Conflicts of Interest Statement
As an investment firm, Alpari (UK) Limited (“Alpari UK”) faces actual and potential conflicts of interest from time to time. By identifying the existing and potential conflicts of interest, Alpari UK endorses all reasonable steps to establish, implement and maintain an effective conflicts of interest policy to prevent any risk that may damage the interests of our clients.
This statement discloses the conflicts of interest you, as an existing client or potential client might face when engaging in business dealings with Alpari UK; the laws and regulations subject to conflicts of interest that Alpari UK is required to comply with; and the policy Alpari UK adopts for the aim of preventing and managing the conflicts of interest.
Identification and Examples of Conflicts that might arise
In general, conflicts of interest may be caused by the superior knowledge of employees and the variety of products on offer and may arise between a firm and a client, or between a client and another client.
When a firm provides service to a client, conflicts of interest may arise in one or more of the following situations when a firm or a relevant person:
- is likely to make a financial gain, or avoid a financial loss, at the expense of the client
- has an interest in the outcome of a service provided to or a transaction carried out on behalf of the client, which is different from the client’s interest in that outcome;
- has a financial or other incentive to favour the interest of another client(s) over the interests of the client;
- carries on the same business as the client; or
- receives or will receive from a person other than the client an inducement, other than standard commission or fee in relation to a service provided to the client (e.g. our Partnerships Department).
In respect to Alpari UK, the following are some of the main conflicts of interest that may occur when providing services to our clients;
(a) When Alpari UK executes a transaction for you, we are entering into the trade as principal and;
(b) You may have been introduced to us by a third party who receive remuneration from your trades
Laws and Regulations
The FSA recognises that conflicts of interest exist in financial services industry and does not aim to eliminate them. Nevertheless, Principle 8 of the FSA’s Principles for Business (PRIN) sets out that a firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client. Furthermore, the Senior Management Arrangements, Systems and Controls (SYSC) of the FSA handbook, in particular the SYSC 10, firms are required to manage the conflicts so that they do not damage the clients’ interest.
As required by law, Alpari UK implements and maintains an effective conflicts of interest policy for the aim of preventing conflicts of interest or potential conflicts of interest from causing a material risk of damage to the interests of clients.
Alpari UK keeps record of our business activities so that we can identify any conflict might entailing a material risk of damage to the interests of our clients. Alpari UK’s conflicts of interest policy adopts procedures and measures to manage and control the conflicts of interest identified, including segregation of duties and responsibilities; separate supervision of relevant persons; Personal Account Trading policy, Gifts and Inducement policy, prevention and control of the exchange of information; acting on the best interest of the clients; and in some cases declining to act for a client or potential client.
Whilst Alpari UK is devoted to implement and maintain our conflicts of interest policy, in some cases, such policy might not be sufficient to prevent risks of damage to the interest of a client. In such a case, Alpari UK shall disclose the general nature and sources of conflicts of interest to the client so that enables the client to make an informed decision whether to proceed with the transaction in question.
Alpari UK is devoted to provide more services and products to meet our clients’ demand. At the same time, Alpari UK frequently reviews and assesses our conflicts of interest policy so that can ensure the adequacy of such policy in compliance of the FSA rules