POLICIES AND PROCEDURES ON ANTI-BRIBERY AND ANTI-CORRUPTION
1. Policy Statement
As a matter of principle, Finwealth Management Sdn Bhd (“FWM”) is committed to operate lawfully, professionally, ethically and with integrity in all its dealings as propounded in the Company’s Code of Ethics and Professional Responsibility/Conduct.
In line with this commitment, FWM has developed its Anti-Bribery & Anti-Corruption Policy (the “Policy”). All members of the Board of Directors, staff and Financial Planners/Advisers must uphold the highest standard of integrity and accountability in discharging their duties and to ensure that all activities, offer or services are conducted in compliance with this Policy and all other applicable legal and regulatory requirement on anti-bribery and anti-corruption.
The standards of FWM Anti-Bribery & Corruption framework and measures are guided by T.R.U.S.T principles of the Malaysia Prime Minister’s Office – Guidelines on Adequate Procedures issued pursuant to subsection 17A of the Malaysian Anti-Corruption Commission Act 2009 (“MACCA”):
T = Top Level Commitment
R = Risk Assessment
U = Undertake Control Measures
S = Systematic Review, Monitoring and Enforcement
T = Training and Communication
All members of the Board of Directors, staff and Financial Planners/Advisers must sign an annual Anti-Bribery & Anti-Corruption Policy – Declaration Form as appended in Appendix A indicating that they have read and understood this Policy, and that they agree to comply with it.
The following definitions are included in this Policy:
Bribery is defined as any action which would be considered as an offence of giving or receiving ‘gratification’ under MACCA. In practice, this means offering, giving, receiving or soliciting something of value in an attempt to illicitly influence the decisions or actions of a person, in a position of trust within an organization.
Means (a) money, donation, gift, loan, fee, reward, valuable security, property or interest in property being property of any description whether movable or immovable, financial benefit, or any other similar advantage; (b) any office, dignity, employment, contract of employment or services, and agreement to give employment or render services in any capacity; (c) any payment, release, discharge or liquidation of any loan, obligation or other liability, whether in whole or in part; (d) any valuable consideration of any kind, any discount, commission, rebate, bonus, deduction or percentage; (e) any forbearance to demand any money or money’s worth or valuable thing; (f) any other service or favour of any description, including protection from any penalty or disability incurred or apprehended or from any action or proceedings of a disciplinary, civil or criminal nature, whether or not already instituted, and including the exercise or the forbearance from the exercise of any right or any official power or duty; and (g) any offer, undertaking or promise, whether conditional or unconditional, of any gratification within the meaning of any of the preceding paragraphs (a) to (f).
Means the Board of directors of the Company and which shall include all independent and non-independent directors, executive and non-executive directors of FWM
The areas covered under this Policy are as follows:
3. Conflict of interest
FWM conducts its business according to the principle that it must manage conflicts of interest fairly. FWM may face actual and potential conflicts of interest from time to time. Our policy is to take all reasonable steps to maintain and operate effective organizational and administrative arrangements to identify and manage any relevant conflicts that may arise.
The senior management is responsible for ensuring that there are appropriate and adequate systems, controls and procedures to identify and manage conflicts of interest. The Board of Directors will identify and monitor of actual and potential conflicts of interest.
It is stated in the FWM’s Compliance Manual that the board, employees and financial planner/advisors should exercise caution in their personal relationships with customers, suppliers, competitors or businesses introduced or affiliated with a customer or supplier. This is to ensure there is no involvement of obligations that may prejudice or influence the business relationship or result in any conflict with their duties. If a conflict of interest arises between employees and a third party, the employees or the relevant department head should be made aware of the conflict, where appropriate, and inform the Compliance department.
Should a conflict of interest arise, it must be managed promptly and fairly. FWM has put in place arrangements and/or procedures designed to ensure that:
- There is control of the flow of information where, otherwise, the risk of a conflict may harm the interests of a customer
- There is prevention of trading activities that harm the interests of a customer
- Appropriate and adequate disclosures to customers are made to enable the customer to make an informed decision
- Staff declares the gifts and entertainment received, their external engagements and appointments
- Where necessary, exclusion of certain persons from working on a specific transaction, business activity or participating in the management of a potential conflict of interest.
