Authorised Firm must take reasonable steps to ensure that conflicts and potential conflicts of interest between itself and its Clients and between one Client and another are identified and then prevented or managed in such a way that the interests of a Client are not adversely affected and to ensure that all its Clients are fairly treated and not prejudiced by any such conflicts of interest.
(2) Where an
Authorised Firm is aware of a conflict or potential conflict of interest, it must prevent or manage that conflict of interest by using one or more of the following arrangements as appropriate:
(a) establishing and maintaining effective
Chinese Walls to restrict the communication of the relevant information;
(b) disclosing the conflict of interest to the
Client in writing either generally or in relation to a specific Transaction; or
(c) relying on a written policy of independence, which requires an
Employee to disregard any conflict of interest when advising a Client or exercising a discretion.
(3) If an
Authorised Firm is unable to prevent or manage a conflict or potential conflict of interest as provided in (2), it must decline to act for that Client.
Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]