The Markets in Financial Instruments Directive ('MiFlD') became effective on 1 November 2007. This policy adopted by SG Hambros Bank Limited (“SGH”) responds to the MiFID requirements.
We categorise all our clients Retail Clients in respect of all the investment services we provide under MiFlD and accord them the relevant protections associated with this categorisation. SGH has always endeavoured to provide their clients with best execution services and the regulatory obligations introduced by MiFID are fully consistent with our existing commercial practice. It is also recommended that the SGH entities located outside the EU follow this policy as “best practice” to the extent that this is practical.
When executing orders on your behalf in relation to financial instruments, we will take all reasonable steps to achieve what is called “best execution” of your orders. This means that we will have in place a policy and procedures which are designed to obtain the best possible execution result, subject to and taking into account the nature of your orders, the priorities you place upon us in filling those orders and the market in question and which provides, in our view, the best balance across a range of sometimes conflicting factors. This policy applies, subject to market conditions, when SGH:
SGH is seen as executing orders "on a client’s behalf" where the client legitimately relies on SGH to protect his or her interests in relation to pricing or other aspects of the transaction that may be affected by how SGH executes the order. This includes, but it is not limited to, execution of orders undertaken by SGH under its discretionary mandates to manage client portfolios. Other examples of executing orders "on a client’s behalf" are execution of orders by dealing as agent, execution of orders dealing as risk-less principal, or working orders given by clients.
We will take into consideration a range of different factors which include not just price, but which may also include such other factors as the cost of the transaction, the need for timely execution, the liquidity of the market (which may make it difficult to even execute an order), the size of the order and the nature of the financial transaction including whether it is executed on a regulated market or over the counter.
We will also take into account your understanding and experience of the market in question, your dealing profile, the nature of the dealing service you require of us and the specific and general instructions given to us by you which may prioritise how we are to fill your orders.
In the absence of express instructions from you, we will exercise our own discretion in determining the factors that we need to take into account for the purpose of providing you with “best execution”.
Our commitment to provide you with “best execution” does not mean that we owe you any fiduciary responsibilities over and above the specific regulatory obligations placed upon us or as may be otherwise contracted between us.
We have set out in Part Three below information on the criteria which determines how we select the different venues on which we may execute your order and have identified those venues on which we will most regularly seek to execute your orders and which we believe offer the best prospects for affording you best execution. We will also assess, on a regular basis, the quality of execution afforded by those venues on which we execute your orders and whether we need to change our execution arrangements.
In selecting the most appropriate venues for the purpose of executing your orders, we will take into full account the factors relevant to the order, including those identified in Part One above;
(a) what we reasonably assess to be your best interests in terms of executing your orders; and
(b) such other factors as may be appropriate, including the ability of the venue to manage complex orders, the speed of execution, the credit worthiness of the venue and the quality of any related clearing and settlement facilities.
As a Retail Client, we will also provide you with additional details in Part Three regarding:
Whilst we will take all reasonable steps to satisfy ourselves that we have processes in place that can reasonably be expected to lead to the delivery of best execution of your orders, there may be circumstances including system failure where we cannot guarantee best execution of every order executed on your behalf.
Our policy, in providing you with best execution, is, so far as possible and subject to the processes set out in Part 3, to exercise the same standards and operate the same processes across all the different markets and financial instruments on which we execute your orders. However, the diversity in those markets and instruments and the kind of orders that you may place with us mean that different factors will have to be taken into account when we assess the nature of our execution policy in the context of different instruments and different markets. For example, there is no formalised market or settlement infrastructure for over the counter transactions. In some markets, price Volatility may mean that the timeliness of execution is a priority, whereas, in other markets that have low liquidity, the fact of execution may itself constitute best execution. In other cases, our choice of venue may be limited (even to the fact that there may only be one platform/market upon which we can execute your orders) because of the nature of your order or of your requirements.
Subject to any specific instructions that may be given by client, when executing orders we will take all reasonable steps to obtain the best possible result for clients taking into account the Execution Factors listed below. We will determine the relative importance of the Execution Factors by using our commercial judgement and experience in light of market information available and taking into account the Execution Criteria.
