Conflicts of Interest Policy

1) Purpose and Scope

The purpose of this Conflicts of Interest Policy is to outline a suitable approach and response to the identification and management of conflicts of interest. Finsai Trade is an authorized Financial Services Provider and thus governed by the International Services Authority of Mauritius.

2) Definitions

“Conflicts of Interest”Any circumstance described in “Explaining Conflicts of Interest” below.

“FSP” or “Name of Company” FINSAI TRADE LTD. is a Financial Services Provider authorized in terms of the International Services Authority of Mauritius.

“Responsible Person” A key individual, representative or employee of a Product Supplier or FSP.

“Financial Interest” A financial interest includes cash, cash equivalent, voucher, gift, services, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, or other incentive, or valuable consideration other than (a) an ownership interest; (b) training by a product supplier on products, general industry information and technical systems, that is not exclusively available to a selected group of providers or representatives except for travel and accommodation associated with that training.

“Ownership Interest” (a) an equity ownership interest, for which fair value was paid by the owner, other than equity or ownership interest held by an approved nominee on behalf of another person; and (b) includes any dividend, profit share or similar benefit derived from that equity or ownership interest.

“Immaterial Financial Interest” Any financial interest with a determinable monetary value, the aggregate of which does not exceed KMF 1000 in any calendar year from the same third party in that calendar year received by a provider, who for its benefit or that or some or all of its representatives, aggregates the immaterial financial interest paid to its representatives.

“Third Party” (a) a product supplier; (b) another FSP; (c) an associate of a product supplier or a FSP; (d) a distribution channel; (e) any person who in terms of an agreement or arrangement with a person referred to in paragraphs (a) to (d) above provides a financial interest to a provider or its representatives.

“Distribution Channel” (a) any arrangement between a product supplier or any of its associates and one or more providers or any of its associates in terms of which arrangement, any support or service is provided to the provider or providers in rendering a financial service to a client; (b) any arrangement between two or more providers or any of their associates, which arrangement facilitates, supports or enhances a relationship between the provider or providers and a product supplier; (c) any arrangement between two or more product suppliers or any of their associates, which arrangement facilitates, supports or enhances a relationship between a provider or providers and a product supplier.

Explaining Conflicts of Interest

A “conflict of interest” involves the actual, apparent or potential abuse of the trust that people have in professionals. The simplest working definition states: a conflict of interest is a situation in which financial or other personal considerations have the potential to compromise or bias professional judgment and objectivity. An apparent conflict of interest is one in which a reasonable person would think that the professional's judgment is likely to be compromised. A potential conflict of interest involves a situation that may develop into an actual conflict of interest. It is important to note that a conflict of interest exists whether or not decisions are affected by a personal interest. A conflict of interest implies only the potential for bias, not the likelihood.

Conflicts of interest can be described as circumstances where some or all of the interests of clients to whom a financial services provider or product supplier provides financial services or products, are inconsistent with, or diverge from, some or all of the interests of the FSP, its representatives or the product supplier.

It should be understood that the conflicting interest referred to throughout this policy may be direct or indirect (the interest might be that of the Responsible Person, that of another person such as a relative or friend of the Responsible Person, or that of an organization in which the Responsible Person or such other person has an interest).

It is not possible to list all situations which could constitute a conflict. The facts of each situation will determine whether the interest in question is such as to bring it within the area of potential conflict.

3) Procedures for management of conflicts of interest

To adequately manage conflicts of interest, Finsai Trade shall identify all relevant conflicts timeously. Finsai Trade will employ two different mechanisms to ensure that all conflicts are identified:

Finsai Trade shall maintain a register of identified conflicts of interest. The register will be compiled in conjunction with the board of Finsai Trade and updated with all new conflicts as soon as they are identified. The register is reviewed on an annual basis for completeness. The register identifies the conflict, the severity of the conflict and documented controls to mitigate the conflict.

All employees, including compliance officers and management, are responsible for identifying specific instances of conflict and are required to notify their business unit manager or compliance officer of any conflicts they become aware of. The business unit manager will escalate the conflict to the compliance officer, who will assess the implications of the conflict and how the conflict should be managed in conjunction with the board.

4) Mitigating Controls

Finsai Trade has various internal policies and controls in place to manage and mitigate possible conflicts of interest, including that a Provider or a Representative will, in writing, at the earliest reasonable opportunity disclose to a client any conflicts of interest in respect of that client.

The disclosure must include:

• Measures taken, in accordance with the conflicts of interest management policy, to avoid or mitigate the conflict;
• Any ownership interest or financial interest, other than an immaterial financial interest, that the provider or the representative may become eligible for;
• An explanation of the nature of any relationship or arrangement with a third party that gives rise to a conflict of interest, in sufficient detail to enable a client to understand the exact nature of the relationship or arrangement and the conflicts of interest.

And:

1. A Provider or Representative must inform a client of the conflicts of interest management policy and how it may be accessed.
2. Register of “Associates” of Finsai Trade as defined in Definitions (Appendix A).
3. Register of Conflicts of Interest open for viewing on request. The register identifies all conflicts as well as the mitigation controls put in place to manage the conflict. The register is updated when a conflict becomes apparent but reviewed at least on an annual basis (Appendix B).
4. Register of Personal Interest, documenting the business interests of a Responsible Person to the extent that such business interest might cause an actual or perceived conflict of interest (Appendix C).
5. Register of Gifts Received, documenting all financial interests and immaterial financial interests offered to or received by a Responsible Person (Appendix D).
6. Comprehensive Training on the Conflicts of Interest Policy must be provided to Key Individuals and Representatives.
7. All employees and representatives are required to read this policy and sign a statement to the effect that they have read and fully understand the provisions of the document and the application thereof.
8. Internal compliance will on an ad-hoc basis check on financial records to ensure the policy is being complied with, specifically checking the accuracy of the Gift Register.
9. Non-compliance will be subject to disciplinary procedures in terms of FAIS and employment conditions and can ultimately result in debarment or dismissal as applicable.
10. Avoidance, limitation or circumvention of this policy will be deemed non-compliance.
11. The external compliance officer will include monitoring of the Conflicts of Interest Policy as part of the general monitoring duties and will report thereon in the annual compliance report to the FSB.