CONFLICTS OF INTEREST POLICY
The www.forex4group.com website is operated by Stocks Forex AF Ltd (hereinafter “Stocksforex AF” or the “Company”) an investment firm regulated by the Cyprus Securities and Exchange Commission with license number CIF 283/15. Stocksforex AF is required, in accordance with the European Union’s Markets in Financial Instruments Directive ("MiFID") and in accordance with the Investment Services Activities and Regulated Market Law 2007 in Cyprus to provide information on the Company’s policy on conflicts of interest and its approach to managing any conflicts of interest fairly: both between forex4group.com, our directors, employees and our clients, and between your interests and those of other clients.
DEFINITION OF CONFLICT OF INTEREST
Stocksforex AF defines a conflict of interest as any situation where either Stocksforex AF or an individual is in a position to exploit a professional or official capacity in some way for either corporate or personal benefit. Situations where conflicts of interest can occur include the following:
- The Company or a relevant person, or a person directly or indirectly linked by control to the Company, is likely to make a financial gain or avoid a financial loss, at the expense of the client.
- The Company or a relevant person, or a person directly or indirectly linked by control to the Company, has an interest in the outcome of a service provided to the client, or of the transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome.
- The Company or a relevant person, or a person directly or indirectly linked by control to the Company, has a financial or other incentive to favour the interest of another client or group of clients over the interests of the client.
- The Company or a relevant person, or a person directly or indirectly linked by control to the Company, carries on the same business as the client.
- The Company or a relevant person, or a person directly or indirectly linked by control to the Company, receives or will receive from a person other than the client an inducement in relation to a service provided to the client, in the form of money, goods or services, other than the standard commission or fee for that service.
Relevant person in relation to the Company means any of the following persons:
- a member of the board of directors, partner or equivalent, manager or tied agent of the Company;
- a member of the board of directors, partner or equivalent, or manager of any tied agent of the Company;
- an employee of the Company or of a tied agent of the Company, as well as any other natural person whose services are placed at the disposal and under the control of the Company or a tied agent of the Company who is involved in the provision by the Company of investment services or/and the performance of investment activities;
- a natural person who is directly involved in the provision of services to the Company or to its tied agent under an outsourcing arrangement for the purpose of the provision by the Company of investment services or/and the performance of investment activities;
The affected parties if conflict of interest arises can be the Company, its employees or its clients. More specifically, a conflict of interest may arise, between the following parties:
- Between the client and the Company.
- Between two clients of the Company.
- Between the Company and its employees.
- Between a client of the Company and an employee/manager of the Company.
- Between Company’s Departments.
Conflicts of interest can occur in a number of situations, for example:
- The Company is likely to sustain an overall financial loss or avoid a financial loss, by executing a client’s specific order.
- The Company is likely to sustain an overall financial gain by not executing a client’s specific order.
- The market moves to a direction of a point/timing when by executing client’s order will result in a financial loss for the Company.
PERSONAL TRANSACTIONS OF EMPLOYEES
Employees of the Company that are involved in the provision of investment services or other activities and persons who are employed by companies which perform an outsourced investment service or activity to the Company if any, must not enter into the personal transactions that which will cause the following:
- enter into a transaction prohibited under section 9 of the Insider Dealing and Market Manipulation (Market Abuse) Law,
- misuse or cause improper disclosure of confidential information,
- enter in a transaction that is likely to conflict with any obligations of the Company, or the employee, that are stated under the law.
Where the employee has come into contact with information which is not publicly available to clients or cannot readily be inferred from information that is so available, the employees must not act or undertake personal transactions or trade, or in the execution of an unsolicited client order, on behalf of any other person, including the Company.
The employees must not disclose any opinion other than in the normal course of business, if the person who is given the opinion is likely to enter into a transaction which is contrary to the above. The employee also should not provide an advice or provide to anyone any information, other than in the proper course of his/her employment, especially if it is clear that the person who is receiving such information will advise another party who might acquire or dispose of financial instruments to which that information relates.
Any client’s orders that have been relayed to any employees of the Company must not be disclosed to another party. An employee of the Company who has knowledge of a potential client’s order must not carry out a personal transaction that is the same as the client order, if this will cause a conflict of interest.
To this end, Employees are prohibited to enter into personal transactions without the Company’s prior authorization and approval.
CONFLICT OF INTEREST MEASURES
Extensive measures have been adopted by Stocksforex AF to prevent, control and manage the exchange of information between relevant persons engaged in activities involving a risk of a conflict of interest. For example, Stocksforex AF has removed any direct link between the remuneration of relevant persons principally engaged with one activity and the remuneration of different relevant persons principally engaged in another activity.
The following measures have been adopted by the Company for ensuring the requisite degree of independence:
- Measures to prevent or control the exchange of information between relevant persons engaged in activities involving a risk of a conflict of interest (i.e. by establishing a Chinese wall)
- 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 the Company. The Company’s departments whose interests may conflict with clientsis: i. Dealing Room
- Removal of any direct link between the remuneration of relevant persons principally engaged with one activity and the remuneration of, or revenues generated by, different relevant persons principally engaged in another activity, where a conflict of interest may arise in relation to those activities: i. Dealing room employees do not relate their remuneration with clients’ performance.
- Measures to prevent or limit any person from exercising inappropriate influence over the way in which a relevant person carries out investment or ancillary services or activities. Additionally, the person who decides or influences an individual’s bonus may exert undue influence over that individual’s integrity of judgment.
- Measures to prevent or control the simultaneous or sequential involvement of a relevant person in separate investment or ancillary services or activities such as reception and transmission of clients’ orders and tasks such as portfolio decision making and calculating performance.
Chinese walls are essentially information barriers which are used to prevent inside or highly confidential information possessed by one part of the business from being inappropriately passed to, or obtained by, another part of the business. When a Chinese wall is used as a way of managing conflicts of interests, individuals on the other side of the wall will not be regarded as being in possession of knowledge denied to them as a result of the Chinese wall. For example, where arrangements have been put in place to ensure that entities belonging to the same group operate independently of each other with effective Chinese walls, the entities shall not be deemed to have knowledge of each other for conflicts of interest purposes.
DISCLOSURE OF CONFLICT OF INTEREST
When the measures taken by Stocksforex AF to manage conflicts of interest are not sufficient to ensure, with reasonable confidence, that the risk of damage to clients’ interests will be prevented, Stocksforex AF will disclose the conflicts of interest to the client in order to prevent a risk of damage to clients’ interests. Prior to carrying out a transaction or providing an investment or an ancillary service to a client, the Company must disclose any actual or potential conflict of interest. The disclosure will be in sufficient time, in a durable means and shall include sufficient detail, taking into account the nature of the client, to enable him to take an informed decision with respect to the investment or ancillary service in the context of which the conflict of interest arises. Clients will be given the opportunity to decide on whether or not to continue their relationship with us with no unreasonable obstacles.
Stocksforex AF maintains a record, which is regularly updated, of the kinds of investments and ancillary services or investment activities carried out by Stocksforex AF or on its behalf in which a conflict of interest entailing a material risk of damage to the interests of one or more clients has arisen.