The Execution Factors that will be taken into account are: price; cost; speed; likelihood of execution and settlement; size; or any other consideration relevant to the execution of the order. Price will have normally a higher relative importance in obtaining the best possible result. However, in some circumstances, for some clients, financial instruments or markets, we may appropriately determine that other Execution Factors are more important than price in obtaining the best possible execution.
The Execution Criteria that will be taken into account are the characteristics of the:
Eligible for inclusion on the list of Execution Venues are the following venue types:
A list of the Execution Venues used by us can be found on our website www.privatebanking.societegenerale.com/hambros . This list of Execution Venues is not exhaustive but comprises those Execution Venues on which we place significant reliance. We reserve the right to use other Execution Venues deemed appropriate in accordance with our MiFID order execution policy and may add or remove any Execution Venues from this list. We will regularly assess the Execution Venues available in respect of any products that we trade to identify those that will enable us on a consistent basis, to obtain the best possible result when executing orders. The list of Execution Venues will then be updated, where necessary, following such assessment. We are not required to notify separately our clients of any changes to these venues.
Subject to any specific instructions that may be given by clients, we will use the following methodology in order to select an Execution Venue for an order:
In all cases, we will consider all sources of reasonably available information, including MTFs, local exchanges, brokers and data vendors to obtain the best possible result for the order.
Subject to any specific instructions that may be given by the client we will execute an Order by one of the following methods or combination of methods:
When clients give us a specific instruction as to the execution of an order we will execute the order in accordance with those specific instructions. When instructions relate to only part of the order, we will continue to apply our MiFID order execution policy to those aspects of the order not covered by specific instructions.
Clients should be aware that providing specific instructions to us in relation to the execution of a particular order may prevent us from taking the steps set out in our MiFID order execution policy to obtain the best possible result with respect of the elements covered by those instructions.
Subject to any specific instructions that may be given by the client, we may transmit for execution an order received from a client to one of our Execution Venue, either an SG Group entity or an external entity, such as a third-party broker. In doing so, we must act in the client’s best interest and also comply with all aspects of this policy.
Compliance with this MiFID order execution policy will be monitored by SGH on an ongoing basis.
SGH will review its MiFID order execution annually and clients will be notified of material changes. Also, whenever a material change occurs that affects our ability to obtain the best possible execution, clients will be accordingly notified. We will also update the list Execution Venues when necessary. Clients will not be notified separately of changes to these venues, but a list will be made available on request.
Clients will be deemed to have given consent to our execution policy when they give us orders after 1 November 2007. Discretionary portfolio clients are deemed to have given consent to our execution policy if their investment management agreements are still in place after 1 November 2007.
Financial Instruments – include, but are not limited to:
MiFID - means the Directive 2004/39/EC of the European Parliament and the Council of 21 April 2004 on Markets in Financial Instruments and any implementing directives and regulations.
Multilateral Trading Facility (MTF) - means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in Financial Instruments in a way that results in a contract in accordance with the provisions of MiFID.
Order - means an instruction to buy or sell a Financial Instrument which is accepted by SGH for execution or transmission to a third party.
Regulated Market - means a multilateral system operated and/or managed by a market operator which brings together or facilitates the bringing together of multiple third-party buying and selling interests in Financial Instruments - in accordance with its nondiscretionary rules - in a way that results in a contract, in respect of the Financial instruments admitted to trading under its rules. - - means an instruction to buy or sell a Financial Instrument which is accepted by SGH for execution or transmission to a third party. - means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in Financial Instruments in a way that results in a contract in accordance with the provisions of MiF
• It is not permissible for the Bank to aggregate a client order with an own account order, or with an order from an eligible counterparty, or with another client order, unless:
1. it is likely that the aggregation will not work to the disadvantage of each of the clients concerned; and
2. we have disclosed either orally or in writing to each client concerned, either specifically or in the terms of business, that the effect of aggregation may work on some occasions to its disadvantage
• Clause 28 ‘Aggregation of orders’ in the Terms of Business meets the disclosure requirements in 2 above.
