Conflict Of Interest Policy

Ver 1.1 2023

CONFLICT OF INTEREST POLICY

1. INTRODUCTORY PROVISIONS

In line with the duties of a provider in accordance with BN 80 of 2003 General Code of Conduct for Authorised Financial Services Providers and Representatives [As amended by Board Notice 43 of 14 May 2008]. General Provisions of Specific duties of provider in paragraph 3 (1) (b) Traze (Pty) Ltd being the provider must disclose to the client the existence of any personal interest in the relevant service, or of any circumstance which gives rise to an actual or potential conflict of interest in relation to such service, and take all reasonable steps to ensure fair treatment of the client:

Paragraph 3 (1) (c) non-cash incentives offered and/or other indirect consideration payable by another provider, a product supplier or any other person to the provider could be viewed as a potential conflict of interest (d) the service must be rendered in accordance with the contractual relationship and reasonable requests or instructions of the client, which must be executed as soon as reasonably possible and with due regard to the interests of the client which must be accorded appropriate priority over any interests of the provider.

 

2. PURPOSE AND APPLICATION

In line with General duties of a Provider, a provider must at all times render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry to manage conflict of interests.

The purpose and application of the Policy is to control and regulate potential conflict of interest which may prejudice the Client as pertains to non-cash incentives indirect or direct by a provider, a product supplier or any personnel rendering financial advisory and intermediary services on behalf of Traze (Pty) Ltd. 

 

3. CONLIFCT OF INTEREST IDENTIFICATION

3.1 A conflict of interest implies an abuse which either actual, apparent, or potential- of the trust that people have in professionals or personnel. Potential compromise of bias in judgement and objectivity as relates to financial interests is considered as a conflict of interest.

3.2 If a professional deems their judgement to be compromised in a situation, the conflict of interest is regarded as apparent. Whereas a situation that may develop into an actual conflict of interest may be regarded as a potential conflict of interest involves.

3.3 A conflict of interest implies only the potential for bias, not likelihood. A conflict of interest exists whether decisions are affected by a personal interest.

3.4 As Traze (Pty) Ltd the conflict-of-interest Policy is formalised to avoid as far as possible all actual and potential Conflict of Interest.

3.5 When assessing whether a conflict of interest exists or could potentially arise under this Policy, the Company will specifically evaluate if there is a possibility of harming any client. This evaluation will take into consideration the Company itself, as well as any representative, associate, or employee of the Company, and whether they pose a risk of prejudice to the Client by considering the following factors:

3.5.1 Does the Company personnel gain financially, or to what extend is a financial loss mitigated or avoided, at the expense of the client.

3.5.2 Possesses a vested interest in the result of a service rendered to the client or a transaction conducted on behalf of the client, which differs from the client’s own interest in that particular outcome.

3.5.3 Holds a financial or other incentive to prioritize the interests of another client, a group of clients, or any other third party over the interests of the client.

3.5.4 Obtains or will obtain from someone other than the client any form of monetary payment, goods, or services, excluding the legally prescribed commission or a reasonable fee for the service provided.

 

4. INTERNAL CONTROLS, PROCEDURES AND PROCESSES

4.1 Traze (Pty) Ltd will guarantee that its staff, representatives, and, as necessary, partners possess knowledge regarding the content of this Conflict-of-Interest Management Policy. Moreover, the company will arrange for suitable materials for training and education on this matter.

4.2 Traze (Pty) Ltd will consistently oversee adherence to this Conflict-of-Interest

Management Policy and, at the onset of each year, undertake an evaluation of the Policy.

5. LIST OF ASSOSCIATES

Traze (Pty) Ltd does not have any associate (as defined) who qualifies as a Third Party (as defined), and there is no existing or potential conflict of interest involving such associate.

