Below are the details of the operational risks covered within this selected sub-risk category:
Insider trading on firm's accounts
Employees may acquire information from private sources, where such information is not available to other market participants, and utilize such information to conduct trading transactions on firm's accounts. Examples of such private sources may include: -
Improper sharing of information between business units resulting in conflict of interest concerns
Improper sharing of information between business units may result in conflict of interest concerns for the firm. Examples of such sharing of information may include: -
Intentionally facilitating customers to breach laws or regulations for financial gain
Employees may intentionally facilitate customers to breach laws or regulations for financial gain to customers and firm. Example of such facilitation may include: -
Accepting capital investment from inappropriate sources
Firm may accept capital investment from inappropriate sources. Examples of sources may include: -
Evading taxes by using illegal practices
Firm may adopt illegal practices to evade taxes. Such illegal practices may include: -