KENANGA ANNUAL REPORT 2017

STRATEGIC PRIORITIES FOR 2018 • Managing Reputational, Culture and Conduct Risks We acknowledge the need to strengthen the regulatory framework thus will remain vigilant to the regulatory developments in order to ensure proper planning in formulating viable and effective plans. In this respect, we recognise the importance of proactive engagement with the regulators to facilitate understanding and proper implementation of the regulatory requirements. Thus, we would strive to build and maintain positive relationships with all regulators to meet common objectives of creating ethical and compliance business environment. This would help us stay on the right side of regulators and to breed the right mindset internally. • Meeting Regulatory Compliance and Standards We understand the demeaning impact, which may come with the developments of business on the ethics and compliance values. Thus, we will continue to promulgate the importance of subscribing to the required ethical and compliance values in business conduct, not only through adoption and implementation of necessary policies, procedures and practices, but also through continuous education and awareness programmes tailored to the needs and requirements affecting all employees of the Group. • Enhancing Data and Cyber Security We would enhance governance in the area of cyber security to avoid, detect, counteract, or minimise security risks to physical property, information, computer systems, or other assets. This would significantly involve monitoring and anticipating the trend of cyber threats by Group Technology and subsequent implementation of required control measures. • Recruiting and Retaining Key Talents We would continue to recruit new and retain experienced employees to fill in the pool of talents in ethics and regulatory compliance areas, particularly specialised in Investment Banking knowledge. This would in turn support the continuity of qualified ethics and compliance officers hence promotes sustainability of the capital markets industry. • Managing Threat of Financial Crime As the market grows, business is expected to develop, bringing in the introduction of new and complex structures, which would often involve deployment of new technologies and systems. While such developments would thrive the markets, further strengthening of the regulatory framework is also necessary to continue maintaining an orderly and fair market conduct. Thus, the Group recognises the need for appropriate regulatory requirements and would continue to support regulators’ efforts to regulate conduct of business and financial crimes in order to maintain integrity of the capital market industry. FORWARD LOOKING STATEMENT We recognise that ethical and compliance business conduct are the collective responsibility of the Board, Senior Management and every employee of KIBB Group. Thus, continuous communications and collaborations amongst all are the key factors in working towards sustaining ethical and compliance consistency in developing business environment. This objective could only be achieved with concerted efforts and support from all within the Group. Through a comprehensive approach in managing compliance risk in the entire compliance lifecycle, we continue to be committed to maintaining a culture of strong and sound regulatory compliance and governance, with corporate consciousness being naturally instilled in our DNA. Annual Report 2017 55 ethics and compliance statement