It is a common phenomenon that professionals within the securities and investment industry owe important duties to their clients, to the market, the industry and to society at large. Where these duties are set out in law or in regulation, the professional must always comply with the requirements in a discrete and transparent manner.
Membership of the Institute of Capital Markets (ICM) requires members to meet the standards set out within the Institute’s Principles. These principles impose upon members an obligation to act in a way that moves beyond mere compliance and supports the underlying values of the Institute.
As a guide, the Principles are shown below; however, members should be aware that the list is not just limited to these principles. Also this is not exclusive and it is recognized that in some instances, the principles are applicable to more than one stakeholder.
- When dealing with clients, and to act honestly and fairly at all times, customers and counterparties and to be a good steward of their interests, taking into account the nature of the business relationship with each of them, the nature of the service to be provided to them and the individual mandates given by them.
- During the appointment, the members should act with integrity in fulfilling the responsibilities and seek to avoid any acts, omissions or business practices which damage the reputation of the organization or which are deceitful, oppressive or improper and to promote high standards of conduct throughout the organization.
- Follow applicable laws, regulations and professional conduct standards when carrying out financial service activities and to interpret and apply them to the best of the ability according to principles rooted in trust honesty and integrity.
- Observe the standards of market integrity, good practice and conduct required by or expected of the participants in the market while executing transactions or engaging in any form of market dealings.
- Manage fairly and effectively and to the best of the ability any relevant conflict of interest, including making any disclosure of its existence where disclosure is required by law or regulation or by the employing organization.
- Attain and actively maintain a level of professional competence appropriate to the responsibilities and commit to continued learning and the development of others.
- Strive to uphold the highest personal standards including rejecting short-term profits which may jeopardize the reputation and that of the employer, the Institute and the industry.
A material breach of the Principles would be incompatible with continuing membership of the Institute of Capital Markets.
Members who find themselves in a position which might require them to act in a manner contrary to the Principles are encouraged to:
- Discuss their concerns with their line manager.
- Seek advice from their internal compliance department.
- Approach their firm’s non-executive directors or audit committee.
If unable to resolve their concerns and, having exhausted all internal avenues, contact the Institute of Capital Markets for advice (email:email@example.com)