1.Introduction

This policy outlines an effective and sustainable approach to the identification and management of conflicts of interest for ProperFX (Pty) Ltd (ProperFX), FSP No. 49045. The policy complies with the best practices and statutory requirements as per the General Code of Conduct for Financial Services Providers and Representatives, as well as the Financial Advisory and Intermediary Services Act, 2002 (“FAIS”).

2.Scope

This policy applies to all employees, outsourced service providers, and stakeholders involved in the development, implementation, and management of policies within ProperFX (Pty) Ltd. Non-compliance with this policy may result in disciplinary action, including dismissal.

Purpose

The purpose of this policy is to:

• Provide guidance on the behaviors expected in accordance with ProperFX standards.
• Promote transparency and mitigate any business-related Conflict of Interest between ProperFX, its clients, vendors, and/or employees.
• Ensure fairness in the interests of employees and ProperFX.
• Document the process for the disclosure, approval, and review of activities that may amount to actual, potential, or perceived Conflict of Interest.
• Provide a mechanism for the objective review of personal outside interests. ProperFX is committed to conducting business ethically and equitably, safeguarding the interests of all stakeholders, and minimizing and managing all real or potential conflicts of interest.

4. Definitions

For the purposes of this policy, the following definitions apply:

• Conflict of Interest: Any situation in which ProperFX or its representatives have an actual or potential interest that may influence the objective performance of their obligations to a client or prevent them from rendering an unbiased and fair financial service to that client.
• FAIS: The Financial Advisory and Intermediary Services Act, 2002.
• Financial Interest: Includes any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic and foreign travel, hospitality, accommodation, sponsorship, or other incentive or valuable consideration, excluding:
• An ownership interest.
• Training not exclusively available to a selected group on products and legal matters related to those products, general financial and industry information, or specialized technological systems necessary for rendering a financial service.
• Immaterial Financial Interest: Any financial interest with a determinable monetary value, the aggregate of which does not exceed R1,000 in any calendar year from the same third party.
• Representative: A duly appointed representative and/or representative under supervision of ProperFX.
• Ownership Interest: Any equity or proprietary interest for which fair value was paid at the time of acquisition, excluding interests held as an approved nominee on behalf of another person, and includes any dividend, profit share, or similar benefit derived from that equity or ownership interest.
• Financial Service Provider: ProperFX (Pty) Ltd.
• Product Supplier / Over-the-Counter Derivatives Provider: ProperFX Ltd

5. Procedures

ProperFX and its representatives may only receive or offer financial interest from or to a third party as determined by the FAIS Act or any Board Notice.

ProperFX must not offer any financial interest to its representatives for giving preference to the quantity of business secured for the provider over the quality of service rendered to clients, or for favouring a specific product supplier where multiple suppliers are available.

• 5.1. Identifying Conflict of Interest: To identify potential conflicts of interest, representatives should ask:
  • Am I acting in the best interest of the client?
  • Am I acting in the best interest of ProperFX?
  • Am I acting professionally, independently, and objectively?
  • Are my interests aligned with those of ProperFX?
• 5.2.Resolving Conflict of Interest: Directors, Managers, Key Individuals and representatives are expected to avoid all Conflict of Interest where possible and disclose and mitigate where not possible.
• 5.3.Potential Conflict of Interest Scenarios:
  • Directorships or other employment.
  • Interests in business enterprises or professional practices.
  • Share ownership or beneficial interests in trusts.
  • Personal account trading.
  • Professional associations or relationships with other organizations.
  • Personal associations with other groups, organizations, or family relationships.
  • Insider trading and front running.
  • Rebates and kickbacks.
  • Commission structures.
• 5.4. Measures to Avoid Conflict of Interest:
  • The management team will convene to review any identified Conflict of Interest.
  • All relevant information about the Conflict of Interest must be disclosed to all interested parties and the Compliance Officer.
  • The management team will consider the consequences of avoidance and unavoidability and their impact on clients, the financial services industry, and ProperFX.
  • If a more advantageous arrangement without Conflict of Interest is attainable, it should be pursued.
  • If unavoidable, the management team must determine if the arrangement is in the best interest of ProperFX and the affected clients.
  • All actions and decisions regarding Conflict of Interest must be documented and stored in the compliance file.
• 5.5.Disclosure of Conflict of Interest: At the earliest reasonable opportunity, ProperFX and its representatives must disclose to clients any actual or potential Conflict of Interest, including:
  • Measures taken to avoid or mitigate the Conflict of Interest.
  • Any ownership or financial interest ProperFX or its representatives may be eligible for.
  • The nature of relationships with third parties that give rise to the Conflict of Interest.
• 5.6.Monitoring and Reporting: The Compliance Department will conduct ongoing monitoring and annual reviews of actual and potential conflicts of interest, reporting findings to the Board of Directors.

6. Review and Amendment

This Policy shall be reviewed annually by the Policy Owner. Amendments may be made as necessary to ensure continued compliance and relevance.

7. Approval

This Policy is approved by the management of ProperFX (Pty) Ltd.