At Kerford we believe best practice is the process of finding and using ideas and strategies from outside our company and industry to improve performance in any given area. The areas we follow best practices in, are the following:
- Communicating to a customer.
- Promotional tactics.
- Conducting customer educational seminars.
- Making payouts
When we communicate information to a customer
We take reasonable steps to communicate in a way, which is clear, fair and not misleading.
We have regard to the customer's knowledge of the designated investment business to which the information relates. We ensure the information embraces complete communications with customers, for example: client agreements, periodic statements, financial reports, telephone calls and any correspondence that is not a financial promotion.
While soliciting a new customer we obtain certain information about the customer and to provide appropriate disclosure about the risks of investment based upon that information.
Disclosure will be delivered before the customer opens an account.
We take reasonable steps to ensure that any person acting on our behalf does not: offer, give, solicit or accept an inducement.
We make records of the reports sent to customers and retain those records for at least three years from the date to which they relate.
Our policy states at a minimum, we have to obtain the customer's true name, address, principal occupation or business, current estimated overall income and net worth, age and some sense of the customer's previous investment experience.
Promotional tactics:
Statements made in promotional material are factually true.
Equally prominent statements of the risk of loss balance statements concerning the possibility of profit.
Hypothetical results are not presented for which at least 6 weeks of actual trading results is not available.
Statements regarding actual past trading profits mention that past results are not necessarily indicative of future expectations.
Statements of opinion are identified as such.
Our promotional material: Do not deceive or mislead the reader, Is not part of a high-pressure sales approach, Will not omit any fact that might make the material Misleading or deceptive, States that High risk and Active investor participation is not appropriate for everyone.
We provide generic literature like letterheads, leaflets, forms and envelopes that is suitable for use and distribution if: It is used for product specific information (for example, key features, minimum information, direct offer financial promotions), the literature does not feature the other's name or features it less prominently than us, it is used to promote products or service that is only ours.
We do not enter into any arrangements:
That provides volume overrides and pays commission that in respect of several transactions is more than a simple multiple of the commission payable in respect of one transaction.
We do not make deals that are either directly or indirectly under a soft commission agreement, unless it does not result in a price disadvantage to the customer and does not take the form of or include cash or any other direct financial benefit.
Pay commission to other than the entity responsible for the sale, unless the entity responsible for the sale has passed on its right to receive the commission to another recipient.
We make a record of each payment of commission, and retain that record for a period of at least six years from the date of payment.
An Executive may organise an educational seminar if:
It is for a genuine educational purpose as per our prescribed format.
The seminar is open to participation by all interested customers for learning.
All our training tools and facilities of any kind (for example, lectures, venue, written material and software) are made available generally to all interested persons.
