Conflicts of Interest Policy
This summary document is intended to provide customers and other relevant external parties with an overview of CIRCA5000’s approach to identifying and managing conflicts of interest. For the purposes of this document, CIRCA5000 includes CIRCA5000 Ltd, its group undertakings, staff and associates (including any appointed representative, tied agent, or nominee, etc.).
Summary of conflicts management at CIRCA5000
CIRCA5000 is committed to maintaining the highest professional standards. We manage and operate effective organisational and administrative arrangements with a view to take all reasonable steps to prevent conflicts of interest adversely affecting the interests of customers.We endeavour to identify, consider and manage potential conflicts of interest to ensure that we treat all of our customers fairly and in accordance with FCA rules and principles.
Nature of a conflict of interest
In essence, a conflict of interest is a situation in which CIRCA5000 finds itself in a position where its own interests conflict with the duties and obligations owed to its customers, or a situation in which CIRCA5000’s duty to one customer conflicts with its duty to another. Even where there is no evidence of improper action or actual loss to a party, the perception of a conflict of interest may create the appearance of impropriety which may undermine confidence and unduly damage CIRCA5000’s reputation and standing.
Identifying conflicts of interest
For the purposes of identifying a conflict of interest, we take into account whether CIRCA5000, its directors, employees or contractors or any other person linked by control to CIRCA5000 (“CIRCA5000 Personnel”):
- is likely to make a financial gain, or avoid a financial loss, at the expense of a customer;
- has an interest in the outcome of a service provided to a customer or transaction carried out on behalf of a customer, which is distinct from the customer’s interest in that outcome;
- has an incentive to favour the interests of a customer or group of customers over the interests of another customer;
- carries on the same business as a customer, or
- receives or will receive from a person other than a customer an inducement in relation to a service provided to the customer, in the form of remuneration, favours, goods or services.
We have identified a number of situations which may give rise to a potential conflict of interest. These situations include, but are not limited to, the following:
we receive gifts, entertainment or other monetary and non-monetary benefits from our service providers or business partners (for example, the fund managers of the funds we make available to customers through the APP);
we favour the funds we manufacture and/or manage over the other funds we make available to customers through the APP;
CIRCA5000 Personnel who have outside interests (e.g. directorships or other outside business commitments) may be influenced to act in a manner that conflicts with the interests of CIRCA5000 or its customers; and
where CIRCA5000 Personnel, in the possession of customer orders information, deal ahead for their own account in investments which are retained as investments for customer accounts.
Conflict avoidance & conflict management
We organise our business in such a way which seeks to avoid conflicts of interest arising and manage them appropriately if they do arise. This includes a combination of identify, managing, preventing, and as appropriate, disclosing potential conflicts of interest. CIRCA5000’s board is responsible for ensuring that the necessary policies and procedures are designed, implemented and maintained to address conflicts of interest.
Specifically, we have put in place the following policies procedures to assist in our identification and management of conflicts of interest:
Conflicts Log: we maintain a list of all potential conflicts of interest identified. With respect to each conflict, the log details the measures put in place to monitor and manage the conflict of interest.
Gifts & Entertainment Policy: we ensure that all CIRCA5000 Personnel are subject to appropriate restrictions and monetary limits for any gifts or entertainment given or received.
Personal Account Dealing Policy: we ensure that all CIRCA5000 Personnel pre-clear and report any personal trading activity which may conflict with the interests of our customers.
Pre-approval process for all outside business interests: we ensure that CIRCA5000 Personnel’s external commitments do not conflict with the interests of CIRCA5000 or our customers.
Segregation/Chinese Walls: where our internal functions might give rise to conflicts of interest, we put in place arrangements to separate such functions and ensure that separate management, information flows and reporting lines are established.
Disclosure: in appropriate and sometimes prescribed circumstances, disclosure is one of the most effective methods to manage a conflict of interest. Disclosures may be made in relation to fees and/or other benefits made to, or received from third parties.
Declining to act: circumstances may arise where, even after exhaustive measures are implemented, a conflict of interest is so severe that CIRCA5000 will decline to act and withdraw from a conflicting arrangement.
Training: all CIRCA5000 Personnel are provided with conflicts awareness and management training and receive training as to the standards of conduct expected of them by the CIRCA5000 board and the FCA.