MB Capital

Anti Bribery and Corruption Policy

1. Purpose

Fountain Wealth is a Trading Style of MB Capital. This policy details how MB Capital will manage the risks posed by Bribery and Corruption and ensure a consistency of approach within MB Capital.

MB Capital is authorised by the Financial Conduct Authority (FCA) and, as such, will act in accordance with the Financial Crime rules as defined in the FCA Handbook, which will take precedence over the requirements of this policy.  

This policy aims to maintain the highest standards of governance, personal and corporate ethics, compliance with all laws and regulations and values integrity and honesty in dealings with all employees, clients, suppliers, and associates. It is designed to protect MB Capital against bribery, corruption and to ensure that MB Capital complies with all the requirements of the Bribery Act 2010. In addition to the potentially significant financial losses and reputational damage caused by financial crime, any failure to establish and maintain controls leaves MB Capital and Senior Managers open to criminal sanctions that include heavy fines.

MB Capital’s has a zero-tolerance approach to acts of Bribery and Corruption by any of its employees or business partners. MB Capital will take the necessary preventative actions and will promptly investigate any suspicion of bribery or corruption occurring.  

2. Review of Policy

This policy will be reviewed regularly by the Nominated Officer, on behalf of the Management Body, and reviewed at least annually and amended as considered necessary by MB Capital’s Management Body in the event of changing circumstances or regulations.

3. Responsibilities

3.1 Management Body Responsibilities

The Management Body of MB Capital are responsible for assessing Bribery & Corruption risks, ensuring the implementation of this policy to minimise the risk, and providing the appropriate employee training.

The Management Body will satisfy themselves that there are appropriate systems and controls in place for any outsourced arrangements to monitor and mitigate the risks posed by Bribery & Corruption occurring at those firms.  

Compliance with this Policy is included in the Management Body’s standing agenda and is reviewed on a regular basis. Management Information will be submitted to the Management Body regularly to enable them to appropriately manage the Bribery & Corruption risks and take any necessary actions.

The Management Body commits to provide the necessary authorities with the required access or information in the case of a Bribery & Corruption investigation.v

3.2 Employee Responsibilities

All employees are expected to attend and complete the appropriate Anti-Bribery and Corruption training.

Employees are expected to be alert to any acts of bribery and corruption and they are responsible for reporting any actual or suspected acts of Bribery and Corruption in a timely manner.

Employees are expected to co-operate fully with any reviews or investigations into financial crime.

Failure to notify an appropriate person about criminal actions of which employees are aware may be considered as a breach of this policy. Any breach of this policy will be regarded as a serious matter by MB Capital and is likely to result in serious disciplinary sanctions, which could ultimately lead to dismissal.

4. Bribery and Corruption risks

This policy outlines the management of the following inherent risks

4.1 Bribery

Bribery is a specific offence and can be defined as an offer or acceptance of any gift, fee, reward or other advantage to or from any person as an inducement to do something in the conducting of MB Capital business, which is dishonest, illegal or a breach of trust. This would include offers and promises to give, as well as requests and agreements to receive, bribes. 

A bribe could be a promise of anything of value, the offer or receipt of any kickback, loan, fee, reward or other advantage or even the giving of donations or charitable aid seeking to influence a decision maker by giving some kind of extra benefit to that decision maker rather than by what can legitimately be offered as part of a tender process. (e.g. in the award of a sales contract).

Bribery does not have to involve cash, or an actual payment exchanging hands and can take many forms such as a gift, lavish treatment during a business trip or tickets to an event.

4.2 Corruption

Corruption, broadly, is the misuse of public office or power for private gain, or misuse of private power in relation to business outside the realm of government. More precisely corruption can be defined as the abuse of entrusted power for private gain in order to obtain, retain or direct business or secure any other improper advantage in the conduct of business and/or dishonest or unethical conduct by a person entrusted with a position of authority such as managers or government officials and is considered to be a financial crime. It may take various forms including giving or accepting bribes or inappropriate gifts, double dealing, under-the-table transactions, theft, fraud, or even certain forms of networking. 

4.3 Fraud

Fraud is defined as any activity involving deception or dishonesty, by people either internal or external to MB Capital, which may result in financial loss or reputational damage to MB Capital or its clients, whether or not there is personal benefit to the fraudster.

