Policy for the Protection of Whistleblowers

Transcription

1 Policy for the Protection of Whistleblowers KBC Fund Management Static Data Version 4.0 Last Updated 01/10/2013 Classification Internal Ownership Department Compliance Department Head Compliance Author Compliance Process Process Supporting processes - Corporate Compliance Compliance Domain Ethics & Fraud Process Owner Compliance Approval and review Approved by Date Approval 18/11/2013 KBC FM Board of Directors Reviewed By Short Description KBC FM wants to create and foster a corporate culture characterized by honesty and openness, where all employees (the "whistleblowers") have the opportunity to report potential fraud or other gross malpractice as early as possible without fear of reprisal and where whistleblowers have the assurance that they will receive fair treatment and that their concerns will be investigated properly. Performance Empowerment Accountability Responsiveness Local embeddedness All rights reserved Page 1 of 8

2 KBC Fund Management 1 TABLE OF CONTENTS 1 TABLE OF CONTENTS BASIC PRINCIPLES PURPOSE AND SCOPE PRINCIPLE 1 REPORTING: MULTIPLE CONTACT POINTS" PRINCIPLE 2 CENTRALISATION POINT: COMPLIANCE PRINCIPLE 3 INVESTIGATION: SINGLE POINT OF INVESTIGATION PRINCIPLE 4 GUARANTEE OF CONFIDENTIALITY AND OBJECTIVENESS PRINCIPLE 5 PROTECTION OF THE WHISTLEBLOWER PRINCIPLE 6 PROTECTION OF THE PERSON ABOUT WHOM CONCERNS ARE REPORTED PRINCIPLE 7 SPECIFIC PROCEDURE FOR REPORTING FRAUD AND MALPRACTICE CONCERNS PRINCIPLE 8 COMMUNICATION AND IMPLEMENTATION PRINCIPLE 9 MONITORING AND REPORTING... 8 All rights reserved Page 2 of 8

3 KBC Fund Management 2 BASIC PRINCIPLES KBC Fund Management. ( KBC FM ) expects its employees to observe the terms of their contracts of employment in a loyal, co-operative manner and in good faith. This general duty of care also encompasses the basic moral obligation to report any reasonable suspicion that another employee might be guilty of fraud or gross malpractice. The implementation of a procedure for the protection of whistleblowers also takes account of various regulations, international standards and basic principles of corporate governance. This policy applies to everyone employed by KBC FM under contract and also to external parties who work with KBC FM. For this reason, KBC FM wants to create and foster a corporate culture characterised by honesty and openness, where all employees (the "whistleblowers") have the opportunity to report potential fraud or other gross malpractice as early as possible without fear of reprisal and where whistleblowers have the assurance that they will receive fair treatment and that their concerns will be investigated properly. In this regard, KBC FM formally endorses the following basic principles: 1. Employees who have reasonable grounds to suspect that fraud or gross malpractice has occurred or may occur must be given the opportunity to report their concerns, in keeping with this procedure. 2. All reported concerns regarding fraud or gross malpractice must be treated objectively and in strictest confidence. 3. Specially trained personnel must investigate all reported concerns regarding fraud or gross malpractice thoroughly, fairly and objectively within a reasonable period of time. 4. Persons reporting concerns regarding fraud or gross malpractice will not suffer any detrimental or negative consequences as a result of their disclosures, when made in good faith. 5. The rights of persons about whom concerns are reported must be safeguarded and respected. 6. Absolute preference is given to reports by an identified individual (yet which remain confidential) rather than anonymous reports, which are actively discouraged. Employees must refrain from abusing the reporting procedure and thereby deliberately harming another. Where subsequent investigation reveals that it can be proven that the accusations were made with malicious or slanderous intent, appropriate sanctions may apply (these may extend to dismissal for cause, where justified in accordance with work rules and applicable legislation). Unless otherwise regulated by law, employees must at all times observe the procedure set out below. All rights reserved Page 3 of 8

