ADVISER BUSINESS STATEMENT

Size: px

Start display at page:

Download "ADVISER BUSINESS STATEMENT"

Edmund Bailey
6 years ago
Views:

1 ADVISER BUSINESS STATEMENT This Advisor Business Statement is for Benny WONG (Songyuan HUANG) FSP Address: Level 10, Tower Queen Street PO Box Auckland, New Zealand DDI: Fax: benny.w@kvbkunlun.com Trading name: KVB Kunlun New Zealand Limited This document is updated on: 18 February 2015 Role KVB Kunlun New Zealand Limited ( KVB ) has been operating since It forms part of the KVB Kunlun Holdings Limited Group of Companies. KVB provides margin trading service and Securities dealing to private investors, institutions and corporations. KVB Kunlun New Zealand Limited is an Authorised Futures Dealer On Exchange and Off Exchange, pursuant to the Securities Markets Act 1988 and is an NZX Advising Firm. KVB Kunlun is regulated in New Zealand by the Financial Market Authority 1 and the New Zealand Exchange (NZX). For the leveraged margin trading business, clients can trade currencies, indexes and commodities through online trading system. For securities trading, KVB passes client orders and trades to other brokers. Currently KVB Kunlun NZ Ltd has about 30 employees, two of whom are Authorised Financial Advisors and a number of whom are Registered Financial Advisors. I am an Authorised Financial Advisor working for KVB and employed in the position of Director- Global Margin Business. My main responsibilities include managing KVB s trading activities with our counterparties (mainly major banks) in the Dealing Room and engaging in the promotion and development of the Margin Trading global market. My other responsibilities include research and development of the new products and company services. As my focus is within KVB s trading activity and the development of future business, I rarely communicate directly with my clients on daily basis. If I do give advice, most of my opinions and recommendations are class related. My advice is dispensed to clients through telephone, s, the company s website and at seminars. At times, I may state my opinion on a particular currency 1 The Financial Market Authority s role in authorizing futures dealers is limited and does not imply approval or endorsement of the business, trading or solvency of the company; and the Financial Market Authority has not approved the Client Services Agreement or any disclosure documents of the company. Page 1 of 5

2 or security but this is not or part of an investment planning service. I do not provide a discretionary investment management service at this moment but may opt for it in future when the opportunities are optimum for such business development. Remuneration and reward My remuneration consists of a fixed salary and a performance related bonus. I do not receive commissions or payment from any counterparts or business relationships. It is possible that my bonus may be calculated based on our company s profit or trading volume, however, this does not generate conflict of interest to clients in terms of the way that I am paid by the company. Business relationships The margin trading business of KVB uses counterparties with the ANZ Bank, Citibank, Deutsche Bank, SAXO Bank and other banks or financial institutions to offset positions. KVB also has business relationships under different entities within the KVB Group. KVB s securitiestrading for clients is conducted through Interactive Brokers (for international security trading), ANZ Securities (for NZ security trading) and KVB Kunlun Securities (HK) Ltd (for HK security trading). KVB receives commission from Interactive Brokers and ANZ Securities for trades done with these two companies. KVB external counterparties are reputable banks or financial institutions and KVB maintains good business relationships with them. There is no conflict of interest to clients identified in any trading that is undertaken with these counterparties. Products and services KVB offers financial products in Category 1 as described in the Part1, Section 5 of the Financial Advisors Act 2008 ( the Act ) margin trading and securities trading. Through my research and analysis, I may give clients my opinion and recommendation on which currencies/securities to invest in. KVB does not offer Category 2 products as described in the Act. Clients The majority of KVB clients are retail clients although at times we may have wholesales clients. The majority of KVB clients are individuals. We do have a small amount clients whoa re not natural persons, e.g. companies or trusts. KVB clients are mainly overseas Chinese or Chinese living in China with personal wealth. Clients enter into a business relationship with KVB by signing the Client Services Agreement, thereby accepting KVB s terms and conditions. KVB attracts new clients through advertisements in local newspapers, marketing and promotion activates, referrals and seminars. I assist the Marketing Department to arrange such marketing activities. Ethical behavior Page 2 of 5

3 I declare that I have not been: convicted of an offence under the Securities Markets Act 1988, the Securities Act 1978 or any act of a crime involving dishonesty; a principal officer of a body corporate at the time when that body corporate committed one of these offences; adjudicated bankrupt; prohibited by a law or a court from taking part in the management of a company of a business; the subject of an adverse finding by a court in any civil or criminal court action that has been taken against the adviser in their professional capacity expelled from, or been prohibited from being a member of, a professional body. As a KVB advisor I comply with the Code of Professional Conduct and the requirements of the Code. I also adhere to KVB Kunlun Group Code of Conduct, Compliance Manual and other KVB internal policy and procedures. Furthermore, I am subject to the Code of Ethics & Standards of Professional Conduct of CFA Institute. The above mentioned documents have relevant part to play regarding the ethical behavior which I am determined to abide by. They are closely monitored by the Compliance department of KVB and the relevant professional bodies. Marketing and branding Marketing and branding activities are initiated by the KVB Business Unit or the Marketing Team. The Marketing Team is then responsible for design, publication of the advertisement or other promotion activities. To ensure complete compliance, all advertisements, marketing materials and the terms and conditions of the activities are approved by the Compliance Department before publication. Disclosure I comply with the disclosure obligations under the Financial Advisors Act 2008 and its associated regulations. I provide my disclosure statement before or at the time of my first client meeting or as soon as practically possible and talk through the disclosures with the client to ensure they have read and understood them. I review my disclosure statement annually and on an ad hoc basis when there are any material changes in content. Where my disclosure statement is out of date I provide clients with a new disclosure statement, or provide a supplementary disclosure statement if applicable, before providing any further financial adviser services. My Disclosure Statement contains all the required information from my authorization and the Financial Advisor Act, including all fee schedules which a client may be charged to. My Disclosure Statement is also reviewed by the KVB Compliance Department annually. Advice or service I collect financial market information through the internet, industry newsletters or subscribed sources like Bloombergs or Reuters. I analyze this information to form my own opinions. In discussion with clients about their circumstances, I recommend the best options in the client s interests. Page 3 of 5

