| 1. |
In addition to applicable requirements in the Company Rulebook, VASPs shall, for the purposes of promoting fair and transparent markets, preventing conflicts of interest and ensuring compliance with all relevant Regulations, Rules and Directives, implement policies to govern and monitor the transactions and positions of their Board members and Staff. Such policies shall, as a minimum, specify—
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a. |
any Virtual Assets which Board members and Staff cannot transact or have a position, or any other economic interests, in; |
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b. |
any legal entities of which Board members and Staff cannot have any shareholding or hold a directorship; and |
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c. |
the forms in which Board members and Staff shall—
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i. |
obtain prior approvals under Rule VI.B.2 of this Market Conduct Rulebook; and |
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provide notifications under Rule VI.B.3 of this Market Conduct Rulebook.
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| 2. |
All Board members and Staff shall obtain written approval from the VASP prior to taking any of the following actions which is reasonably likely to cause actual or potential conflicts of interest—
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a. |
opening, modifying or closing any Virtual Asset positions held directly or indirectly on their own account; |
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b. |
increasing or decreasing their shareholding [held directly or indirectly on their own account] in a legal entity other than the VASP; |
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c. |
taking up a directorship in a legal entity other than the VASP; or |
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d. |
all additional actions stated by the VASP in the policy established under Rule VI.B.1.
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| 3. |
VASPs shall, at least every six [6] months, require Board members and Staff to notify them of—
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a. |
in relation to all Virtual Asset positions held directly or indirectly on their own account—
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a description and the identifier of each Virtual Asset and/or related investments; |
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ii. |
the size of positions for each Virtual Asset and/or related investments; |
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iii. |
the nature of the transaction[s]; and |
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iv. |
transaction history relevant to positions held.
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b. |
in relation to their shareholding, held directly or indirectly on their own account, or director roles in any legal entities other than the VASP—
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the full name and place of organisation of the legal entity; |
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the purpose of such shareholding and directorship; |
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the shareholding percentage [if applicable]; and |
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iv. |
full details of any renumeration for such director roles.
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| 4. |
If a VASP has any information or reason to believe any Board member or Staff is likely to cause, or has caused, an actual or potential conflict of interest, it must take all necessary actions to ensure such conflict of interest is removed, including but not limited to—
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procuring the relevant Board member or Staff to divest the relevant Virtual Asset positions or shareholding; |
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resign from the board of the other legal entity; or |
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c. |
any other action required to remove the conflict of interest, either with respect to the other Entity or the VASP.
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| 5. |
VASPs shall notify all Board members and Staff of their obligations under Rule VI.B of this Market Conduct Rulebook in writing prior to the start of their employment by the VASP.
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