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The Policy applies to client orders in all ﬁnancial instruments covered by the MiFID Regulations. These are principally equities and equity-like instruments such as depository receipts.
The Policy applies where Global Shares receives and transmits client orders to executing brokers
The following factors will be taken into consideration by Global Shares and by the executing brokers in determining how to obtain the best possible result for your order:
Price of the ﬁnancial instrument
Costs and expenses related to execution
The size of the order
Likelihood of execution and settlement
Speed of execution
Nature of the order
Any other consideration that is relevant to the execution of your order.
For retail clients, the best possible result for a client will be determined in terms of the total consideration of a trade, representing the price of the ﬁnancial instruments and all costs and expenses relating to execution (such as execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order). In some circumstances we may use our discretion to place a higher importance on the other factors referred to above , as listed from 3 – 7. In general, the ranking of the relevant importance of such factors is listed in this order, but may vary on a case by case basis as Global Shares will take the following factors into account:
Your categorisation as a retail client
The characteristics of your order
The characteristics of the ﬁnancial instrument
The characteristics of the execution venues to which the order may be directed
In general, the best possible result for a client will be determined in terms of the total consideration of a trade, representing the price of the ﬁnancial instruments and all costs and expenses relating to execution (such as execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order). However, we may use our discretion to place a higher importance on the other factors referred to above, as listed from 3 – 7. In general, the ranking of the relevant importance of such factors is listed in this order, but may vary on a case by case basis as Davy will take the following factors into account:
Your client categorisation
The characteristics of your order
The characteristics of the ﬁnancial instrument
The characteristics of the execution venues to which the order may be directed.
Where you provide Global Shares with speciﬁc instructions in relation to your order, the order will be executed in line with these instructions. Where you provide speciﬁc instructions that relate to only a part of the order, we will continue to follow this Policy to those aspects of your order that are not covered by your instruction. Any instructions provided by you may prevent Global Shares from following all steps of the Policy which has been designed to obtain the best possible result for you in respect of the elements that are covered by that instruction.
In order to meet the obligation to obtain the best possible result for the execution of client orders, Global Shares will transmit client orders to executing brokers for execution. Those executing brokers may use one of the following types of venues or may execute the order over-the-counter:
Regulated Markets1 , including the Irish Stock Exchange and the London Stock Exchange
Multilateral Trading Facilities (‘MTF’)2
Organised Trading Facilities (‘OTF’)3
Market makers4, third party brokers or other liquidity providers
Non EU entities performing a similar function to the above.
Collectively, executing on a Regulated Market, MTF or OTF is referred to as executing or trading on a trading venue. Dealing over-the-counter means includes a broker dealing directly with another broker, or the broker dealing as principal on its own account.
Where there is more than one competing execution venue the executing brokers have to take into account their own commissions and also the costs for executing the order on each of the eligible execution venues. Global Shares requires that the executing brokers do not structure or charge their commissions in such a way as to discriminate unfairly between execution venues. For certain types of ﬁnancial instruments, there may be only one execution venue available to the executing brokers.
For some orders, the executing brokers may determine the best result is achieved by executing outside a trading venue. Such trades are not aﬀorded the same protections as trades executed on a trading venue, which are subject to rules and regulations governing execution and settlement. This increases counterparty risk.
1Regulated market – is a market place, trading system or exchange which meets the minimum EU standards set out in title III of the MiFID Regulations. In an Irish context the Oﬃcial List of the Irish Stock Exchange is a regulated market.
2Multilateral Trading Facility (MTF) – is, in broad terms, a system that brings together multiple parties (e.g. retail investors or other investment ﬁrms) that are interested in buying and selling ﬁnancial instruments and enables them to do so. These systems can be crossing networks or matching engines that are operated by an investment ﬁrm or a market operator. In an Irish context, the IEX (Irish Enterprise Exchange) market of the Irish Stock Exchange is an MTF.
3Organised Trading Facility (OTF) – is a multilateral system that is not a regulated market or MTF bringing together multiple third party buying and selling interests in ﬁnancial instruments in a way that results in a contract or transaction.