Fraud can be committed in one of the following ways:

  1. False Representation – lying about something with an intention to make again or make a loss for another or to expose another to a risk of loss
  2. Failure to disclose – not saying something that you have a legal duty to do so with an intention to make again or make a loss for another or to expose another to a risk of loss
  3. Abuse of position – a person in a position of trust abuses that position with the intention to make a gain or cause a loss to another – this abuse can also be through an omission rather than through an act

4.4 Embezzlement and theft

Embezzlement or theft happens where someone with access to funds or assets illegally takes control of them. It may for instance involve using deception to convince the owner of funds or assets to give them up to an unauthorised party, the misdirection of company funds into “shadow companies” (and then into the pockets of corrupt employees) or the skimming of foreign aid money.

4.5 Networking

Networking is usually defined as a socio-economic activity by which professionals and entrepreneurs meet to form business relationships and to recognize, create, or act upon business opportunities, share information and seek potential partners for ventures or find employment opportunities. While the practice is widely accepted and perfectly legal, it can still raise certain ethical concerns. The objection is that it constitutes an attempt to corrupt the formal selection processes, by seeking non-meritocratic advantage over other peoples or business ventures as the decision will be based on personal fondness rather than on any objective appraisal/assessment.

4.6 Legal and regulatory requirements

MB Capital will ensure that there are adequate and appropriate systems and controls to manage Bribery and Corruption risks which meet the requirements of regulators and legislators.  Failure to do so could expose MB Capital to regulatory or legal censure.

5. Risk Management

The key risk processes are set out below:

5.1 Risk Assessment

MB Capital has carried out a Bribery and Corruption risk assessment and established systems and controls that identify, assess, monitor, and manage fraud, bribery and corruption risks.   The risk assessment, systems and controls will be reviewed, at least annually, in conjunction with changes to the business and the management information provided to the Management Body.  MB Capital will establish clear plans to implement any improvements required that were identified in the reviews.

5.2 Monitoring

MB Capital will regularly monitor the systems and controls in place to combat Bribery and Corruption to ensure that they manage the risks effectively.  Policies and procedures will be updated to reflect the current legal and regulatory developments.  MB Capital will ensure that sufficient resources are allocated to deter risks of Bribery and Corruption.

5.3 Management Information and planning

Management information will be provided to the Management Body regarding the compliance with the policy, operation and effectiveness of the systems and controls in place to combat Bribery and Corruption, and recommendations or enhancements required. It will include information on clients, transactions, suspicious transaction reports, training, and breaches. Financial crime issues will be escalated to the Management Body as considered necessary.  The Management Body will use this information to review the provisions for preventing Bribery and Corruption. It will plan to enhance the systems and controls where considered necessary.

The management information will contain information on the following:

  • External developments relevant to Bribery and Corruption
  • Employee Bribery and Corruption training statistics
  • Third party accounts and payments and risk classifications
  • Lessons learnt
  • Data security incidents

6. Controls

The following controls are in place to mitigate the risk of Bribery and Corruption:

6.1 Employee Vetting

MB Capital will vet new employees on a risk-based approach, taking into account Anti-Bribery and Corruption risks. Enhanced vetting will be carried out for employees in higher risk roles, including credit checks, criminal records checks, financial sanctions list and the CIFAS Staff Fraud Database.  

MB Capital’s Financial Crime Policy contains further information on the arrangements MB Capital has implemented.

6.2 Training

MB Capital understands the importance of training and ensuring that the appropriate training delivered to all relevant employees, whether on a full-time, part-time or contract basis, is vital in ensuring that this policy is delivered effectively.

Anti-bribery and corruption training is critical in ensuring that Firm employees and the Management Body are aware and comfortable with the fundamental aspects of identifying, deterring and preventing bribery and corruption.  This training is mandatory and so all relevant staff must undertake and pass this training, prior to administering business relationships with, or facilitating unsupervised transactions for the benefit of clients.  Employees in higher risk roles will be required to undertake additional Anti-Bribery and Corruption training.

Training records are maintained, and form part of the management information produced for MB Capital’s Management Body.  This training will be refreshed on an annual basis or more frequently, as required, over the duration of an employee’s contract with MB Capital.  

All staff within MB Capital, whether on a full-time, part time or contract basis, are required to sign an attendance sheet at all training sessions to evidence that they have received training.