4 KBC Fund Management 3 PURPOSE AND SCOPE This procedure applies to all types of fraud and gross malpractice relating to gross violations or gross infringements of internal rules (such as the work rules, the code of conduct for the employees of KBC FM, the code of conduct for the use of means of communication and inhouse instructions) as well as external rules (legislation, accounting standards, government regulations, or rules on market abuse, insider dealing, breaches of bank secrecy, money laundering, theft, fraud, corruption, bribery, etc.). This procedure extends to all gross malpractice, whether general, operational or financial in nature, including possible serious irregularities in financial reporting and other matters. Compliance with this procedure is compulsory worldwide and it applies with immediate effect to all employees of KBC FM. 4 PRINCIPLE 1 REPORTING: MULTIPLE CONTACT POINTS" KBC FM encourages all employees to discuss any specific concerns with their immediate superior (line management) first before resorting to the possibilities set out in this procedure. All line managers must ensure that all concerns reported benefit from the same guarantees as set out in this procedure. If this is not possible, or when discussions with line management do not produce a satisfactory solution, multiple contact points must be available to allow a whistleblower to report his/her concerns. These multiple contact points must include at least the following departments or persons, as appropriate, locally as well as at KBC group level: the compliance department the internal audit department, including the inspection unit the value and risk management department the CEO of the entity concerned the CEO of the parent company the chairman of the Audit, Risk and Compliance Committee the chairman of the Board of Directors. Details of the contact points within KBC FM and KBC Asset Management (KBC FM s parent company) are given in an Appendix to this procedure (for internal use only). Concerns about fraud or malpractice may be reported through all possible channels of communication (by letter, , phone, personal discussion, etc.). For the sake of the thoroughness of investigations and with a view to protecting all those concerned and avoiding a culture of anonymous reporting, absolute preference is given to All rights reserved Page 4 of 8

5 KBC Fund Management confidential reporting by identified individuals. If circumstances so require, concerns may be reported anonymously, but this is actively discouraged. Any anonymous reports will be investigated extremely critically on account of their specific nature. 5 PRINCIPLE 2 CENTRALISATION POINT: COMPLIANCE The compliance unit of KBC FM will be the centralisation point for all reports and files. All the contact points referred to in the Appendix to the Whistleblower Policy will immediately forward reports received to the compliance unit of KBC FM. Compliance will immediately notify Group Compliance (Ethics and Fraud Unit) accordingly via the central mailbox: reporting@kbc.be Compliance will monitor all files and developments in all cases, and will accordingly be informed by the single point of investigation at regular intervals (see next point). 6 PRINCIPLE 3 INVESTIGATION: SINGLE POINT OF INVESTIGATION One department will be appointed as the single point of investigation. Group Compliance is the single point of investigation for KBC FM: Group Compliance Ethics and Fraud Unit reporting@kbc.be This department is responsible for, inter alia: 1. conducting specific investigations or having them conducted immediately in order to determine as quickly as possible whether the concerns that have been reported are well founded; 2. reporting to management (Executive Committee, Audit, Risk and Compliance Committee, Board of Directors); 3. keeping the whistleblower informed or having him/her kept informed of the progress of the investigation, unless this might harm the whistleblower or hinder the investigation. The whistleblower is entitled to access the personal information that relates to him/her. However, this right may be restricted due to the rights of other parties, in the interests of the investigation or in the legal interests of the entity concerned. The whistleblower's right does not, however, extend to taking copies of documents or other material relating to the investigation or the findings and measures taken; 4. ensuring that the identity of the whistleblower is kept secret (the source may not be disclosed), unless the whistleblower expressly consents to having his/her identity revealed or unless this is required by law (for instance, in the case of a judicial inquiry). This does not, however, prevent the whistleblower from being questioned on the matters reported, in the same way as the other parties concerned; 5. reporting facts that must be reported to official bodies. Where appropriate, a complaint may be lodged with the competent government authorities; 6. safeguarding the rights of the person about whom concerns are reported. All rights reserved Page 5 of 8