• Given that the Bank is not a proprietary trader, the only likely aggregation of a client order with an own account order would be in the event of an error arising and the correction thereof. In such a situation the client will be given an execution which is at least as good as that he would have obtained should his order have been executed correctly.
• Where orders have been aggregated and part or all of the aggregated order has been executed the allocation of fills should be made promptly (and in any event, by the close of business the same day). If, for any reason, we are not able to allocate the fills concerned promptly, the reason for the delay will be fully documented and recorded by the person responsible for making the allocation.
• Where an aggregated order is executed, in the subsequent allocation procedure unfair preference will not be given to own account orders or to any of those for whom we have dealt; and where a client order and an own account order have been aggregated, priority will be given to satisfying the client order if the aggregate total of all orders cannot be satisfied, unless we can demonstrate on reasonable grounds that without our participation we would not have been able to execute those orders on such favourable terms, or at all.
• A revised allocation may be made in respect of an aggregated order where an error is identified in either the intended basis of allocation or the actual allocation; in such a situation a record of the reason for and basis of the reallocation will be made and recorded in the error log and the re-allocation completed within 1 business day of the error being identified. A revised allocation may also be made where an order is only partially executed resulting in an uneconomic allocation to some clients; in such a case we will take reasonable steps to ensure that a re-allocation is in the best interests of the clients for whom we have dealt.
• Where an aggregated order has been executed which includes one or more client orders a record will be retained of the identity of each client concerned and whether the transaction is to be transacted in whole or in part for a managed account, and if in part, the relevant proportions. In addition a record will be made of the intended allocation as soon as is practicable (where an own account order is aggregated with an order for one or more clients, a record of the intended basis of allocation will be made before the transaction is executed).
• When allocating an aggregated transaction which includes one or more client orders a record will also be made of the date and time of allocation, the relevant product, the identity of each client and eligible counterparty concerned, and the amount allocated to each respective client, eligible counterparty and to the Bank.
• When allocating an aggregated transaction which includes one or more client orders, the Bank will allocate the order on a pro-rata basis. Thus giving the fairest possible outcome in regard to the prices involved in order to ensure best execution in line with the Bank’s best execution policy.
• Where there is a minimum tradeable size and we have not been able to fulfil the entire order, allocation will be made based on multiples of this amount. Where this is inconsistent with allocating to all relevant clients on a pro rata basis, the next most equitable allocation will be applied. This may include allocating a minimum size to each client with the remainder allocated on a pro rata basis. If there is insufficient to allocate to all clients, the time and date of orders may be considered.
• Any records made in respect any aggregated order will be retained for a period of at least 5 years from the date of allocation or subsequent reallocation.
-means the Directive 2004/39/EC of the European Parliament and the Council of 21 April 2004 on Markets in Financial Instruments and any implementing directives and regulations.Multilateral Trading Facility (MTF) - means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in Financial Instruments in a way that results in a contract in accordance with the provisions of MiFID.Order - means an instruction to buy or sell a Financial Instrument which is accepted by SGH for execution or transmission to a third party.Regulated Market - means a multilateral system operated and/or managed by a market operator which brings together or facilitates the bringing together of multiple third-party buying and selling interests in Financial Instruments - in accordance with its nondiscretionary rules - in a way that results in a contract, in respect of the Financial instruments admitted to trading under its rules.
Before using this website you should read the following terms and conditions which govern your use of this website.
By accessing this website you agree to be bound by our terms and conditions as set out below
These terms and conditions set out the basis for the use of the SGPB Hambros website (www.privatebanking.societegenerale.com/hambros.com). These terms shall be governed by and construed in accordance with English Law.
We may, at our discretion, provide you with services including, but not restricted to, news and information services. You agree to comply with the conditions imposed on your use of the services, as set out in these terms and conditions and elsewhere in our website. These services may be outside our control, or provided by a third party, in which case, we do not accept responsibility for their content, or for any delays, interruptions or errors in the provision of these additional services.
