MIR-4.1.1

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Past version: Effective from 15 Dec 2009 to 31 Mar 2013
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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; and

(l) Have an operating manual and internal policies.

Adopted January 2010