Conflict of Interest Policy
Kanak Capital Markets (hereafter referred to as the “Company”) is a company incorporated and registered under the Laws of St. Vincent and the Grenadines under company number 1810 LLC 2022.
A “conflict of interest” occurs when the Company or one of its employees or other associates has competing professional or personal interests/benefits that may prevent services from being provided to clients in an independent or impartial manner.
Our Conflict-of-Interest Policy states:
- The Company will identify circumstances that may give rise to conflicts of interest that pose a material risk or damage to our Clients’ interests;
- The Company has established appropriate mechanisms and systems to manage those conflicts; and
- The Company maintains systems designed to prevent damage to our Clients’ interests as a result of identified conflicts
SCOPE OF THE POLICY
The conflict-of-interest policy aims to ensure that the Company’s clients are treated fairly and with the utmost integrity, and that their interests are always protected. The policy’s goal is to identify and prevent conflicts of interest that may arise between:
The Company and a Client;
- A Relevant Person and a Client;
- Two or more Clients of the Company in the course of providing services to these
- A Company service provider and a Client; and
- A Company service provider and a Client.
The policy applies to all the Company’s directors, employees, and anyone else who is directly or indirectly related to the Company (hereinafter referred to as “relevant persons”).
IDENTIFICATION OF CONFLICTS OF INTEREST (TYPES OF CONFLICTS)
The Company considers whether the Company or a relevant person is in any of the following situations, whether because of providing investment or ancillary services or investment activities or otherwise, 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 harm the interests of a Client:
- 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 a transaction carried out on the Client’s behalf that is distinct from the Client’s interest in that outcome;
- The Company or a relevant person conducts 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 the form of monies, goods, or services in relation to a service provided to the Client, other than the standard commission or fee for that service.
CONTROL OF CONFLICTS OF INTEREST
To avoid conflicts of interest, the Company has implemented the following procedures. The procedures are constantly monitored and reviewed to implement corrective measures if any flaws are discovered.
In general, the procedures to be followed and measures to be taken to manage such conflicts in order to maintain the required level of independence include the following:
- Effective procedures for preventing or controlling the exchange of information between relevant persons engaged in activities that may result in a conflict of interest, where the exchange of that information may jeopardize the interests of one or more clients.
- Separate supervision of relevant persons whose primary responsibilities include carrying out activities on behalf of or providing services to clients whose interests may conflict, or who otherwise represent different interests, including those of the
- The elimination 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 exist.
- Measures to prevent or limit any person from wielding undue influence over the way a relevant person performs investment or ancillary services or activities.
- Measures to prevent or control a relevant person’s concurrent or sequential involvement in separate investment or ancillary services or activities where such involvement may impair proper conflict management.
More specifically, some of the procedures already established are as follows:
- Company employees must follow all rules, regulations, and directives issued by competent authorities, as well as the company’s code of ethics.
- Separation of duties that, if performed by the same person, may result in conflicts of interest.
- Gifts and inducements log, which records the solicitation, offer, or receipt of specific benefits.
- Company employees are strictly prohibited from trading for themselves on company’s platform or any other platform, whether directly or through an intermediary/related party, unless they obtain prior approval from management and their accounts are
clearly labelled as employee accounts.
- Company employees must report any potential conflict of interest related to a proposed transaction to their supervisor.
- Company employees must report to their supervisor any special relationship they or any related party may have with a proposed transaction that may influence their decision-making.
- Company employees must consider commission rates as well as the ability to remain anonymous while minimizing market impact.
- Employees of the company must not trade on material non-public information. If an employee has material non-public information, he must report it to his supervisor or the compliance officer, and the financial instrument will be placed on the restricted or watch lists.
- The compliance officer documents and responds quickly to any compliance violations, taking appropriate disciplinary action on their own authority, independent of management as needed. If the compliance officer is unable to resolve any violations on his own, he should seek help from senior management, the Board of Directors, or outside counsel as needed. On a regular basis, the compliance officer should report violations and other issues related to the procedures to the Board of Directors or the supervisor.
- Physical division of departments. Information barriers will be put in place to prevent the communication of material information and other sensitive information in order to control the flow of such information.
- Procedures governing electronic data access. Material information will be restricted to those who need to know it in order to carry out their responsibilities
CONFLICTS OF INTEREST DISCLOSURE
If the Company’s arrangements/measures in place during the course of a business relationship with a Client or group of Clients are insufficient to avoid or manage a conflict of interest relating to that Client or group of Clients, the Company will disclose the conflict of interest before doing further business with the Client or group of Clients.
If we discover an actual or potential conflict of interest, we will notify you in writing so that you can make an informed decision about whether or not to proceed.
CONFLICTS OF INTEREST RECORDING
Kanak Capital Markets will keep and maintain a record of any circumstances in which a conflict of interest may or has arisen because of the Company’s activities
This policy is made available to all of our employees in order to highlight and emphasize the importance of identifying and managing conflicts of interest
ACT OF DECLINE
Company may decline to represent a Client if the Company believes that a conflict of interest cannot be managed in any other way
MODIFICATION OF THE POLICY AND ADDITIONAL INFORMATION
The Company’s policy is reviewed on a regular and at least annual basis; however, the Company reserves the right to review and/or amend its Policy and arrangements whenever it deems it appropriate and without notice to the Client If you require any additional information or have any questions about conflicts of interest, please contact our Compliance Department at firstname.lastname@example.org