6 KBC Fund Management Investigators are subject to strict ethical rules, particularly with regard to observing due discretion and displaying the necessary reserve. Every employee is required to co-operate in good faith with these investigations. In exceptional cases, Group Compliance may decide that the investigation should be carried out by an independent investigation unit at head office, or by external investigators. In the latter case, a special agreement shall be drawn up, including all the basic principles of this policy and a specific confidentiality agreement. 7 PRINCIPLE 4 GUARANTEE OF CONFIDENTIALITY AND OBJECTIVENESS Management is responsible for ensuring that all concerns are treated fairly, objectively and in strictest confidence and that they are thoroughly and fairly investigated by specially trained personnel within a reasonable period of time. Those responsible for fraud or malpractice will be subject to appropriate penalties commensurate with the gravity of the facts, as set out in the work rules. 8 PRINCIPLE 5 PROTECTION OF THE WHISTLEBLOWER KBC FM guarantees that whistleblowers who report suspected fraud or gross malpractice in good faith will suffer no detrimental or negative consequences whatsoever as a result of disclosing those concerns, in keeping with this procedure. If they do, whistleblowers may have recourse to the person they have reported to, or if they want to take the matter further, directly to the President of the Management Committee, the Audit, Risk and Compliance Committee or the Board of Directors. It goes without saying that any directive prohibiting an employee from disclosing concerns in keeping with this procedure is wholly inadmissible. Reprisals for reporting concerns are to be considered a serious violation of this procedure. If this happens, appropriate action will be taken to safeguard the position of the whistleblower. An employee (agent, external party) reporting in bad faith will not be entitled to the protection afforded under this procedure. All rights reserved Page 6 of 8

7 KBC Fund Management 9 PRINCIPLE 6 PROTECTION OF THE PERSON ABOUT WHOM CONCERNS ARE REPORTED KBC FM guarantees that the person about whom concerns are reported will be protected in the sense that it will seek to strike a balance between the interests and rights of the various parties concerned, including the right of KBC FM to investigate the facts. The person about whom concerns are reported is entitled to information (name of the entity responsible for the data processing, what he/she is accused of, and the recipients of this information) and is also entitled to access, correct and remove information relating to him/her that is incomplete or inaccurate, in accordance with the data protection rules. The rights of the person concerned do not, however, extend to taking copies of documents or other material relating to the investigation or the findings and measures taken. The exercise of these rights may be postponed to avoid hampering the investigation or restricted in order to safeguard the rights of others concerned. The decision on whether or not these rights should be restricted will be made on a case-by-case basis. In any event, confidentiality must be maintained and the whistleblower s anonymity guaranteed in good faith, unless there is a legal requirement to do otherwise. 10 PRINCIPLE 7 SPECIFIC PROCEDURE FOR REPORTING FRAUD AND MALPRACTICE CONCERNS In order to make it possible to conduct a thorough investigation, whistleblowers should, insofar as possible, provide the following information in their reports: the identity and contact details of the whistleblower a description of the case, with all known relevant facts (what happened, where, what specific behaviour gave rise to the concerns being reported, who is involved, etc.) an indication of why the matter is being reported an indication of whether the matter has already happened or may happen in the future an indication of how the whistleblower obtained his/her knowledge of the incident or situation whether there are other persons involved or witnesses whether the whistleblower has any supporting information whether the whistleblower has discussed the matter with anyone else, and if so with whom an estimate of the amounts that might be involved the name of the entity where the matter occurred. The above does not imply that fraud or gross malpractice cannot be reported even if the concrete facts are not known in detail. In obtaining the information, the whistleblower must comply with all statutory and regulatory standards and in-house guidelines. All rights reserved Page 7 of 8

8 KBC Fund Management 11 PRINCIPLE 8 COMMUNICATION AND IMPLEMENTATION This procedure complies with KBC Group Compliance Rule No. 14 for the protection of whistleblowers within the KBC Group. The procedure applies to all employees of KBC FM and all external parties who work with KBC FM. The procedure forms part of the Code of Conduct for KBC FM staff and is published on the KBC FM intranet. 12 PRINCIPLE 9 MONITORING AND REPORTING The results of investigations will be reported in accordance with the standard reporting lines for investigations of fraud or malpractice (line management, human resources department, legal department, etc.). Compliance is responsible for monitoring the implementation of these standards and shall report to Group Compliance in this respect at regular intervals where appropriate. This version of the Protection of Whistleblowers Policy has been: - approved by the Management Committee of KBC FM on 10 October approved by the Board of Directors of KBC FM on 18 November 2013 All rights reserved Page 8 of 8