KENANGA ANNUAL REPORT 2018

59 ANNUAL REPORT 2018 ETHICS AND COMPLIANCE STATEMENT While being subjected to close regulatory scrutiny, constant evolution of regulations, technological developments, rapidly growing markets and complex business structures, we continue to enhance our efforts to strengthen our ability to combat financial crime. We have also invested in the use of management information system for a timely detection, monitoring and reporting of suspicious activities. With this milestone, we are also ensuring adherence to Bank Negara Malaysia and the Securities Commission Malaysia’s expectations on the Risk-Based Approach and Management. Processes and monitoring standards are also being continuously enhanced to be in line with best practices and be able to better respond to any potential money laundering and terrorism financing threats. • Anti-Fraud Policy The Group is fully committed to carrying out its business with loyalty, fairness, transparency, honesty and integrity and strives to combat fraud, bribery and corruption in any form of manifestation that can be identified. We aim at preventing and deterring any unlawful or irregular behaviours, conducts, practices, deeds and omissions amounting to actual and or attempted fraud, corruption or bribery from occurring in the Group. In line with the above commitment, the Group Anti-Fraud, Bribery and Corruption Policy provides the guidance for recognition of the various forms and illustrations of fraud, understand their responsibilities and be able to deal with improper solicitation, fraud, corrupt and bribery related activities and issues that may arise in the course of work diligently. As ethics and integrity are the fundamentals to the upholding of a fraud-free environment, the Group constantly emphasises these values and in that regard, numerous programmes and initiatives have been put in place to reinforce the values amongst employees. • Whistleblowing Policy We promote a culture of constructive challenge by instilling a sense of belonging in an individual employee with the end objective of collectively safeguarding interest of the Group and our clients. To this effect, the Group Whistleblowing Policy & Guidance Notes provides a formal framework and multiple channels for all employees to raise concerns and report illegal or unethical practices encountered within their workplace. • Chinese Wall and Insider Trading We play a pivotal role not only in the protection of our clients’ interests but also in maintaining integrity of the capital markets industry at large. Towards this, we have implemented the Group Chinese Wall Policy as an effort to control the flow of confidential information and material non-public price-sensitive information of the Group. This also serves to avoid the risk of possible breach of insider trading provisions, protect client confidentiality and manage conflict of interest. Effective implementation of the Policy minimises the risk of a conflict between the Group’s interests and duties to our clients, and avoid any party from gaining an unfair advantage over the rest of the market. • Conflict Management The Group’s Conflict Management Policy requires the relevant stakeholders to be adequately informed about any conflict of interest that may affect provision of a financial service by KIBB. Appropriate disclosures in a clear, concise and effective manner are required allowing the stakeholders to make an informed decision taking into consideration instances where a conflict may affect a particular engagement.