KENANGA ANNUAL REPORT 2019

K E N A N G A I N V E S T M E N T B A N K B E R H A D A n n u a l R e p o r t 2 0 1 9 60 ETHICS AND COMPLIANCE STATEMENT OUR CORE PRINCIPLES AND VALUES Kenanga Investment Bank Berhad and Its Group of Companies (“ the Group ”) have always prioritised the importance of having the right values as the Group believes that good business and ethics go hand in hand. The Group advocates that everyone should ‘do the right thing’; not only because it is the right thing to do but also because the Group takes cognisance of the fact that there are tangible business benefits to be seen when due recognition is given to ethical values. This is further accentuated by the various initiatives undertaken by the government and the regulators that give prominence to ethics and integrity. With this in mind, the Group is mindful that the activities and programmes it undertakes should not only show its commitment to transparency and good governance but that those activities and programmes reflect honesty and trustworthiness in everyday business pursuits. Amidst the widespread of Covid-19, the Group has taken various measures including intensifying digitalization of processes and practices meant to ensure continuous adherence not only to regulatory requirements, but also to ethical principles of the Group. This is a commitment of the Group to stay true to its core values even in trying times, while minimising or eliminating disruptions to business. OUR ROLE AND STRUCTURE Group Regulatory and Corporate Services (“ GRCS ”) division plays a key role in driving the Group's ethical principles and values. In this regard, GRCS sets the tone for overall corporate governance matters and continues to support the Group by ensuring that its business and operations comply with and meet the requirements of all applicable and relevant laws, regulations and guidelines that are issued by the regulators. GRCS also comments and advises on the policies, procedures and controls that ought to be adopted internally in this regard. Beyond that, GRCS also proposes and implements initiatives and efforts that further the agenda of the Group, which are aligned to the Group’s overall philosophy. Following the establishment of the Group Business Ethics and Integrity (“ GBEI ”) department in March 2019, GRCS now consists of the following six (6) departments: • Group Compliance; • Group Financial Crime Intelligence; • Group Prudential Supervision & Regulatory Affairs; • Group Legal; • Group Company Secretarial; and • GBEI. GRCS independently reports directly to the Board of Directors (“ Board ”) in light of the critical role it plays and the nature of its function. OUR EMPHASIS ON ETHICS AND INTEGRITY The setting up of GBEI is a further demonstration of the Group’s commitment to emphasise the importance of ethics and integrity and to instil those standards throughout the organisation. With the support of the Management, GBEI undertook various measures to lay the foundation and the groundwork to what will chart the Group’s strategy on ethics and integrity in the years to come, as well as the framework for all the initiatives that GBEI will carry out in the near term. The following measures undertaken by GBEI in 2019 have been deliberated and endorsed by the Board of the entities within the Group and Senior Management: • Group Business Ethics and Integrity Charter In August 2019, the Board approved the GBEI Charter (“ Charter ”) which introduces the common best practices approach towards the effective management of ethics risk and the manner in which the Board and the employees of the Group must come together towards addressing ethical issues. The Charter specifies the high-level principles adopted by the Group in relation to ethics risk management.