We reserve the absolute right to terminate, withdraw, restrict, vary, extend or re-introduce any or all of the services and update, alter, suspend or discontinue, any aspect of our website including access to it, without notice at any time and for any reason and with no liability on our part.
Unless otherwise stated, all copyright and other intellectual property rights in documents, graphics and other materials on this website (collectively 'Materials') are owned by SG Hambros Bank Limited ("SGHBL").
No Materials or other text or part of this website may be reproduced or stored in any other website or included in any public or private electronic retrieval system or service without the prior written consent of SGHBL, such consent to be granted in SGHBL's absolute discretion and may be subject to the payment of a royalty to SGHBL. You may not copy, distribute or redistribute the data, including by caching, framing or similar means or sell, resell, re-transmit or otherwise make the data retrieved from our website available in any manner to any third party. Any rights not expressly granted in these terms are reserved.
Whilst SGHBL endeavours to ensure that the information in any Materials on this website is correct and up to date, SGHBL gives no warranty, express or implied as to its accuracy or that it is up to date including any implied warranties of merchantability, satisfactory quality, fitness for particular purpose, originality, accuracy, completeness and non infringement.
SGHBL does not accept any liability for error or omission. SGHBL shall only be liable for damages for death or personal injury but shall not be liable for any other damages (including damages for consequential loss or loss of profits) arising in contract, tort or otherwise deriving directly or indirectly from the use, misuse or inoperability of this website, or any Materials contained therein. The Materials do not constitute financial or other professional advice and should not be relied upon. In addition, SGHBL accepts no responsibility for the content of any website to which a hypertext link from this website exists. Any links are provided on an 'as is' basis with no warranty, express or implied, for the information provided within them. The information on our website is provided solely to enable investors to make their own investment decisions and does not constitute a recommendation to buy, sell or otherwise deal in investments by us.
We do not make any warranties, express or implied that the information or services provided through our website ("Information" or "Services") or the availability of the Information or Services in any particular jurisdiction outside the UK is in compliance with any applicable local laws or regulations. Accordingly, if it is prohibited to make the Information or Services or any part thereof available in your jurisdiction or to you (by reason of nationality, residence or otherwise) such Information or the Services or any part thereof are not directed at you. You accept that if you are resident outside the UK, you must satisfy yourself that you are lawfully able to receive the Information and Services through us in the country in which you are accessing our website. We accept no liability for any cost, losses or damages resulting from or related to the availability or content of any Information or Services to persons in jurisdictions outside the UK or to persons who are, or who are nominees of or trustees for, citizens, residents or nationals of other countries. Neither the Information nor our Services or any part of our website constitutes an offer or solicitation to sell investments in any jurisdiction.
The rules and regulations for the protection of investors and/or depositors under the UK Financial Services and Markets Act 2000 do not apply to business conducted at or from offices located outside the UK and investors and/or depositors conducting business through the offshore offices will not be able to benefit from the services of the Financial Ombudsman Service or the provisions of the Financial Services Compensation Scheme. SG Hambros Bank (Channel Islands) Limited, Guernsey Branch is a participant in the Guernsey Banking Deposit Compensation Scheme; details are available from our office on request.
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THE LAWS RELATING TO TAX CAN CHANGE AND SUCH CHANGES CANNOT BE FORESEEN. THE VALUE OF ANY TAX BENEFITS WILL DEPEND ON INDIVIDUAL CIRCUMSTANCES. YOU SHOULD CONSULT YOUR OWN TAX ADVISOR IN ORDER TO UNDERSTAND ANY APPLICABLE TAX CONSEQUENCES.
