Conflicts Disclosure Policy Notice

Summary

FCS Capital Markets Limited (“FCS ”) must conduct its business according to the FCA Principles 6 & 8 in that it must manage conflicts of interest fairly, both between itself and its clients and between one client and another. FCS has a further regulatory obligation to ensure that steps are in place to manage conflicts of interest as set out in the FCA Handbook (SYSC 10).

Objective and Scope

FCS is required to take reasonable steps to identify and adequately manage conflict of interests entailing a material risk of damage to a client’s interest. The policy states the requirement for FCS to have in place appropriate procedures and measures to identify and manage any such material conflict of interest.

Further, FCS must comply with the following FCA Principles:

Principle 1: requires a firm to conduct its business with integrity;

Principle 3: requires FCS to take reasonable care to organise and control its affairs responsibly and effectively;

Principle 6: requires FCS to pay due regard to interests of its customers and treat them fairly, and

Principle 8: requires FCS to manage conflicts of interest fairly, between itself and its customers, and between one customer and another.

Conflicts Disclosure

In compliance with the FCA SYSC 10 requirements to have in place appropriate systems and controls to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interest of its clients, FCS have taken reasonable steps to identify conflicts of interest that exist, or may exist, between the Firm and its clients or between one client and another. We have further reviewed the organisational and administrative arrangements that are in place to manage such conflicts and believe they are sufficient to ensure with reasonable confidence that the risk of damage to clients’ interests will be prevented.

Our Conflicts of Interest Policy sets out the key information that is required by clients to understand the measures taken by FCS to safeguard the interests of its clients. FCS, its employees, consultants and contractors of any sort, (collectively “Staff”) are required to apply this Policy and seek advice as and when required.

Principles 1, 6 & 8 of the FCA Principles for Business (as above), require a firm to “pay due regard to the interests of its clients, treat them fairly and manage any conflicts fairly”. This Policy is a supplement to FCS’s overall general obligation to act with integrity and fairness and manage conflicts fairly both towards and between its clients and its counterparties.

Under the Markets in Financial Instruments Directive (MiFID), investment firms are required to maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to identify, monitor and manage such conflicts of interest.

FCA SYSC 10 requires firms to do the following:

  • identify their conflicts of interest;
  • manage their conflicts of interest;
  • establish and maintain a conflicts policy;
  • disclose their conflicts of interest (where appropriate);
  • keep records of their conflicts of interest

FCS provide a range of services to a number of different clients. As a result, circumstances may arise whereby the interest of the client may conflict with the interests of the Firm, an employee or some other person connected with us, or with those of another client. A conflict of interest may arise even if no improper act or disadvantage to the client arises from it. It is of vital importance that any risk of a conflict of interest is identified and managed appropriately, in compliance with FCA Rules and our wider duties to clients and further to ensure that the integrity of our services is not eroded.

Our Conflicts of Interest Policy is deeply ingrained in our policies and procedures; we are committed to treating our clients fairly and we will never knowingly put ourselves in a position whereby our own interests, or our duty to another party, prevent us from discharging our duty to our clients.

FCS maintains processes, procedures and organisational arrangements to manage possible conflicts of interest which include that all FCS’s Staff:

  • are at all times, bound to act in full compliance with its policies and procedures;
  • are bound by the ‘Gift and Hospitality Policy’ which prevents them from soliciting or accepting any gift or inducement which may influence their independence or create a conflict with the duty owed to FCS or its clients;
  • are bound by our Data Protection Policy and access to confidential information is only permitted if essential for performing their job function;
  • receive guidance and instructions regarding managing conflicts of interest;
  • are bound by the Personal Account Dealing Policy and transactions undertaken by all employees are actively monitored;
  • are required to seek prior consent by senior management before engaging in other external business interests.

If the measures in place are not sufficient to avoid or manage a conflict of interest relating to a client, FCS will disclose the conflict of interest before undertaking further business with the client.

FCS is therefore committed to identifying, monitoring and managing all actual and potential conflicts of interest that may arise in relation to its business.