KENANGA ANNUAL REPORT 2019

H OW W E A R E G O V E R N E D 1 2 3 4 5 65 6 7 Pursuant to the Group Competition Act Compliance Policy, employees and directors are prohibited from engaging in any anti-competitive practices. The Policy governs the manner in which the Group deals with various third parties including its competitors, clients, and vendors. Examples of anti-competitive practices includes the following: - Disclosing or sharing any information on the Group or matters related with its proposals with a competitor; - Entering into any form of agreement with a competitor to fix prices or terms on pricing, form cartels or collusion in relation to tender or procurement exercises or allocate markets, sales territories or clients; and - Adopting strategies to illegally exclude competitors from the market. • Common Reporting Standard (“CRS”) In compliance with the CRS requirement, the second submission of financial account information of non- residents clients of the Group was submitted to the Inland Revenue Board of Malaysia (“ IRBM ”) in August 2019. The submission involved 64 entities and funds of the Group registered with the IRBM for CRS purposes. RAISING AWARENESS THROUGH ENHANCED ENGAGEMENTS, EDUCATION & GUIDANCE • 4 th Annual Regulatory Seminar The Group organised the fourth (4 th ) Annual Regulatory Seminar (“ the Seminar ”) on 18 March 2019 with the theme ‘Digital Ethics – Striving for a Value-Based Culture’. The Seminar was approved by the Securities Industry Development Corporation as part of the Continuing Professional Education (“ CPE ”) with an allocation of 10 CPE points, as well as the Federation of Investment Managers Malaysia as part of its Continuing Professional Development with an allocation of eight (8) points. The Seminar was designed to provide the latest updates, developments and trends in legal and regulatory landscape and the impact on the investment banking business with a particular focus on ethics, as well as technology. The target audience of the Seminar was the members of the Board and Senior Management, as well as the Heads of Divisions, Departments and Branches. In total, 104 participants joined the Seminar. Apart from employees from various divisions and departments who speak on subject-matters in their respective areas; the Seminar also had speakers from the Malaysian Anti-Corruption Commission and Bursa Malaysia Berhad. They shared updates on the amendments in law relating to corporate liability and how this in turn will enhance corporate governance, as well as regulatory expectations in the digital era. • 3 rd Fraud Awareness Campaign The year 2019 also saw the Group continuing its anti-fraud awareness message and highlighting the importance of an anti-fraud culture with the successful Fraud Awareness Campaign (“ FAC ”) for the third (3 rd ) time which kicked-off on 21 October 2019. As per the previous editions of the FAC, numerous activities were organised throughout the campaign period with the FAC culminating in the Group’s Fraud Awareness Week (“ FAW ”) which ran from 18 November 2019 to 22 November 2019. The FAW coincided with the International FAW organised by the Association of Certified Fraud Examiners (“ ACFE ”) of which the Group is a Corporate Alliance Partner. As per the previous years, the highlight of the FAC was the interactive, engaging and exciting games that were held to raise fraud awareness in an unconventional manner by humanising learning and making it appealing to everyone. These games emphasised and carried the message on the importance of fraud detection and prevention and stressed the need to inculcate an anti-fraud culture in everyday practices at work. Participants in the games from within the Group included teams comprising of employees of various levels and from different departments and divisions. Recognising that the fight against fraud is ultimately a collaborative effort, the games also had participation of 22 external teams including those from regulators, professional bodies, as well as other capital market participants. ETHICS AND COMPLIANCE STATEMENT