THE PRODUCTS AND SERVICES DESCRIBED IN THIS WEBSITE ARE NOT AVAILABLE TO US RESIDENTS AND MAY NOT BE AVAILABLE TO PERSONS IN CERTAIN OTHER GEOGRAPHICAL LOCATIONS. IT IS SGHBL'S POLICY NOT TO KNOWINGLY PROVIDE THE SERVICES DESCRIBED HEREIN TO ANY PERSON IF THE PROVISION OF SUCH SERVICES WOULD BE IN VIOLATION OF LAW OF SUCH PERSON'S COUNTRY OF RESIDENCE. THE READER OF THIS MESSAGE IS RESPONSIBLE FOR SATISFYING HIM OR HERSELF THAT THEY ARE ENTITLED TO OBTAIN ACCESS TO THIS WEBSITE UNDER THEIR LOCAL LAW.
It is possible that the law will change or that commercial pressures will dictate that we should enter into an agreement with a Trust Service Provider (TSP), Trusted Third Party (TTB) or Key Escrow Agent who will maintain a record of any encryption key which could be used under certain circumstances of law enforcement agencies to decode messages sent between us. You agree that you have no objection to us entering into such an agreement. Although we use encrypted technology, we do not Warrant the security of any communications between us via the Internet.
You agree to the following terms with respect to your use of electronic communications:
The website has been produced by SG Hambros Bank Limited. SGPB Hambros is part of SGPB Hambros Goup and Société Générale Private Banking, the private banking arm of the Société Générale Group. SG is the name of Société Générale Group's international businesses. Société Générale is authorised by the Banque de France and by the Financial Services Authority and is regulated by the Financial Services Authority for the conduct of UK business.
Rules and regulations made for the protection of investors and/or depositors under the UK Financial Services and Markets Act 2000 will not apply to business conducted at or from offices located outside the UK and investors and/or depositors will not be able to benefit from the provisions of the Financial Services Compensation Scheme.
SG Hambros Bank Limited ("SGPB Hambros")
SG Hambros is registered in England and Wales under number 964058. The company's registered office and principal place of business is at Norfolk House, 31 St James's Square, London SW1Y 4JR. SGPB Hambros is authorised and regulated by the Financial Services Authority.
SG Hambros Trust Company Limited ("SGH Trust")
SG Hambros is registered in England and Wales under number 328136. The company's registered office and principal place of business is at Norfolk House, 31 St James's Square, London SW1Y 4JR.. SGH Trust is authorised and regulated by the Financial Services Authority.
SG Hambros Bank & Trust (Bahamas) Limited ("SGH Bahamas")
SGH Bahamas is incorporated under the laws of the Commonwealth of the Bahamas with number 385. The company's registered office and principal place of business is at SG Hambros Building, West Bay Street, Nassau, Bahamas.SGH Bahamas is licensed under the Banks Companies Regulation Act. The company's principal activities include banking, investment advisory services, trust and company administration and fund management. The paid-up capital and reserves of SGH Bahamas exceeded US$25 million as at 31 December 2005. Whilst the company's financial statements are not a matter of public record, copies of the most recent audited financial statements are available on request.
SGH Bahamas is a member of the Bahamas Deposit Insurance Fund ("the Fund") which was established by the Protection of Depositors Act 1999. The Fund is managed by the Board of Management of the Deposit Insurance Corporation and that corporation insures each deposit held by a member institution which is payable in the Bahamas in Bahamian currency. Deposit insurance is limited to Bahamian $50,000 or such greater amounts as the Bahamian Minister of Finance may by order prescribe on the advice of the Central Bank of the Bahamas. Deposit insurance is limited to Bahamian dollar denominated deposits.
SG Hambros Bank (Channel Islands) Limited ("SGH CI")
SGH CI is registered in Jersey under number 2693. The company's registered office and principal place of business is at SG Hambros House, PO Box 78, 18 Esplanade, St Helier, Jersey, Channel Islands, JE4 8PR. The Guernsey Branch of SGH CI has its principal place of business at Hambro House, St Julian's Avenue, St Peter Port, Guernsey, GY1 3AE.
SGH CI is regulated for banking and investment business by the Jersey Financial Services Commission. The Guernsey branch of SGH CI is regulated for banking and investment business by the Guernsey Financial Services Commission and the Jersey Financial Services Commission.
