ACCOUNT_JOB_COMPANY

ACCOUNT_JOB_ADDRESS_SINGLE_LINE

 

Compliance Manual 

 

 

 

 

For Financial Institution

 

 

 

  

Section 1: Introduction

1.1       Purpose and Scope of Compliance Manual

This Manual sets out the major compliance areas and issues which all employees must be familiar with under the relevant legislative or other regulatory requirements.  This Manual does not describe all the requirements in full details.  Employees are recommended to refer to the relevant Laws, Regulations, Codes and Guidelines for details or consult the Compliance Department whenever in doubt.  For the purposes of this Manual, the term “employee” means any of the permanent and temporary employees, consultants, contractors and other staff members assigned or seconded to ACCOUNT_JOB_COMPANY in JURISDICTION_STATE. 

This Manual applies to all activities of the ACCOUNT_JOB_COMPANY.  While the scope of this Manual focuses on laws, rules and regulations in JURISDICTION_STATE, staff should also be reminded to observe any laws, rules and regulations of foreign jurisdictions that may apply to their activities.  These may include, as relevant, laws and regulations applicable to marketing clients in foreign jurisdictions, dealing on overseas markets and the place where a transaction is booked.  

1.2       Core Compliance Principles

1.3       Regulator Code of Conduct

1.4   Compliance is Everyone’s business 

1.4.1  Importance of Compliance

1.4.2  Compliance Structure

1.4.3  Responsibilities of Compliance

1.5   Violation

1.6   Confidentiality and Updating of this Manual

Section 2: Regulatory Framework

2.1       Regulatory Framework

2.2       Supervisory Approach

2.3       Notification Reporting Obligations to Regulator

2.4       Contact by Regulators and the Government 

2.5       Cooperation Regarding Litigation, Investigations and Inquiries

2.6       Outsourcing

2.7       Third Party Consultants and Third Party Agents

Section 3: Licensing and Registration

3.1       Licensing and Registration

3.2       General Licensing Requirements

3.3       Responsible Officer

3.4       Fitness and Propriety

3.5       Licensing Application

3.6       Examination Requirements

3.7       Approval of License Application

3.8       Continuing Obligations

3.8.1    Continuous Professional Training (“CPT”)

3.8.2    Record Keeping

3.8.3    Notification of Changes

3.8.4    Annual Returns and Fees 

3.8.5    Registration of Legal Entity

3.8.6    Temporary Oversea Visitors

3.8.7    Monitoring and Control of Unlicensed Persons Activities

4.1       Key Requirements 

4.1.1    Segregation of Duties

4.1.2    Investment with Mandate

4.1.3    Best Execution

4.1.4    Prohibition on Insider Dealing

4.1.5    Order Allocation

4.1.6    Portfolio Turnover

4.1.7    Underwriting Activities

4.1.8    Participation in Initial Public Offers

4.1.9    Transactions with Connected Persons

4.1.10  Cross Trade

4.1.11  House Accounts

4.1.12  Risk Management

4.1.13  Securities Lending

4.1.14  Liquidity Management

4.1.15  Compliance

4.1.16  Safety of Fund and/or Discretionary Account Assets

4.1.17  Disclosure of Custody Arrangements

4.1.18  Record Keeping

4.1.19  Auditors and Audited Accounts

4.1.20  Side Pockets (Applicable to Fund Management Only)

4.1.21  Net Asset Value Calculation and Pricing (Applicable to Fund Management Only)

4.1.22  Reconciliations

4.1.23  Disclosure of Interests

4.1.24  Delegation of Functions to Third Parties

4.2       Qualifications as a Management Company of an authorised Unit Trust

 

4.3       Qualification of the Firm as a Management Company of an authorised Unit Trust

4.4  Criteria for Acceptability as a Management Company of an authorised Unit Trust

4.5       Valuation and Pricing

4.6       Pricing Errors

4.7       Changes to Dealing

4.8       Suspension and Deferral of Dealings

4.9       Transactions with Connected Persons

4.10     Ongoing Disclosures

4.11     Notices to Holders

4.12     Withdrawal of authorisation

4.13     Merger or Termination 

4.14     Reporting Requirements

4.15     Advertising Materials

4.16     Mention of Regulator authorisation

5.1       Regulator Code of Conduct

5.1.1    Disclosure of Transaction Related Information and Independence

5.1.2    Disclosure of Benefits Applicable to Discretionary Accounts

 

5.2       Regulator Fund Manager Code of Conduct

5.3       Identifying Personal Conflicts of Interest

5.4       Employee Trading

5.5       Private Investment and Outside Activities

5.6       Inside Information and Chinese Walls

 

5.7       The Prevention of Bribery, Entertainment and Gifts

5.7.1    Accepting Gifts

5.7.2    Giving Gifts to Private Parties

5.7.3    Providing Entertainment to Private Parties

5.8       Referral Fees, Finders Fees and Other Compensation Agreement

 

5.9       Cash Rebates and Soft Dollar Commission

5.10     Legal, Tax and Accounting Advice

6.1       Provision of Information

6.2       Client Agreement (Applicable to Discretionary Account Management only)

6.3       Performance Review and Valuation Reports (Applicable to Discretionary Account Management only)

6.4       Safeguarding Client Assets

6.4.1  Client Assets Records

6.4.2  Client Payments

6.4.3  Client Asset Register

6.4.4 Reconciliation

6.4.5   Custody of fund and client assets

6.5       Client Complaints

6.5.1    Definition of Complaint

6.5.2  Subsequent Complaint from the Same Client     

6.5.3    Handling of Client’s Complaints

6.5.4    Record of client's complaints

6.6       Marketing Activities

6.6.1    Representations by the Firm or its Representatives

6.6.2    Issue of Marketing Materials

6.7       Fees and Expenses

6.7.1    Fair and Reasonable Charges

7.1       Use of Mobile Phones

7.2       Rules for Employees in the Workplace

 

7.3       Taking Orders While Outside of the Workplace

7.4       Business Calls with Clients while Outside of the Workplace

7.5       Significant Equity Positions

7.5.1    Major Shareholding

7.5.2    Use of Introducing Brokers and Consultants

7.6       General Requirements to Maintain Timely and Accurate Records

8.1       Insider Dealing

8.2       Other General Prohibited Market Misconduct

8.3       Required Clearances

8.4       Algorithmic Trading

8.5       Consequences

10.1     Introduction

10.2     Regulatory Responsibilities of responsible officers

10.3     Responsibilities of MICs

10.4     Creating a Strong Compliance Culture

10.5     Principles of Effective Supervision

1. Determination of overall operation of fund/discretionary Account

2. Additional Requirements

2.1 Leverage

2.2 Securities Lending

2.3 Liquidity Management

2.4 Termination (Applicable to Fund Management only)

2.5 Safety of Fund and/or Discretionary Account Assets

2.6 Selection and Appointment of Custodian

2.7 Custody Agreement

2.8 Disclosure of Custody Arrangements

2.9 Fund and/or Discretionary Account Portfolio Valuation

2.10 Side Pockets (Applicable to Fund Management Only)

2.11 Net Asset Value Calculation and Pricing (Applicable to Fund Management Only)

2.12 Auditors and Audited Accounts (Applicable to Fund Management Only)

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