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RP-2.1.2

To demonstrate compliance with Rule RP-2.1.1 above, relevant persons must, in relation to their role with respect to a CIU:

(a) Observe high standards of integrity and fair dealing, including being honest and straightforward in their dealings with clients;
(b) Take all reasonable steps to identify, and prevent or manage, potential or actual conflicts of interest that could harm the interests of CIU participants (such steps must include, wherever appropriate, declaring such conflicts);
(c) Act with due skill, care and diligence;
(d) Act impartially and refrain from any action which may be to the advantage of one CIU and/or its participants, at the expense of another CIU and/or its participants;
(e) Observe in full any obligations of confidentiality, including with respect to client information. This requirement does not override lawful disclosures;
(f) Observe proper standards of market conduct, and avoid action that would generally be viewed as improper;
(g) Take reasonable care to safeguard the assets of the CIU for which they are responsible, and ensure that those assets are kept separate from their own assets and are separately identifiable from the assets of other CIUs with which they are involved;
(h) Pay due regard to the legitimate interests and information needs of the clients and communicate with them in a fair and transparent manner;
(i) Act in an open and co-operative manner with the CBB and other regulatory/supervisory bodies under whose authority they come under. They should take reasonable care to ensure that their activities comply with the requirements of Volume 7, all applicable Laws and Regulations (including the Commercial Companies Law), the prospectus of the CIU, and the provisions of the contractual agreements signed with the CIU;
(j) Take all reasonable steps to rectify any failure to comply with the obligations specified in Sup-paragraph (i), and to notify the CBB of such a breach as soon as it becomes aware of the fact;
(k) Maintain adequate human, financial and other resources sufficient to run the CIU in an orderly manner;
(l) Keep accurate accounts and records for each CIU for which it holds assets;
(m) Take reasonable care to ensure that their affairs are managed effectively and responsibly, with appropriate systems and controls in relation to the size and complexity of their operations. Their systems and controls, as far as is reasonably practical, should also be sufficient to manage the level of risk inherent in their business; and
(n) Ensure that when outsourcing functions, such outsourcing is properly controlled and that ultimate responsibility for the proper discharge of those functions is retained by the relevant person concerned.
April 2012