4. Gifts and Entertainment
Care should be exercised in the giving and receiving of business-related gifts/entertainment from customers, business partners and third-party suppliers. The act of giving or receiving these gifts must not carry any intention or obligation or expectation of favours. The Company’s aim is to deter givers of gifts from seeking or receiving special favours from FWM employees. Accepting any gift of more than nominal value or entertainment that is more than a routine social amenity can appear to be an attempt to influence the recipient into favoring a particular customer or vendor.
The acceptance of gifts under inappropriate circumstances may also amount to Bribery and/or a criminal act. Accepting gifts may be a crime under the MACCA, which provides that a person shall be guilty of an offence if he corruptly receives or gives a Gratification (whether in the form of cash, employment, business opportunities, favours or otherwise) as an inducement or reward to a person to do or not to do any act. To avoid the reality, the appearance that business judgement may be improperly influenced or compromised and to protect the staff from any perception of improper conduct or conflicts of interest, employees should observe the following guidelines when deciding whether or not to accept gifts.
- Gifts valued at Ringgit Malaysia RM500.00 and above, regardless an individual item or accumulated in value, are expected to be declared.
- Where circumstances make it impossible, difficult or impractical to reject gift or where the rejection of the gift may affect the relationship with the customers or business associates (other than cash or cash equivalent) or rejecting them is deemed as offensive given the local custom, the employeey may accept the gift(s). If accepted, it is deemed to have been accepted on behalf of the Company and become the property of the Company. The use of the gift is to be determined by the Human Resource department.
- Consumables like food gifts and hampers at nominal value will not need to be declared but instead be shared within the company staff.
The employee should obtain approval from his or her supervisor for business entertainment extended to the employee. As a guide, business meals are acceptable. The following need not be declared:
- Annual dinner/ gala dinner/ cocktail events which are also attended by employees or other companies / organizations
- Working lunches and other meals including those following / preceding official meetings, and
- Invitations to official opening ceremonies / seminars Business entertainment that might compromise the employee’s ability to or appear to hinder his or her duties in a professional manner should not be accepted.
The following are deemed as inappropriate:
a) Overseas trips in the form of paid holidays or holiday incentives;
b) Accepting invites or tickets by the employee when the prospective host will not be present at the event with the employee. If there are doubts as to whether business entertainment might create the appearance of any conflict or impropriety, these situations can be referred to Human Resource or to department head. Business entertainment valued at Ringgit Malaysia RM500.00 and above, is expected to be declared. If the staff receive or provide entertainment when on an official business overseas trip, this should be treated in the same manner as entertainment received locally and incurred in accordance with the Expense Reimbursement policy and procedure in the Employee Handbook.
Gifts and business entertainment valued at Ringgit Malaysia RM 500.00 and above (individually or in total value) are expected to be declared. Employees are required to declare and fill in the Gifts and Entertainment Form. The Gifts and Entertainment Form is to be endorsed by the department head. The form and the gift are to be submitted to the Human Resource department. The form is to be kept and filed by Human Resource department. The access path for Gifts and Entertainment Form can be found in Employee Handbook.
5. Donations and Sponsorships
FWM is permitted to provide donation or sponsorship provided it complies with following:
– ensure such contribution is allowed by applicable laws and all necessary authorization (where required) is obtained;
– be made to well established entities having an adequate organizational structure to guarantee proper administration of the funds; and
– not to be used as a means to cover up an illegal payment or bribery; The Company must ensure that such contribution is recorded in the Company’s books and/or records properly.
FWM shall not make political contribution from the Company’s resources to any political party, political candidate or political campaign. In the event where FWM is to make a political contribution, the prior approval from the Board must be obtained. FWM must ensure that such contribution is properly recorded in the Company’s books and/or records.
6. Facilitation Payments
FWM adopts a strict stance that disallows facilitation payments or other provision made personally to an individual in control or a process or decision. Employees are expected to notify their immediate superior when encountered with any requests for a facilitation payment. In addition, if a payment has been made and employees are unsure of the nature, their immediate superior must be immediately notified and consulted. They must also ensure that the payment has been recorded transparently.