 

6. DECLARATION OF RELATIONSHIPS WITH THIRD PARTIES

Traze (Pty) Ltd and its Representatives do not have any current or potential associations with any Third Party that could potentially impact their ability to fulfill their obligations to a client or hinder Traze (Pty) Ltd or its representatives from providing impartial and equitable financial services to that client or acting in the best interests of the client.

 

7. DECLARATION OF OWNERSHIP INTEREST IN TRAZE (PTY) LTD

7.1 There are no third parties who possess any actual or potential ownership or proprietary stake in Traze (Pty) Ltd’s business that could potentially impact the impartial fulfilment of their obligations to clients or hinder Traze (Pty) Ltd or its representatives from providing unbiased and equitable financial services to clients or acting in their best interests.

7.2 There are no third parties which receive any actual or potential dividends, profit shares, or similar benefits from Traze (Pty) Ltd that arise from any ownership or equity interest. Such interests should not influence the objective performance of their obligations to clients or impede Traze (Pty) Ltd or its representatives from delivering unbiased and fair financial services to clients or acting in their best interests.

 

  1. DECLARATION OF TRAZE (PTY) LTDS OWNERSHIP INTEREST.

    • Neither Traze (Pty) Ltd nor any representative possesses any actual or potential equity or proprietary interest in any third party that could potentially impact the impartial fulfilment of their obligations to clients or hinder Traze (Pty) Ltd or its representatives from providing unbiased and fair financial services to clients or acting in their best interests.

 

  • Neither Traze (Pty) Ltd nor any representative receives any actual or potential dividends, profit shares, or similar benefits derived from any equity or ownership interest in any third party. Such interests should not influence the objective performance of their obligations to clients or impede Traze (Pty) Ltd or its representatives from delivering unbiased and fair financial services to clients or acting in their best interests.

 

9. CONFLICTS OF INTEREST DISCLOSSURE MEAUSURES

9.1 In situations where Traze (Pty) Ltd has assessed the circumstances surrounding a potential conflict of interest and has determined, due to reasons that may have arisen at that time, that it is impracticable to avoid such a conflict, Traze (Pty) Ltd will take reasonable measures at that moment to minimize any adverse impact on the client.

9.2 Under the circumstances mentioned in paragraph 9.1 above, Traze (Pty) Ltd or the respective representative must inform the client about the potential conflict and provide comprehensive details regarding the nature of the possible harm to the client.

9.3 The written communication to the client should also include an explanation of the specific reasons why the conflict of interest cannot be avoided in the given circumstances. Additionally, the client will be requested to provide written confirmation authorizing Traze (Pty) Ltd to proceed or continue acting in the specific matter, as applicable.

 

10.  CONFLICT OF INTEREST MANAGEMENT

10.1 Any inquiries raised by Traze (Pty) Ltd employees regarding potential, actual, apparent or perceived conflicts of interest must be directed to Ronald Gwenzi, the designated individual responsible for identifying and managing such conflicts. The decisions made by the aforementioned Key Individual shall be final and binding.

10.2 Traze (Pty) Ltd will establish and maintain a Gifts Register within the registry and record-keeping system. This register will document all insignificant financial interests declared by each representative to ensure compliance with the specified limitations on immaterial financial interests.

10.3 This Conflict-of-Interest Policy will undergo a formal review annually at the start of the year or whenever changes occur throughout the year.

10.4 This Conflict-of-Interest Policy will be approached comprehensively and will not solely focus on remuneration matters. The policy’s sole objective is to ensure that financial services are consistently provided with honesty, fairness, due skill, care, and diligence, all while safeguarding the clients’ interests and maintaining the integrity of the financial services industry.

10.5 All Key Individuals within the organization will regularly assess the terms and conditions of the business’s relationship with product suppliers and other financial services providers. This assessment aims to identify any potential, apparent, perceived, or actual conflicts of interest and ensure compliance with this Policy by regularly reviewing the preventive measures adopted.

10.6 Key Individuals will bear the responsibility of ensuring that all employees within the organization have a thorough understanding of the concept of conflicts of interest. They will provide suitable training to employees and ensure their adherence to the Policy.

