| XI. Sales Discipline |
Maintain a high standard of professionalism in dealing with counterparties and observe the rules that relate to compliance, with particular reference to the handling of confidential information. Comply with the rules of conduct (e. g. integrity; skill, care and diligence; best market practice; conflict of interest, responsibility of information, interest of justice 'suitability' and front-running) at all times.
- In accordance with the principles of data protection, the confidentiality of all conversations held in offices where loudspeakers or intercoms are used must be ensured.
- Do not spread any rumours or misinformation which the personnel knows, or has reason to believe, is false or misleading.
- Do not engage in any practice that is deceptive, manipulative or of a dubious nature even if the practice lies in a "grey area" of legal or ethic acceptability.
- Soliciting or offering explicit inducements or bribes to counterparties or the employees/representatives of counterparties in return for business is forbidden. Under no circumstance will rebating be allowed.
- The acceptance of entertainment or token gifts is permitted, but only on a strict defined basis. Entertainment must not be excessive and must be appropriate in the context of conducting a normal business relationship. Gifts must be of a nominal or immaterial value, otherwise they must be disclosed to the department head and the compliance department. Under no circumstances must the acceptance of entertainment or gifts compromise, or appear to compromise, the integrity of any member of trading and sales personnel.
- Senior management must ensure that in seeking to foster a close professional relationship between the trading and sales areas of the bank and any one client or group of clients, there does not develop, intentionally or unintentionally, a situation resulting in inappropriate or unethical preferential treatment being given to or being received from any one client or group of clients.
- Report promptly any suspicious transaction or activities. Circumstances that may arouse suspicion would include:
- Transactions with no apparent commercial or economic purpose
- Transactions that are "too good to be true", or the client is oblivious to potential profits or losses
- Parking, "wash" trades, profit or loss sharing agreements or indemnifying clients or counterparties against losses.
- Requests to engage in transactions at non-market prices.
- Transactions where secrecy is important, including requests to suppress confirmations, or issue them direct to a client's front office.
- Any suspicion that a client may be engaged in illegal activity including fraud, market manipulation or tax evasion
- Any suspicion that your counterpart may be trying to hide transactions, positions, profits or losses from his management, auditors or regulators.
- Refer requests for unusual settlement arrangements directly to Compliance and to Head of Sales.
- On off-market trading:
- Prudent business practice requires that transactions should only be carried at prevailing market rates (This is to avoid being party to a concealment of profit or loss).
- Remember that at all times, lines for trading may be recorded. They may be used to resolve queries.
- All deals must be executed within your trading premises unless there is proper authorization from Compliance.
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