7. Financial Controls
All the transactions and disbursement of monies are required to follow appropriate delineation process and approval matrix. The Company’s internal operational manual illustrates clear responsibilities and approval matrix of authorised officers in the Company to approve its purchase or payment or other expenditure.
8. Non-financial controls
Due diligence shall be undertaken with regards to any service provider intending to act on FWM behalf/ act for FWM. The extent of the due diligence will be risk-based and shall include a bribery risk assessment. Due diligence may include a search through relevant databases, checking for relationships with public officials, and documenting the reasons for choosing one particular service provider over another.
FWM expects all service providers acting on behalf of the Company to contractually agree to refrain from bribery and corruption practices, and to adhere to the Policy. In ensuring that the service providers adhere to industry best practice and accepted standards of behavior, a service provider may be required to complete the Declaration on Anti-Bribery, where deemed necessary. Justification for engagement of a service provider shall be given during the onboarding due diligence process and 2 layers of approval is needed for such engagement.
On the other hand, due diligence and background checks during staff recruitment and on an ongoing basis, to be satisfied that they are fit and proper persons who have the necessary integrity and professionalism particularly on the personnel who will be appointed to a key role where corruption risk has been identified.
9. Managing and Improving Monitoring Framework
Senior management shall:
a) establish, maintain and periodically review its anti-Bribery and anti-corruption programme, which includes clear policies and objectives that adequately address corruption risks, taking into account relevant developments in the legislature as well as evolving industry to ensure the efficiency and effectiveness of the programme;
b} have the oversight of the implementation of compliance controls related to this Policy and conduct regular risk assessment every 3 years and intermittent assessments, when necessary to identify the Bribery and corruption risk potentially affecting FWM;
c) ensure that the lines of authority for personnel tasked with responsibility for overseeing the anti-Bribery and anti-corruption compliance programme is appropriate;
d) ensure that the result of any audit, reviews of risk assessment, control measures and performance are reported to all top-level management, including the Board, and acted upon;
e) ensure all employees and financial planners/advisors are aware and familiar with the policy and the consequences of non-compliance;
f) appoint a personnel/ department to perform internal audit on the anti-Bribery and antic corruption measures in place; and
g) consider an external audit to be performed by a qualified independent third party every 3 year.
10. Record Keeping
FWM shall maintain documentation related to the adequate procedure for 7 years. As a measure to satisfy the requirement of document retention, any disposal of relevant documents will require consent and approval from FWM’s Managing Director. Each department should inform Managing Director and obtain his prior approval for any disposal of relevant documents.
11. Awareness and Training
FWM will conduct awareness and training sessions to all directors, staff and financial planners/advisers on anti-Bribery and anti-corruption on a regular basis. All new directors, staff and financial planners/adviser will be briefed on this Policy as part of their induction programme. Refresher training on anti-Bribery and anti-corruption measures will be held at least once a year.
12. Whistleblowing policy and Reporting Channel
FWM is committed to a high standard of compliance with accounting, financial reporting, internal controls, corporate governance and auditing requirements and any legislation relating thereto. In respect of Whistleblowing policy, as we view our risk level as “Low” there is no requirement of this policy at this juncture.
13. Disciplinary action for non-compliance
Cases of misconduct or gross misconduct will be dealt with according to internal procedure. The procedure is designed to ensure that all staff are dealt with fairly. However, it does not form part of the contract of employment or otherwise have contractual effect. FWM regards bribery and corruption as a serious matter. Non-compliance may lead to disciplinary action, up to and including termination of employment depending on the seriousness of the situation, the Company may decide at its sole discretion. FWM shall notify the relevant regulatory authority if any identified bribery or corruption incidents have been proven beyond reasonable doubt.
Further legal action may also be taken in the event that the FWM’s interests have been harmed as a result of non-compliance. FWM is committed to continually improving its Policy and to develop further integrity measures and enhance its anti-Bribery and anti-corruption procedures.
Any deviation or waiver from this Policy must be approved by the Board. FWM shall make this Policy available to both internal and relevant external parties.
Revised date:16 April 2021