Relevant staff and personal dealings. Companies dealing in securities or shares are required to implement policies clearly defining the responsibilities of their employees to the investors or clients as paramount, there should be a belief that giving priority at all times to the interests of its investors or clients is the best way of ensuring the continued success and profitability of the company and its investors.
Relevant Staff And Personal Dealings
All employees and officers are required during office hours to concentrate on their responsibilities to serve the investors or clients. The company should believe that employees whose attention is distracted by monitoring their financial positions will not give the priority to investors’ financial interests.
Companies should discourage their employees from active management of their personal financial affairs during business hours, and from dealing with investors. Management will closely monitor the activities, and behavior of the employees towards the investors and, their securities or investment-related dealings. The Compliance Officer of the organization may determine that dealings by a particular employee are unacceptable in type and non-compliance with the fair dealing policy. Management will request that employees deal in a prescribed manner as per applicable policies and regulations described. If the employee does not comply, then the action shall be regarded as a matter of serious misconduct.
Company or management nevertheless recognizes that employees may have a responsibility to themselves, partners, or families to monitor the investments. The employees are required to accept that the nature of their investment advice or services imposes restrictions on the dealings in which they can engage and, reduces the extent to which they can claim privacy for their financial activities, and transactions.
Things That Employees Must Perform
Employees must ensure that care is taken on the part of those directly or indirectly concerned with financial matters, to ensure that fair dealings are implemented in letter and spirit. All employees must be prudent in their financial dealings with investors or clients. Employees should not enter into commitments that they may be unable to meet, causing financial losses to the investors or clients.
Employees must take measures to avoid the conflict of interests, which is relatively pervasive, and inherent. The structure of conflicts in the market equilibrium may be important and dealing with an individual conflict in isolation may not be best. The structure of a company may evolve in response to managing the conflict efficiently, and the structure of regulation. The agent (adviser) often works for multiple principals (accounts).
The agent’s payoff can have different sensitivities to its principals (accounts) due to such factors as incentive compensation, different management fee rates, the effect of past performance, and the shape of the flow for spillovers from “Star” funds. Favor one client over another and allocating profitable trades to the favored client leads to a conflict of interest.
Employees must not be an insider or involved in insider activities. The Insider may be a person or persons charged with the execution of orders concerning financial instruments, receiving information conveyed by a client, and relating to the client’s pending orders in financial instruments, relating, directly or indirectly, to one or more issuers or one or more financial instruments, and which, if it were made public, would be likely to have a significant effect on the prices of those financial instruments, the price of related spot commodity contracts, or on the price of related derivative financial instruments. (Article 7(1)d of the MAR).
Employees must avoid those actions which involve, a conflict of interest between themselves and the investor or client. Employees are required to abstain from dealing in an investment for themselves or the connected person when they are aware that another group company is currently dealing in that particular security or investment. Once the company has completed its order or decided not to deal, the employees may do so. Employees are required to be aware of the investment activities of the group companies, avoid conflict of interest, and ensure fair and transparent dealings with the potential investor or client.
Employees’ personal lives can have an impact on their ability to perform their jobs and interact with coworkers, supervisors, and customers. Even if employees are dealing with serious personal issues at home, they must still meet performance expectations and act professionally. Employers, on the other hand, can be understanding and supportive while enforcing performance and conduct standards at work.
Give specific examples of unacceptable behavior and make clear the employer’s expectations for improvement when addressing an employee whose personal problems are affecting his or her work performance. Bringing these issues to the employee’s attention with concern will most likely allow the individual to recognize how personal issues are negatively affecting working relationships and job performance.