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  • MIR-4.1 MIR-4.1 General Obligations

    • MIR-4.1.1

      A member shall, in respect of every regulated activity it undertakes:

      (a) Ensure that the regulated activities are undertaken in a fair, orderly and transparent manner;
      (b) Manage any risks associated with its business and operations prudently;
      (c) Not act contrary to the interests of its clients and the public investors;
      (d) Comply with the business rules of an SRO and, where appropriate, listing rules and clearing, settlement, depository rules of the licensed exchange and/or licensed clearing house, as the case may be, that make satisfactory provision for:
      1. A fair, orderly and transparent market in securities and futures contracts that are traded through the licensed exchange and/or licensed clearing house; and
      2. The proper internal regulation and controls, and the supervision of its employees and/or representatives;
      (e) Maintain proper arrangements to enforce compliance with the business rules of an SRO, listing rules, and/or clearing, settlement and central depository rules of the licensed exchange and/or licensed clearing house, as the case may be;
      (f) Have sufficient financial and human resources and back-up systems:
      1. To maintain a fair, orderly and transparent market;
      2. To establish and maintain proper segregation between the controlled functions;
      3. To meet the requirement for handling, managing and maintaining the clients' assets safely and properly;
      4. To meet contingencies or disasters; and
      5. To provide adequate security arrangements;
      (g) Ensure that it appoints or employs fit and proper persons as approved persons to perform any controlled function;
      (h) Use or arrange to use a well-designed Business Continuity Plan and Disaster Recovery Procedure;
      (i) Ensure that all its employees or representatives are provided with the required education, qualifications and experience and they fully understand the rules and regulations of the CBB, and relevant SROs;
      (j) Ensure that its clients receive fair treatment without any unjustifiable favour or discrimination for each class of clients;
      (k) Ensure that there is sufficient and appropriate records, books and systems in place to record all transactions traded, cleared and settled through its system and maintain an audit trail;
      (l) Have an operating manual and internal policies;
      (m) Provide to the CBB, for its review and comment, at least 5 business days prior to publishing in the press, the draft agenda for any shareholders' meetings referred to in Paragraph MIR-4.1.1 (o);
      (n) Ensure that any agenda items to be discussed or presented during the course of meetings which requires the CBB's prior approval, have received the necessary approval, prior to the meeting taking place;
      (o) Invite a representative of the CBB to attend any shareholders' meeting (i.e. ordinary and extraordinary general assembly) taking place. The invitation must be provided to the CBB at least 5 business days prior to the meeting taking place; and
      (p) Within one month of any shareholders' meetings referred to in Paragraph MIR-4.1.1(o), provide to the CBB a copy of the minutes of the meeting.
      Amended: July 2016
      Amended: April 2013
      Adopted January 2010

    • MIR-4.1.1A

      Licensed members must ensure that all regulated financial services are provided without any discrimination based on gender, nationality, origin, language, faith, religion, physical ability or social standing.

      Added: October 2020