Conflicts of Interest Policy
FCA Principle 8 requires us to manage conflicts of interest fairly, both between itself and its customers and between a customer and another client. SYSC 10.1 requires the Clim8 Invst to take all reasonable steps to identify conflicts of interest between:
- Clim8 Invest (including its staff or any person directly or indirectly linked to them by control), and a client of the Company; or
- One client of Clim8 Invest and another client
Accordingly, our Conflicts of Interest Policy is designed to identify, assess, manage and if appropriate, disclose all potential and actual conflicts of interest in our business.
Clim8 Invest is committed to maintaining the highest ethical standards and complying fully with its regulatory and legal obligations. Compliance with this Policy is a requirement of the employment contract of every employee and any breach may lead to disciplinary proceeding, up to and including dismissal.
2. Identification of Potential Or Actual Conflicts
Staff must consider, in identifying conflicts, all of the factual circumstances. The must also take into account whether Clim8 Invest, an employee or a person directly or indirectly linked by control to Clim8 Invest:
- is likely to make a financial gain or avoid a financial loss at the expense of a client;
- has an interest, distinct from the client, in the outcome of a transaction or service provided to or on behalf of a client;
- has a financial interest or incentive to favour a client or group of clients over the interest of others;
- carries on the same business as the client; or
- receives or will receive from a person (other than the client) an inducement in relation to a service provided to the client. This may take the form of monies, goods or services, other than the standard commission or fee for that service.
Any circumstances that may be considered to give rise to an actual or potential conflict of interest must be disclosed to the Compliance Officer who will record the conflict.
3. Managing Conflicts of Interest
A Conflict of interest must be managed promptly and fairly. Clim8 Invest has put in place a proactive monitoring mechanism to manage potential conflicts:
- Compliance Reviews: reviews are undertaken on a formal basis, having been developed in-house with advice from external advisers.
- Compliance Training: training programmes are provided for staff , with ongoing refreshers and other more informal methods to raise Staff awareness of Clim8 Invest’s policies and procedures, legal requirements and expectations in relation to ethics and code of conduct.
- Access to information will be controlled and will be on a ‘need to know’ basis. Where appropriate Clim8 Invest will put in place information barriers to control information flows coming into, within and leaving Clim8 Invest.
- Separate supervision of relevant persons whose principal functions involve carrying out activities on behalf of, or providing services to, clients whose interests may conflict, or who otherwise represent different interests that may conflict, including those of Clim8 Invest.
- Limit on any person from exercising inappropriate influence over the way in which a relevant person carries out investment or ancillary services or activities.
- The Personal Account Dealing Policy specifies the rules and procedures on personal account dealing by employees.
- The Gifts & Entertainment Policy details Clim8 Invest’s rules on the acceptance and offering of gifts and entertainment.
- Order Execution Policy will be implemented, governing how Clim8 Invest deals with client orders to achieve the best result with their interest in mind.
- All Staff will receive training on their duties and obligations regarding anti-money laundering, anti-bribery and corruption and market abuse.
- Relevant Staff holding controlled functions will be suitably trained and competent and approved by the FCA.
Clim8 Invest maintain a comprehensive Conflict of Interest framework, as part of this, the firm has robust processes in place to ensure compliance with FCA provisions on Inducements under Cobs 2.3.A
Clim8 Invest has a policy of not paying or accepting from any party (other than the client or a person on behalf of the client) any fee/commission or nonmonetary benefit in connection with the provision of an investment service or ancillary service.
In the limited situations where fees/commissions and non-monetary benefits are paid, received or provided to or by third parties, the payments are strictly monitored and reviewed to ensure that they comply with Clim8 Invest’s Conflicts of Interest policy and meet the FCA requirements. Where necessary clients will be provided essential terms of such arrangement to enable them to make fully informed decisions regarding their investment activity. In accordance with COB 2.3.A.5 the information provided will detail the existence, nature and amount of the fee or benefit or, where the amount cannot be ascertained, the method of calculating that amount.
5. Information Barriers
Information barriers are maintained as required to ensure confidential information within the firm is restricted to those who have a proper requirement for the information consistent with the legitimate interest of a client or Clim8 Invest.
It is essential that all Staff are aware of and respect these information barriers so that Clim8 Invest cannot at any time be accused of misusing any confidential information whether it has been entrusted to Clim8 Invest by clients, or relates to the operations of a particular business area within Clim8 Invest.
Staff who are in any doubt regarding the status or position of information which they have in their possession, or have access to, should consult with Compliance.
In order to complement the use of information barriers, all Staff should observe the following good practices:
- use project names or code words when talking in public areas or non-secure areas in Clim8 Invest;
- use meeting rooms to discuss confidential or inside information;
- refer all potential conflicts of interest to the Compliance Officer;
- inform Compliance immediately if you believe that you are or may be in possession of inside information, even if received inadvertently;
- obtain prior consent from a client if confidential information received is to be shared or used for purposes different to the capacity in which it was given;
- notify Compliance of others you wish to make an ‘insider’;
- consider if another member of staff’s position will be compromised by his/her unwittingly becoming an insider;
- keep confidential and inside information secure; or
- be aware of how long the inside information is likely to remain so, since holding it for a long period may only unduly restrict you or others in conducting other business; and
- educate clients about Clim8 Invest’s Chinese Walls procedures, including disclosing those staff who should be contacted for specific reasons.
Clim8 Invest shall take all appropriate steps to manage any conflict of interest, but if those efforts are not sufficient to ensure, with reasonable confidence, that the risk of damage to the interest of a client will be prevented. Clim8 Invest shall, where appropriate, disclose the general nature and/or source of the conflict of interest (together with details of the steps that we have taken to mitigate the risks) in writing to the client before undertaking business for the client. Any disclosure shall contain sufficient information to allow the client’s to make an informed decision.
It is the policy of Clim8 Invest to disclose all material interest or conflicts of interest to the client whether generally or in relation to a specific transaction before it deals on behalf of a client, through its standard Terms of Business. This disclosure is made even where Clim8 Invest has employed other measures to manage conflicts and those measures have the effect that the risk of damage to a client’s interest is low.
7. Review, Governance and Oversight
This Policy is formally reviewed at least on an annual basis or promptly should there be any material change in the interim.
The Policy will also be reviewed on the occurrence of a material change in our trading arrangements or a material change in our underlying regulatory obligations
The responsibility for managing Conflicts of Interest rests with Clim8 Invest’s Board; it must ensure that they are kept fully aware of the FCA requirements in respect of Conflicts of Interest and are able to identify and prevent or manage any Conflicts of Interest or potential Conflicts of Interest.
Clim8 Invest’s Board is responsible for ensuring that it’s systems and controls are robust and sufficient to determine that Clim8 Invest is taking all appropriate steps to identify and prevent or manage any conflicts of interest that may arise.
Clim8 Invest’s Board will ensure that they receive sufficient Management Information to enable them to carry out an informed assessment of Clim8 Invest’s arrangements in order to assess that they are operating effectively
8. Useful Contacts
Additional regulatory information can be found under the FCA website www.fca.gov.uk