Conflicts policy – Introduction
As a financial institution Hantec Markets Limited (hereafter “Hantec Markets”) faces actual and potential conflicts of interest from time to time. By identifying the existing and potential conflicts of interest, Hantec Markets endorses all reasonable steps to establish, implement and maintain an effective conflicts of interest policy to prevent any risk that may damage the interests of our customers.
This statement discloses the conflicts of interest you, as an existing or potential customer or might face when engaging in business dealings with Hantec Markets; the laws and regulations subject to conflicts of interest that Hantec Markets is required to comply with; and the policy Hantec Markets adopts for the aim of preventing and managing the conflicts of interest.
Identification and Examples of Conflicts that might arise
In general, conflicts of interest may be caused by the superior knowledge of employees and the variety of products on offer and may arise between a firm and a customer, or between a customer and another customer.
When a firm provides service to a customer, conflicts of interest may arise in one or more of the following situations when a firm or a relevant person:
- is likely to make a financial gain, or avoid a financial loss, at the expense of the customer
- has an interest in the outcome of a service provided to or a transaction carried out on behalf of the customer, which is different from the customer’s interest in that outcome;
- has a financial or other incentive to favour the interest of another customer(s) over the interests of the customer;
- carries on the same business as the customer; or
- receives or will receive from a person other than the customer an inducement, other than standard commission or fee in relation to a service provided to the customer .
In respect to Hantec Markets, the following is the main conflict of interest that may occur when providing services to our customers;
You may have been introduced to us by a third party who receive remuneration from your trades.
Laws and Regulations
The FCA recognises that conflicts of interest exist in financial services industry and does not aim to eliminate them. Nevertheless, Principle 8 of the FCA’s Principles for Business (PRIN) sets out that a firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another customer. Furthermore, the Senior Management Arrangements, Systems and Controls (SYSC) of the FCA handbook, in particular the SYSC 10, firms are required to manage the conflicts so that they do not damage the customers’ interest.
Hantec Markets Policy
As required by law, Hantec Markets implements and maintains an effective conflicts of interest policy for the aim of preventing conflicts of interest or potential conflicts of interest from causing a material risk of damage to the interests of customers.
Hantec Markets keeps records of our business activities so that we can identify any conflict that might arise that would have a material risk of damage to the interests of our customers. Hantec Markets’ conflicts of interest policy adopts procedures and measures to manage and control the conflicts of interest identified, including segregation of duties and responsibilities; separate supervision of relevant persons; Personal Account Trading policy, Gifts and Inducement policy, prevention and control of the exchange of information; acting on the best interest of the customers; and in some cases declining to act for a customer or potential customer.
Whilst Hantec Markets is devoted to implement and maintain our conflicts of interest policy, in some cases, such policy might not be sufficient to prevent risks of damage to the interest of a customer. In such a case, Hantec Markets shall disclose the general nature and sources of conflicts of interest to the customer so that enables the customer to make an informed decision whether to proceed with the transaction in question.
Hantec Markets is devoted to provide more services and products to meet our customers’ demand. At the same time, Hantec Markets frequently reviews and assesses our conflicts of interest policy so that can ensure the adequacy of such policy in compliance of the FCA rules.