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  • Distribution Channel Risk

    • FC-C.2.9

      A customer may request transactions that pose an inherently higher risk to the investment firm licensee. Factors that may be considered as indicators of higher risk include:

      (a) A request is made to transfer funds to a higher risk jurisdiction/country/region without a reasonable business purpose provided; and
      (b) A transaction is requested to be executed, where the licensee is made aware that the transaction will be cleared/settled through an unregulated entity.
      Added: January 2022

    • FC-C.2.10

      An investment firm licensee should analyse the specific risk factors, which arise from the use of intermediaries and their services. Intermediaries’ involvement may vary with respect to the activity they undertake and their relationship with the licensees. Licensee should understand who the intermediary is and perform a risk assessment on the intermediary prior to establishing a business relationship. Licensees and intermediaries should establish clearly their respective responsibilities for compliance with applicable regulation.

      Added: January 2022