MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4811.12.31These policies aim to ensure honest and fairdischarge of investment trading functions ofall qualified personnel. Qualified personnelare those that may have access to informationon clients and investment position-taking ofclients, investment manager or portfolios.The use of such information may be abusedand detrimental to the clients. The policyshall state the duties and responsibilities ofeach qualified personnel in relation totrading and portfolio management activitiesincluding allowed and not allowedtransactions as well as sanctions in case ofviolations.iv. Confidentiality and materiality ofInformation. The TE must keep informationabout past, current and prospective clientsconfidential, unless disclosure is authorizedin writing by the client or required by lawand the information involve illegalactivities perpetrated by the client. It mustensure safekeeping of confidential andmaterial information and prevent the abuseof such information to the detriment of theinstitution or its clients.v. Fair dealing. The TE shalldocument dealing practices to ensurefair, honest and professional practices inaccordance with the best interest of theclient and counterparties at all times andfor the integrity of the market. It mustensure that any representations or othercommunications made and informationprovided to the client are accurate andnot misleading. The TE must also takecare not to discriminate against any clientbut treat all clients in a fair and impartialmanner.vi. Diligence and reasonable basis. Inconducting its investment services, the TEshall act with skill, and care and diligence,and in the best interests of its clients andthe integrity of the market. The duty ofdue diligence is intertwined with the dutyto maintain independence and objectivityin providing investment recommendationsor taking investment actions. Whenproviding advice to a client, the TE shall actdiligently and make certain that its adviceand recommendations to clients are basedon thorough analysis and take into accountavailable alternatives.• The TE shall take all reasonablesteps to execute promptly client orders inaccordance with the instruction of clients.• The TE, when acting for or withclients, shall always execute client orderson the best available terms.• The TE shall ensure thattransactions executed on behalf of clientsare promptly and fairly allocated to theaccounts of the clients on whose behalf thetransactions were executed.Where a client opts not to accept therecommendation of the TE and chooses topurchase another investment productwhich is not recommended, the TE mayproceed with the client’s request/instruction, provided it shall document thedecision of the client and highlight to him/her that it is his/her responsibility to ensurethe suitability of the product selected.vii. In-House or related partytransactions handling. The TE shall definethe policies in handling related-interesttransaction to ensure that the best interestof clients prevails at all times and alldealings are above board. It must conformto the requirements of Subsecs. X409.3 andX411.5.viii.Valuation. The TE shall document theinstitution’s valuation process to show thesources of prices, either market or historicalvalue, and the formula used to derive theNAV of investment portfolios. Valuationshall be understood, compliant with writtenpolicies and operating procedures, andused consistently within the TE. The TEmust ensure that the valuation processesof service providers, custodians, and othersubcontractors are compatible with thoseof the TE and in compliance with relevantstatutory or regulatory valuation standards.Risk officers shall document theApp. Q-48 - Page 10Manual of Regulations for Non-Bank Financial Institutions