6.3 Conflicts of Interest

Bribery and corruption, besides being financial crimes, also give rise to potential conflict of interest as person engaging in such actions will often prioritise its own interests or the interests of a related party over those of clients or MB Capital itself. A comprehensive and effective conflict of interest policy is therefore a critical part of the framework to combat bribery and corruption.

MB Capital has established a comprehensive Conflict of Interest policy establishing the requirement to always act honestly, fairly, and professionally in the best interest of MB Capital clients, both new and existing. It requires to identify, prevent and manage any conflict of interests that arise in the course of providing investment/ancillary services, or combination thereof, including those caused by receipt of inducements from third parties or by MB Capital’s own remuneration and other incentive structures. It aims at ensuring that any conflicts are identified and monitored appropriately. 

MB Capital’s Conflict of Interest Policy contains further information on the arrangements MB Capital has implemented.

6.4 Outsourcing & Introducers

MB Capital’s Outsourcing Policy is part of the overall framework aimed at combating bribery and corruption as it introduces several mandatory obligations where relying on third parties for the performance of operational function that are critical for the performance of MB Capital activities. Among others, the requirement of ensuring that the third-party service provider has the ability, capacity and expertise to perform the outsourced function lawfully and effectively. Any such business relationships are to be selected with care, monitored closely and regularly which will facilitate the detection of any suspicious activities, if any. Also, any such business relationship will be comprehensively documented and therefore it will limit the ability to game the selection process and or the continuation of the relationship in case of irregularities. 

MB Capital will carry out background checks and will ensure an Introducer Agreement is in place before accepting business from an introducing third party. It is the responsibility of the regulated firm to carry out all activities in relation to the Sales process. Under no circumstances should an Execution Only instruction be accepted from the Introducer or the Client.

6.5 Whistleblowing

MB Capital’s Outsourcing Policy is part of the overall framework aimed at

MB Capital has established appropriate and effective arrangements for the disclosure of reportable concerns by whistle blowers. A specific procedure has been implemented allowing for disclosures of reportable concerns to be made through a range of communication methods within MB Capital and information on how to use specific reporting channels set by Regulators and Governments to allow individuals to report legal, compliance or other regulatory issues.

MB Capital’s Whistleblowing Policy contains further information on the arrangements MB Capital has implemented.

combating bribery and corruption as it introduces several mandatory obligations where relying on third parties for the performance of operational function that are critical for the performance of MB Capital activities. Among others, the requirement of ensuring that the third-party service provider has the ability, capacity and expertise to perform the outsourced function lawfully and effectively. Any such business relationships are to be selected with care, monitored closely and regularly which will facilitate the detection of any suspicious activities, if any. Also, any such business relationship will be comprehensively documented and therefore it will limit the ability to game the selection process and or the continuation of the relationship in case of irregularities. 

MB Capital will carry out background checks and will ensure an Introducer Agreement is in place before accepting business from an introducing third party. It is the responsibility of the regulated firm to carry out all activities in relation to the Sales process. Under no circumstances should an Execution Only instruction be accepted from the Introducer or the Client.

6.6 Third party payment controls

A third-party payment is a payment to an individual or entity that is not one of the principals in a transaction.

Prior to payments being made to third parties, MB Capital will assess the risks of that payment being part of a fraud or bribery.  All third-party accounts will be subject to a due diligence process.

Where payments are received from third parties, MB Capital will ensure that the payment is not received as or cannot be perceived as an incentive to improperly perform a function.

6.7 Remuneration structure

MB Capital will regularly consider whether its remuneration structure gives rise to an increased risk of bribery and corruption.  The remuneration structure will take into account a number of different factors including a good standard of compliance by the employees.

6.8 Gifts and Hospitality, Expenses

6.8.1 Gifts and Hospitality

MB Capital requires any employee who is offered any kind of gift or payment over an agreed limit from either inside or outside MB Capital to report this to MB Capital’s Nominated Officer for recording on the Gifts & Hospitality Register.  In addition, any indications of expectation of support following a gift or hospitality of any value should be reported to the Nominated Officer. 

MB Capital’s Gifts and Hospitality Policy contains further information and the agreed value limits set by the Management Body.

6.8.2 Expenses

All employees are entitled to reimbursement of expenses incurred necessarily as a result of their business activity, those may include travel expenses, housing, or meals. MB Capital will reimburse all reasonable business expenses in part or in full as the case may be after they have been approved by the relevant line manager. Any business expenses must be documented with corresponding bills and receipts.

