Under FCA’s Principles for Businesses, Principle 8 requires a firm to “manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.” Under the Markets in Financial Instruments Directive (“MiFID”), Quantlogic Limited (“Quantlogic”) is required to maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to identify, monitor and manage such conflicts of interest. Quantlogic has put in place a policy to meet this obligation and set out below is a summary of that policy and the key information that is needed by clients and counterparties (together “customers”) to understand the measures Quantlogic is taking to safeguard the interests of its customers.
Quantlogic seeks to:
A conflict of interest under MiFID is a conflict that arises in any area of Quantlogic’s business in the course of providing its customers with a service which may benefit Quantlogic (or another customer for whom Quantlogic is acting) whilst potentially materially damaging another customer where Quantlogic owes a duty to the customer. There may be a conflict where Quantlogic (or anyone connected to Quantlogic including another Quantlogic affiliate):
Quantlogic has sought to identify conflicts of interest that exist in its business and has put in place measures it considers appropriate to the relevant conflict in an effort to monitor, manage and control the potential impact of those conflicts on its customers. The conflicts identified include:
Quantlogic has adopted internal policies and procedures in order to manage recognised conflicts of interests. These policies and procedures will be subject to our normal monitoring and review processes and include:
Quantlogic insists that in its dealings with customers its staff must use the highest standard of integrity in their actions at all times. The induction programme, training and competency procedures and monitoring programme at Quantlogic are designed to ensure that all relevant staff are familiar with and observe, inter alia, the FCA Principles for Businesses, the Statements of Principle and the Code of Practice for Approved Persons.
Quantlogic has a policy on Personal Account Dealing and the rules are signed off as understood by all relevant employees regardless of their position within Quantlogic .
Quantlogic insists on strict customer confidentiality to ensure that information is disclosed only to those entitled to receive it or otherwise with the prior approval of the Compliance Department.
Staff are not allowed to accept gifts, entertainment or any other inducement from any person which might benefit one customer at the expense of another when conducting investment business. Quantlogic has a Gifts and Entertainment Policy which is part of the staff’s Policy Manual and is monitored by management on a regular basis.
All relevant staff who are open to a conflict of interest are paid a basic salary including those in key support areas such as Compliance, Finance and Back Office. This salary is not dependent on company performance. A bonus scheme does exist which is linked to the company’s performance and the performance of the individual. It is entirely discretionary.
Where appropriate, Quantlogic has arranged for the separate supervision of those carrying out functions for customers whose interests may conflict, or where the interests of customers and Quantlogic may conflict and has taken steps to prevent the simultaneous or sequential involvement of a relevant person in separate services or activities where such involvement may impair the proper management of conflicts of interest.
As a last resort, where there is no other means of managing the conflict or where the measures in place do not, in the view of Quantlogic , sufficiently protect the interests of customers, the conflict of interest will be disclosed to customers to enable an informed decision to be made by the customer as to whether they wish to continue doing business with Quantlogic in that particular situation.
Finally, where Quantlogic considers it is not able to manage the conflict of interest in any other way it may decline to act for a customer.
All investment research issued by Quantlogic Ltd ("Quantlogic") is independent, impartial and objective. Quantlogic does not conduct any investment business with or for its clients, other than the provision of investment research and advice. Quantlogic staff have no other responsibilities which could conflict with the interests of our clients. Quantlogic does not carry out any corporate finance business; and has no involvement in raising capital for corporate clients. Quantlogic has no other regulated or unregulated business activities which conflict with its provision of independent research.