4 Complaints KVB handles complaints according to our Complaints Procedure as per the Company policy Complaint Handling and Disputes Resolution Procedure Manual. Any written complaints received are forwarded upon receipt to the Compliance Officer. KVB Sales Staff or Compliance will acknowledge receipt within 3 working day. The Compliance Officer makes all necessary efforts to respond to the complaint within 20 working days. A written reply is sent from KVB to the complainant stating the outcome of the review and resolutions. KVB Compliance Officers maintain the Complaint Register and send to the Head of Legal, Risk & Compliance on a monthly basis. Any complaints of a serious nature are reported to the CEO when received. KVB Kunlun endeavours to quickly and satisfactorily resolve all complaints. In the event that the Client is not satisfied, clients are advised that they may address their complaint in writing to: The Compliance Manager KVB Kunlun New Zealand Limited Level 10, The National Bank Tower 205 Queen Street PO Box Auckland, New Zealand Phone: complaint@kvbkunlun.com Pursuant to the Financial Service Providers (Registration and Dispute Resolution) Act 2008, KVB is a member of Financial Dispute Resolution (FDR). If the Client is not satisfied with KVB Kunlun s response to their complaint, they are advised that they may refer the complaint to our External Dispute Resolution Scheme, by contacting: Financial Dispute Resolution Freephone Freepost PO Box 5730, Wellington enquiries@fdr.org.nz Web: Client money, property and information KVB handles client s funds strictly in accordance with the provisions of the KVB Client Services Agreement and as permitted by the Futures Industry (Client Funds) Regulations (1990). Client s funds are held in segregated client bank accounts with ANZ National Bank. KVB does not operate a separate client trust account. The records of client money and property received, held and disbursed or distributed, are audited by the Compliance Reporter as required by the FMA and by NZX compliance. KVB has appointed PricewaterhouseCoopers (PwC) to act as its Compliance Reporter. For securities, KVB also adheres to NZX Participant Rules whereby client trading money is immediately passed to KVB counterparties. KVB has independent audits regularly carried out by Page 4 of 5

5 the international accounting firm PwC. This ensures all aspects of the KVB handling of Client money and assets meet the requirements of the Regulations and Rules. While KVB handle client funds as a broker, I am not involved in this process. All aspects of client funds are handled independently of the advisers by the Operations/Accounting Department. Record keeping Clients can access via an online system or receive via a copy of their statement showing their trading record on a daily basis. Copies/scanned copies of our client statements/transaction records are kept offsite in storage or a data center for a minimum of seven years. KVB s accounting records contain entries of all client money received by or in the possession or control of KVB. Records of all payments and disbursements of client money and property are also maintained for a minimum of seven years. Client identification records/client s files are retained for at least seven years from the date at which the relationship with the client ended, or the last transaction was entered into on his/her behalf. The KVB IT Team has a Back Up and Disaster Recovery Plan and this is tested periodically. Every few weeks KVB client s documents will be off-sited to the storage room and they are also scanned electronically and stored in the data centre. Competence, knowledge and skills and continuing professional training I have degrees in Accounting, an MBA and I am also a registered CFA and AFA. I am bound by, the Financial Advisers Act, NZX Participant Rules, Regulation, Code of Conduct and company policy and procedures which include standards in relation to character, qualifications, experience, conduct, disclosures to clients, duty of care, handling of conflicts of interest and good practice. I keep my business knowledge up-to-date through daily involvement in and observation of the financial markets, reading research reports, economic information, and general articles on investment and investment products. I also work in a team with a group of professionals who are highly skilled and qualified. I attend relevant industry seminars and courses when they are available. I also have a continuing development plan to ensure my up-to-date competence, knowledge and skills. Page 5 of 5

KVB Kunlun Securities (NZ) Ltd Level 10, Tower One 205 Queen Street Auckland New Zealand Tel: Fax:

KVB Kunlun Securities (NZ) Ltd Level 10, Tower One Auckland New Zealand Tel: +64 9 3598988 Fax: +64 9 3598989 www.kvbkunlun.com 17 February 2017 BROKER S DISCLOSURE STATEMENT KVB Kunlun Securities (NZ)