CLIENT FIRST POLICY

Group 2
 How does the PSE protect my
rights as an Investor?
 Self Regulatory Organization Status
 Customer First Policy
 Risk Based Capital Adequacy
 Disclosure Rules
 Advanced Warning and Control System
 Market Integrity Board
 Securities Investor Protection Fund
 Trading for One’s Personal
Account (IRR)
 don’t abuse or put customers at disadvantage
 transact only through their firm
 maintain one personal dealing account, and only
with his firm which should be under his real
name
 prior written approval of firm’s AP
 won’t open joint or solo account with any person
in any other BD
 Trading for One’s Personal
Account (IRR)
 ensure sufficient funds exist to cover the
transaction
 certificates or shares of stock are available for
immediate delivery
 switches are immediately corrected
 Order Ticket Rule followed
 T/SM ID or account number reflected in
inputting orders for their own account
 CONFIRMATION OF
CUSTOMER ORDERS (IRR)
 Send the customer a written confirmation of purchases and sales
as promptly as possible on the day on which they are made
 employee or salesman is NOT authorized to accept a
confirmation on behalf of a customer
 give clients the option to choose whether confirmation will be
done by way of courier, facsimile, or electronic mail
 for fax & email, client should attest accuracy of confirmation by
replying back via fax or email not later than 12:00pm of the
next business day
 keep a printout of such reply together with the file notifications
and transaction data being confirmed
 CLIENT AGREEMENT (IRR)
 Ensure that a written agreement is entered into with a client before any service is
provided to that client
 should be in a language understood by the client
 explained by the salesperson who deal directly with the client
 contains the following information:
 full name and address of the client
 full name and address of the BD
 BD’s registration status
 undertaking by BD and client to notify the other of any material change in the
information given
 description of nature of services available to the client
 description of any remuneration
 client’s authorization to pledge his securities
 risk disclosure statement
 Customer Account Information
Form (CAIF)
 Provide the minimum information needed
 special rules are provided for trust accounts,
more than one party, and numbered accounts
 practice the KYC as prescribed under AMLA
 BD should develop clear customer acceptance
policies and procedures and adopt adequate
internal control measures
 anonymous accounts, accounts under fictitious
name is absolutely prohibited
 Customer Account Information
Form (CAIF)
 numbered accounts are allowed provided
ultimate owner is clearly identified in CAIF
 BD cannot create new accounts without face-to-
face meeting
 BD is primarily responsible in keeping current all
material information contained in the CAIF
 BD, its directors, officers, and APS are required
to report any suspicious client transaction to
AMLC