The licensed member must maintain adequate segregation of responsibilities in their staffing arrangements, to protect against the misuse of systems or errors. Such segregation should ensure that no single individual has control over all stages of a securities or futures contracts transaction. The segregation of responsibilities must also ensure avoidance of any conflict of interest and maintain a Chinese Wall between the front office functions and the back office functions. Therefore, controlled functions (a), (b) (c) and (g) shall not be combined with other functions.

The exempted member shall also adhere to the abovementioned prior approval and segregation requirements.