MB Capital will investigate any excessive expenses. In case of consistent falsified or exaggerated claims, it may take disciplinary action which could ultimately lead to dismissal.

6.9 Record Keeping

Many serious global bribery and corruption offences have been found to involve some degree of inaccurate record-keeping. MB Capital will maintain accurate books, records, and financial reporting within its business units and for significant business partners working on its behalf. MB Capital’s books, records and overall financial reporting must also be transparent i.e. they must accurately reflect each of the underlying transactions. False, misleading, or inaccurate records of any kind could potentially damage MB Capital.

MB Capital’s Record Keeping Policy contains further information on the arrangements MB Capital has implemented.

6.10 Facilitation of payments

Facilitation payments are typically small, unofficial payments made to speed up or facilitate a routine government action by a government official. MB Capital understands that in many countries they may be considered as customary. The UK Bribery Act 2010 does not make a distinction between facilitating payments and bribes regardless of local cultural expectations, and therefore it is MB Capital’s policy not to make or accept any such facilitations payments.  

If you have any suspicions, concerns or queries regarding a payment, you should raise these with the Nominated Officer.

6.11 Use of third parties to win business

MB Capital has an ethical and regulatory duty to act with the highest standards of integrity and honesty in all it does. This includes activities conducted by external party supplying services for or on behalf of MB Capital, or acting on MB Capital behalf, it may include but is not limited to suppliers, resellers, strategic or channel partners. Whilst the use of business partners can help MB Capital reach its goals, MB Capital is aware that these arrangements can potentially present significant risks.

Business partners who act on MB Capital behalf must be advised of the existence of this Policy and operate at all times in accordance with it.

Where special risk regarding a business partner or arrangement has been identified, the relevant Business Line Manager, in conjunction with support from the Nominated Office, will:

  • Conduct a Due Diligence on the background, experience, and reputation of the business partner
  • Analyse the services to be provided, methods of compensation payment and the rationale for engaging the business partner
  • Ensure there is a written agreement in place which acknowledges the business partners understanding and compliance with this policy
  • And, where necessary, will implement additional arrangement to monitor the business partner transactions to ensure that they uphold the highest standard of conduct

6.12 Donations

No donation must be offered or made without the prior approval of the Nominated Officer.

6.13 Reporting and escalation

Employees are expected to be alert to fraud, bribery, and corruption risks. They are responsible for reporting any actual or suspected bribery and corruption acts to the Nominated Officer in a timely manner. Please note that bribery and corruption are considered to be financial crimes with the meaning of POCA and therefore where detected need to be reported to competent authorities.

All notifications made will be handled with strict confidentiality. However, please note that there may be circumstances in which MB Capital may be required to reveal an individual’s identity, for example, where MB Capital is compelled to do so by law and therefore anonymity cannot be guaranteed.

If there are concerns about any repercussions of making a suspicious activity report, then the Whistleblowing Policy and Procedure should be followed for information on alternative methods of making a report.

Failure to notify an appropriate person about an act of Bribery or Corruption of which an employee is or should have been aware, in breach of this policy, may be considered to be a contractual breach leading to disciplinary actions.

6.13.1 Subsequent investigations

MB Capital strictly forbids any retaliation against anyone who in good faith reports a possible breach/violation or who assists with any enquiry or investigation, no matter who may be involved.

MB Capital is committed to supporting regulators and law enforcement officers in the prevention of Bribery and Corruption acts.

All employees are expected to cooperate fully with any investigations. Employees must also recognise, however, that laws and procedures may apply to the disclosure of information and they should therefore contact the Nominated Officer before disclosing information about clients or employees when contacted directly by law enforcement officers.

7. Record Keeping

All forms and related documents collected will be appropriately stored to allow for Competent Authorities to be able at any time to form a reliable picture of MB Capital compliance with its duties of combating bribery and corruption. 

The retention period of all relevant documentation and information is at least 5 years following the completion of the business relationship.

These records are kept at MB Capital’s offices and the Nominated Officer is responsible for ensuring that these records are complete and up to date.

8. Breaches of the Policy

Breach of this policy will be considered extremely seriously and is considered to represent gross misconduct and dealt with as such in accordance with MB Capital disciplinary procedures. 

Any breaches of the Anti-Bribery and Corruption policy will be recorded on MB Capital’s breach log in conjunction with its Regulatory Breach policy.