The paid-up capital and reserves of SGH CI exceeded £133 million as at 31 December 2005. Copies of the most recent audited summary financial statements are available on request. SG Hambros Bank (Channel Islands) Limited, Guernsey Branch is a participant in the Guernsey Banking Deposit Compensation Scheme; details are available from our office on request.
SG Hambros Trust Company (Channel Islands) Limited ("SGH Trust CI")
SGH Trust CI is registered in Jersey under number 4345. The company's registered office and principal place of business is at SG Hambros House, PO Box 197, 18 Esplanade, St Helier, Jersey, Channel Islands, JE4 8RT. The Guernsey Branch of SGH Trust CI has its principal place of business at PO Box 86, Hambro House, St Julian's Avenue, St Peter Port, Guernsey, GY1 3ED.
SGH Trust CI is regulated in the conduct of trust company business by the Jersey Financial Services Commission. The Guernsey branch of SGH Trust CI is regulated in the conduct of trust company business by the Guernsey Financial Services Commission and the Jersey Financial Services Commission.There are no investor or depositor compensation schemes in place in Guernsey or Jersey.SG Hambros Bank (Gibraltar) Limited ("SGH Gibraltar")
SG Hambros Bank (Gibraltar) Limited ("SGH Gibraltar")
SGH Gibraltar is registered in Gibraltar under number 1294. The company's registered office is at 32 Line Wall Road, Gibraltar. The company's principal place of business is at Hambro House, 32 Line Wall Road, Gibraltar.SGH Gibraltar is regulated by the Gibraltar Financial Services Commission. The paid-up capital and reserves of SGH Gibraltar exceeded £12 million as at 31 December 2005. Copies of the most recent audited financial statements are available on request.
SGH Gibraltar is a participant in the Gibraltar Deposit Guarantee Scheme ("the Scheme") established under the Deposit Guarantee Scheme Ordinance 1997 ("the Ordinance"). Payments under the Scheme are limited to 90% of a depositor's total deposits which qualify for compensation under the Ordinance subject to a maximum payment to any one depositor of £18,000 (or €20,000 if greater). Further details of the Scheme are available on request or can be found at www.gdgb.gi The Scheme does not apply to fiduciary deposits.
SG Hambros Bank Limited is committed to complying with the requirements of The Banking Code. This Code is a voluntary code, setting out the standards of good banking practice to be followed by banks, building societies and card issuers in their relations with personal and small business customers in the United Kingdom. SG Hambros Bank Limited is also covered by the Financial Ombudsman Service.
For details of charges which may apply to your account please contact your private banker or alternatively contact us via the 'Contact Us' section of this website. If you would like a copy of The Banking Code, please call The Code Compliance Officer on 020 7597 3031 and we will be happy to send one to you. The Codes are also available on-line at: www.bankingcode.org.uk.
The nature of the financial services market is such that conflicts of interest can sometimes arise. When we provide advice, make recommendations, arrange transactions or deal on your behalf, we or some other entity associated or connected with us may have an interest, relationship or arrangement that is material in relation to the investment, transaction or service concerned. We endeavour to ensure that no conflict arises but where it does we will seek to manage the conflict fairly and always act in the best interests of the client.
If conflicts are not properly identified and managed it could lead to a loss of revenue, damage to our reputation, legal action, public censure or a fine from FSA against both the firm and relevant employees.
This policy applies to SG Hambros Bank Limited and SG Hambros Trust Company Limited and all subsidiary companies. Unless otherwise indicated within the Policy, references to the bank or the firm refer to all entities within the SGPB Hambros group.
Senior Management are required to set the standards governing the handling of conflicts of interest within a firm. Within the bank, the responsibility for ownership of conflict risk ultimately rests with the Executive Committee, and therefore the members of the Committee must take reasonable steps to prevent conflicts of interests from constituting or giving rise to a material risk of damage to the interests of clients within the areas for which they have responsibility.
In practice, the performance of these responsibilities will be delegated to all staff to identify and manage appropriately any conflicts of interest that arise in his or her business area or department. This means that all staff should be aware of the extent of the risk in his or her area in terms of conflicts of interest and is aware of the processes that should be followed in the event of a potential conflict arising.