 

11.  FINANCIAL INTERESTS PERMITTED

The subsequent financial interests are permissible and are not considered to constitute any actual or potential conflict of interest:

11.1 Any financial interest in the form of cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration not referred to above, for which a consideration, fair value or remuneration that is reasonably commensurate to the value of the financial, is paid by that provider or representative at the time of receipt thereof.

11.2 Any immaterial financial interest;

11.3 Commission authorised under Long-term Insurance Act, 1998 (Act No.52 of 1998);

11.4 Commission authorised under the Medical Schemes Act, 1998 (Act No. 131 of 1998);

11.5 Commission authorised under the short-term Insurance Act, 1998 (Act No. 53 of 1998);

11.6 Fee for the rendering of a financial service in respect of which commission or fees authorised under the Medical Schemes Act.1998 ( Act No.131 of 1998) are not paid, provided that such fees are specifically agreed to by the client in writing and maybe stopped at the discretion of that client;

11.7 Fee authorised under the Long- term Insurance Act, 1998 (Act No.52 of 1998) if those fees are reasonably commensurate to a service being rendered,

11.8 Fees for the rendering of a financial service in respect of which commissions or fees authorised under the Long- terms Insurance Act, 1998 (Act No. 52 of 1998) are not paid, provided that such fees are specifically agreed to by the client in writing and may be stopped at the discretion of that client;

11.9 Fees authorised under the Short-term Insurance Act, 1998 (Act No. 53 of 1998) if those fees are reasonably commensurate to a service being rendered.

11.10 Fees for the rendering of a financial service in respect of which commission or fees authorised under the Short- term Insurance Act, 1998 (Act No. 53 of 1988) are not paid, provided that the fees are specifically agreed to by the client in writing and may be stopped at the discretion of that client;

11.11 Fees authorised under the Medical Schemes Act.1998 (Act No 131 of 1998), if those fees are reasonably commensurate to a service being rendered.

11.12  Fees of remuneration for the rendering of a service to a third party, which fees or remuneration are reasonably commensurate to the service being rendered;

11.13 Training, that is not excessively available to a select group of providers or representatives, on products and legal matters relating to those products excluding travel and accommodation associated with that training;

11.14  Training, that is not exclusively available to a selected group of providers or representatives, general financial industry information excluding travel and accommodation associated with that training;

11.15  Training, that is not exclusively available to a selected group of providers or representatives, specialised technological systems of a third party necessary for the rendering of a financial service excluding travel and accommodation associated with that training;

12.  PROHIBITED FINANCIAL INTERESTS

Any financial interest outlined below that does not align with the regulations specified in Paragraph 11 (Permitted Financial Interest) is strictly prohibited and cannot be accepted under any circumstances:

12.1 Any Accommodation received from any third party.

12.1 Any Advantage received from any third party.

       12.2       Any Benefit received from any third party.

       12.3       Any Cash Payment received from any third party.

       12.4       Any Cash Equivalent received from any third party.

12.1 Any Discount received from any third party.

       12.2       Any Domestic or Foreign Travel received from any third party.

12.1 Any Gift received from any third party.

       12.2       Any Hospitality received from any third party.

12.1 Any other incentive or valuable consideration received from any third party.

12.1 Any Service received from any third party.

       12.2      Any Sponsorship received from any third party.

       12.3       Any Voucher received from any third party.

The only cases where the restriction on receiving the aforementioned financial interests does not apply are when the total monetary value received in any given calendar year from the same third party does not exceed R1 000 for Traze (Pty) Ltd or does not surpass the amount of R1 000 multiplied by the total number of representatives if received by any or all representatives collectively in a calendar year from the same third party.

