ Product Governance Framework also ensures that its OTC structures are suitable for clients (see below: Amius acting as a Manufacturer and Distributor of OTC products).
Order Handling and Multiple Capacities of Traders
A Conflict may arise where Amius fails to act in the best interest of a client when executing an order, either by favouring another client or putting Amius’ interests first.
Amius manage this Conflict by maintaining an Order Execution Policy. Orders must be executed sequentially and in line with a number of specified execution factors. All client orders are prioritised ahead of any proprietary transactions.
Outside Business Interests (“OBI”)
A Conflict may arise where an employee maintains an OBI such as a directorship, shareholding or other role which Conflicts with a client’s interests.
Amius manage this Conflict by ensuring that all employees’ OBIs are disclosed and approved by Amius Compliance.
Gifts and Entertainment (“G&E”)
A Conflict may arise where an employee gives or receives a form of G&E which leads them to favour one client over another or for a client to otherwise suffer financial disadvantage.
Amius manage this Conflict by maintaining Anti-Bribery and Corruption Procedures, which include monetary thresholds for prior approval in regards to any G&E given or received.
Inducements
A Conflict may arise where an employee gives or receives fees or any other non-monetary benefit which might impair Amius’ duty to act in the best interest of a client or lead Amius to favour one client over another.
Amius manage this Conflict by maintaining Anti-Bribery and Corruption Procedures (see above) and by disclosing introducing broker fees which Amius pay in relation to a client’s business.
Close Personal Relationships (“CPR”)
A Conflict may arise where an employee maintains a CPR (such as a family relationship with a client or a third party) which could impair Amius’ duty to act in the best interest of a client or lead Amius to favour one client over another.
Amius manage this Conflict by ensuring that all employees disclose CPRs to Amius Compliance. Where necessary, Amius will take steps to segregate an employee from their CPR to ensure clients’ best interests are maintained.
Amius acting as a Manufacturer and Distributor of OTC Structures
A Conflict may arise where Amius has an interest in a financial instrument that is contrary to a client’s.
Amius manage this Conflict by maintaining a Product Governance Framework which prescribes the target market for its manufactured OTC structures and ensures that they are suitable for clients’ objectives and needs.
Governance
Conflicts training is provided to all employees on a regular basis, and they are all required to report any potential Conflicts to Amius Compliance.
Amius Compliance undertakes regular monitoring of PAD; order handling; OBIs; G&E and CPRs. All activities are documented within registers, as are any Conflicts which have been disclosed to clients.
To ensure compliance with regulatory requirements, Amius’ Conflicts Framework is reviewed at least annually.
Disclosing Conflicts
Where Amius cannot ensure with reasonable confidence that the risk of damage to a client arising from a Conflict cannot be prevented, Amius will, as a last resort, disclose the Conflict in accordance with specified disclosure obligations.
[1] Principle 8, The FCA’s Principles of Good Regulation. Chapter 10, Senior Management Arrangements, Systems and Controls