The Compliance Departments have responsibility for recording the details of conflicts arising, as well as for monitoring the effectiveness of the conflicts procedures, and will do so as part of the Compliance Monitoring programme.
Whilst detailed, the policy is not intended to be a comprehensive list of all conflicts and/or situations which may give rise to such conflicts. Inevitably, circumstances will arise that are not specifically covered.
Broadly a conflict may arise wherever two or more parties have different interests in an undertaking. Conflicts may arise between the interests of a firm and client, between two or more clients or even between a firm’s employees and clients. The following list sets out some of the circumstances where conflicts may arise. This list is not exhaustive and we monitor all areas to identify potential conflicts arising. Conflicts may arise where we or a connected company;
This policy is communicated to all employees to enable the successful management of conflicts of interest. All staff should regularly review their area of business to identify potential conflicts and to assess whether we are taking appropriate steps to manage those conflicts. All instances of potential conflict will be recorded and, where appropriate, reports will be made to senior management and the Board.
Where activities carried on in two different parts of the bank could involve conflict, we endeavour to manage the risk by strictly segregating activities. As such, information or activities that would otherwise create potential conflict if shared amongst parts of the business are restricted. Methods used to segregate business areas include physical separation as well as operational separation. Compliance will also monitor the segregation controls to ensure that they are being properly applied.
Separation of function is achieved by the imposition of management structures which ensure that decisions in a particular operational area are made independently of other operational areas and without knowledge of, and without regard to the wishes, intentions, interests or the confidential information in the possession of any competing or conflicting operational area.
SGH also relies on a policy of independence which requires staff to disregard any material interest or conflict of interest when making recommendations or arranging transactions for clients.
Standards and procedures are set for when and how employees are permitted to deal in investment either for themselves or connected persons. Connected persons of employees, are deemed to include all parties where the individual might be considered to have an influence over the investment dealings of that party. The following parties are assumed to be connected persons:
All permanent, temporary & contract employees are subject to the following rules.
The additional prohibitions also apply:
(i) Dealing ahead of Customers
If an employee knows or should reasonably know that the bank has accepted an order or instructions from a customer or has decided on behalf of a customer to effect any transaction, the employee may not deal the same way for his own account until the order or instruction or decision in question has been executed or cancelled.
(ii) Dealing ahead of Research
If an employee knows or should reasonably know that SG has in its possession the results of research and analysis and will or may publish to its customers those results or recommendations to effect transactions in investments based on those results, the employee may not deal in those investments for his own account until the recommendations have been published generally to all customers interested or expected to be interested in the investments concerned and such customers have had a reasonable opportunity to react to the recommendations.
Employees must keep Compliance informed of any directorships or outside interests. This covers:
No gifts other than duly authorised SGH promotional items should be given to clients or suppliers and such gifts must be given within normal SGH business practices. Any exceptions must be approved by the SGH unit Managing Director.
No gift or benefit should be given or received by an employee which is of a magnitude which could result in undue influence or a clouding of an employee’s objectivity.
Circumstances where the giving or acceptance of a gift may not give rise to a conflict of interest are as follows:
Where an employee provides entertainment (including meals and social activities) to a client it must be in the course of their duties and within normal business practice. Entertainment may be accepted by an employee if it is in the course of their job responsibilities and if the entertainment is within the normal business practice.
All gifts and entertainment is recorded and monitored by Compliance.
The way in which members of staff are remunerated is also considered to ensure that remuneration structures do not create a conflict between incentives given to staff and the best interests of clients.
Neither we, nor any connected company, shall disclose to clients the nature or extent of any interest we have in any security, unless obliged to do so by any applicable law or regulation.
From a regulatory perspective, records of all conflicts of interest arising must be maintained for a minimum of 5 years.
It is also required that the conflicts policy is regularly reviewed, and records maintained of all changes made thereto, for a period of five years. Such a review goes part way to ensuring compliance with the record keeping requirements.
The bank’s Compliance Department will be responsible for reviewing and updating this Conflicts Policy.