 

  1. Customer Communication.

Each Representative will receive remuneration based on the criteria established for each individual case, primarily determined by their individual performance. However, Traze (Pty) Ltd will not provide any form of reward or remuneration to any Representative for:

  • Prioritizing the quantity of business acquired for Traze (Pty) Ltd over the quality of service provided to clients.
  • Favouring a particular product supplier when the Representative has the option to recommend multiple product suppliers to a client.
  • Showing favouritism towards a specific product from a product supplier when the Representative has the option to recommend more than one product from that particular product supplier to a client.

 

14.  CONSEQUENCES OF NON-COMPLIANCE

14.1 If the Board of Directors of Traze (Pty) Ltd has reasonable grounds to suspect that any employee, including the Key Individual, representative, or any legal representative, has not disclosed actual or potential conflicts of interest, the Board shall notify these individuals about the basis for its belief and provide them with an opportunity to clarify the alleged failure to disclose.

14.2 After considering the response of the individuals concerned and conducting any necessary further investigation, if the board or committee determines that the individuals have indeed failed to disclose an actual or potential conflict of interest, appropriate disciplinary and corrective measures will be taken.For this Policy, records on details about costs, speed, likelihood of execution, individual financial instruments and transactions passed through the Electronic Trading Platform shall be maintained for a minimum period of five (5) years and, where requested by the competent authorities, for a period of up to seven (7) years where relevant.

 

15.  DEFINITIONS

Traze (Pty) Ltd is a company established under the provisions of the Companies Act 61 of 1973 and, therefore, the following terms and phrases will hold the following definitions for the purpose of this Policy:

Associate” means:

In the context of Traze (Pty) Ltd, the term “Associate” refers to any entity described in subparagraphs I to VII below, which includes a product supplier, another provider, an associate of a product supplier or provider, a distribution channel, or any person who, under an agreement or arrangement with a product supplier, another provider, or a distribution channel which provides a financial interest to Traze (Pty) Ltd or its representatives. Such an associate may include:

  1. Any juristic person of which the board of directors or, in the case where such juristic person is not a company, of which the governing body is accustomed to act in accordance with the directions or instructions of Traze (Pty) Ltd.
  2. Any holding company of Traze (Pty) Ltd.
  3. Any other Company of which that holding company is a subsidiary.
  4. Any subsidiary company of Traze (Pty) Ltd.
  • Any other subsidiary of any holding company of Traze (Pty) Ltd.
  1. Any person in accordance with whose directions or instructions the board of directors of Traze (Pty) Ltd is accustomed to act. V. Any trust controlled or administered by Traze (Pty) Ltd.

Conflict of interest” means:

Any situation in which the Company or any Representative has an actual or potential interest that may, in rendering a financial service to a Client:

  1. Influence the objective performance of his, her or its obligations to that client; or
  2. Prevent Traze (Pty) Ltd or any representative from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client, including, but not limited to:
    1. A financial interest.
    2. An ownership interest.
  • Any relationship with a third party.

Distribution Channel” means:

  1. Any arrangement between two or more providers or any of their associates, which arrangement facilities, supports or enhances a relationship between Traze (Pty) Ltd or providers and a product supplier.
  2. Any arrangement between a product supplier or any of its associates and one or more providers or any of its associates in terms of which arrangement any support or service is provided to Traze (Pty) Ltd or providers in rendering a financial service to a client.
  3. Any arrangement between two or more product suppliers or any of their associates, which arrangement facilitates, supports or enhances a relationship between a provider or providers and a product supplier.

 

Financial Interest” means:

Any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration, other than A. An ownership interest.

  1. Training, that is not exclusively available to a selected group of providers or representatives, on
  2. Products and legal matters relating to those products.
  3. General financial and industry information.
  • Specialised technological systems of a third party necessary for the rendering of financial service; But excluding travel and accommodation associated with that train.

 

Employee” means:

  1. All employees employed on indefinite term contracts of employment, whether on a full time or part-time basis.
  2. All employees employed on a fixed-term contract of employment/limited duration contract, whether on a full time or part-time basis.
  3. Any person deemed to be an employee of the FSP by virtue of the operation of law in the jurisdiction in which they are employed.

