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  • Inducements

    • BC-9.12.14

      Islamic bank licensees must have systems and controls, policies and procedures to ensure that neither they, nor any of their employees, offer, give, solicit or accept any inducement which is likely to conflict significantly with any duty that they owe to their customers.

      Added: April 08

    • BC-9.12.15

      An Islamic bank licensee may only accept goods and services under a soft dollar agreement if:

      (a) The goods and services do not constitute an inducement;
      (b) The goods and services are reasonably expected to assist in the provision of regulated investment services to the Islamic bank licensee's customers;
      (c) The agreement is a written agreement for the supply of goods or services described in Rule BC-9.12.14, and these goods and services do not take the form of, or include, cash or any other direct financial benefit; and
      (d) The Islamic bank licensee makes adequate disclosures regarding the use of soft dollar agreements.
      Amended: October 2015
      Added: April 08

    • BC-9.12.16

      For the purpose of Sub-Paragraph BC-9.12.15(d), Paragraph BC-9.12.12 sets out the minimum disclosure requirements.

      Added: April 08

    • BC-9.12.17

      A soft dollar agreement is an agreement in any form under which an Islamic bank licensee receives goods or services in return for investment business put through or in the way of another person.

      Added: April 08

    • BC-9.12.18

      Before an Islamic bank licensee enters into a transaction for a customer, either directly or indirectly, with or through the agency of another person, under a soft dollar agreement which the Islamic bank licensee has, or knows that another member of its group has, with that other person, it must disclose to its customer:

      (a) The existence of the soft dollar agreement; and
      (b) The Islamic bank licensee's or its group’s policy relating to soft dollar agreements.
      Added: April 08

    • BC-9.12.19

      If an Islamic bank licensee has a soft dollar agreement under which the Islamic bank licensee deals for a customer, the Islamic bank licensee must provide that customer with information as set out in Paragraph BC-9.13.12.

      Added: April 08