FAIS” means:  

The Financial Advisory and Intermediary Services Act 37 of 2002.

Employee” means:  

  1. All management committee and executive committee members of an FSP.
  2. Directors of an FSP.
  3. Any representative of an FSP.
  4. Any KI approved by the FSCA to manage and oversee compliance of an FSP with the requirements of FAIS.

FAIS Compliance Officer” means:

A compliance officer appointed by an FSP in terms of section 17 of FAIS.

FSP” means:  

A Financial Services Provider

Immaterial financial Interest” means:

Any Financial Interest with a determinable monetary value, the aggregate of which does not exceed R 1000 in any calendar year from the same third party in that calendar year received by:

  1. A provider who is a sole proprietor; or
  2. A representative for that representative’s direct benefit.
  3. A provider, who for its benefit or that of some or all of its representatives, aggregates the immaterial financial interest paid to it representatives.

Ownership Interest” means:

  1. Any equity or proprietary interest, for which fair value was paid by the owner at the time of acquisition, other than equity or any proprietary interest held as an approved nominee on behalf of another person; and
  2. Includes any dividend, profit share or similar benefit derived from that equity or ownership interest.

Third Party” means:

  1. A distribution channel.
  2. Another provider.
  3. A product supplier.
  4. An associate of a product supplier or a provider.
  5. Any person who in terms of an agreement or arrangement with a person referred to in paragraphs A to D above provides a financial interest to a provider or its representatives.

 

16.  CONTACT DETAILS

16.1 For any inquiries or reports of any violation of this Conflicts of Interest Policy, please direct them to:

         Name:                              Ronald Gwenzi

         Email Address:               Ronald.Gwenzi@traze.com

         Cell phone Number:   +27 790 463 207

16.2 All queries and reports will be treated with utmost confidentiality. In cases where an employee of Traze (Pty) Ltd reports a breach of this Policy, Traze (Pty) Ltd will make every effort to safeguard the identity of the reporting employee.

Zeal Holdings Limited Incorporated and registered in British Virgin Islands with Company Registration: 2006432. Zeal Holdings Limited, as a Group is composed of Multiple Brands 100% (Wholly) owned, authorised and regulated in various jurisdictions through the following Subsidiaries:

Traze (Pty) Ltd Company Registration Number: 2016/164943/07 and registered address: Dock Road Junction Cnr Dock Road and Stanley Street V&A Waterfront Cape Town 8001, South Africa. Authorised by the Financial Services Conduct Authority with FSP (Financial Services Provider) Number: 48248. Traze (Pty) Ltd does not carry out any Principal activities and is not an ODP.

Zeal Capital Market (Seychelles) Limited, is regulated as a Securities Dealer by the Financial Services Authority of Seychelles, license number: SD027. Its principal office is at: Office 1, Unit 3, 1st Floor, Dekk Complex, Plaisance, Mahe, Seychelles.

Zeal Capital Market (Seychelles) Limited does not provide services for residents of certain countries such as the United States of America, Brazil, Canada, Egypt, Iran and North Korea (Democratic People’s Republic of Korea) and EU countries.

Official Website: www.traze.com | © 2024 Traze

Zeal Capital Market (UK) Limited is authorised for specific activities and product types including dealing in investments as agent, dealing in investments as principal, arranging (Bringing about) deals in investments and making arrangements with a view to transactions in investments by the Financial Conduct Authority, FCA Registration Number (FRN): 768451. Its principal office is at: No. 1 Royal Exchange, London, EC3V 3DG, United Kingdom.

Risk Warning: Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. You may be required to make further deposits in order to meet your margin requirements. You should consider whether you understand how CFDs work and whether you can afford to take the risk. The historical financial performance of any underlying instrument is no guarantee or indicator of future performance. Trading financial derivatives may not be suitable for all investors. Please ensure that you fully understand the risks involved, and seek independent advice if necessary.