4Market Maker: is a ﬁrm that buys and sells a particular ﬁnancial instrument on a regular and continuous basis by posting or executing orders at a publicly quoted price. This is to enhance liquidity in that particular ﬁnancial instrument. It may also include a ﬁrm engaging in algorithmic trading that is pursuing a market making strategy.
Order Handling and Fair Allocation
Global Shares requires the executing brokers to ensure that client orders are executed in a prompt, fair and eﬃcient manner. Global Shares/the executing brokers may aggregate your orders with the orders of other clients or their own orders where they believe that such aggregation is unlikely to work to your disadvantage. However the eﬀect of the aggregation may work to your disadvantage in relation to a particular order. If aggregated orders can be executed only in part, in general, the executing brokers will allocate the related trades to clients on a pro-rata basis. Where orders are allocated on a non pro-rata basis, this normally follows an internally agreed procedure. If the executing brokers have aggregated your order with their own orders and the aggregated order is partially completed, they should allocate the related trades to clients in priority to their own orders unless they can demonstrate that without their participation the order would not have been carried out on such favourable terms, or at all.
Global Shares generally endeavours to carry out otherwise comparable client orders in the order in which they were received unless the characteristics of the order or prevailing market conditions make this impracticable, or the interests of the client require otherwise.
Should you place a limit order with Global Shares for a share admitted to trading on a regulated market or traded on a trading venue, below a certain size and this is not immediately executed under prevailing market conditions, then we/the executing brokers may be obliged to publish the details of your limit order unless you have expressly instructed otherwise.
Monitoring and Review of the Policy
Global Shares has an execution monitoring programme that reviews execution quality on an ongoing basis, assessing whether more favourable results for clients could be consistently achieved on alternative venues and whether the brokers or dealers to whom Global Shares transmit orders for execution and with whom Global Shares may place orders continue to provide the best possible result for Global Shares’ clients on a consistent basis. If deﬁciencies are identiﬁed, appropriate amendments will be made to Global Shares’ execution arrangements with the executing brokers.
Global Shares monitors this best execution policy by, among other things, doing the following:
Monitoring of brokers
The Firm carries out ongoing due diligences on executing brokers
The Firm carries out ongoing due diligences on executing brokers
Monitoring of Trades
Prices are checked on a random sample basis after the trade details are received from the executing broker to ensure it was within the appropriate price range.
Upon client request, Global Shares will provide information on how best execution was achieved for a client order.
An overall review of the policy and/or execution arrangements is completed on an annual basis or more frequently where a material change occurs. Material changes to the policy are notiﬁed by posting an updated version of the policy on the website at www.GlobalShares.com.
Each year Global Shares shall publish on its website the following information relating to the preceding year: – The top ﬁve brokers used for each class of ﬁnancial instrument
(principally equities and equity-like instruments such as depository receipts) in terms of trading volumes. A summary of Global Shares’ review of execution quality, together with details of the most frequently used executing brokers used across the ﬁrm on an annual basis is available on www.GlobalShares.com.
Global Shares does not receive any remuneration or non-monetary beneﬁt for placing orders with brokers and Global Shares does not deal on its own account. Further information on Global Shares’ Best Execution process is available to all clients on request. This policy shall be reviewed at least annually and is therefore subject to change. Global Shares will notify clients if the change is deemed material. The most up-to-date version of the policy is found on Global Shares’ website.
Global Shares has arrangements with several executing brokers. Executing brokers are subject to due diligence at take-on and at least bi-annually thereafter. Global Shares considers the below listed factors above for all executing brokers. When reviewing executing brokers, Global Shares:
establishes that the ﬁrm is MiFID authorized
seeks a copy of the ﬁrm’s Best Execution Policy and satisﬁes itself that such policy is adequate
satisﬁes itself that the commissions and other charges applied to client orders will be reasonable
satisﬁes itself that the ﬁrm has the capability to execute, administer and settle eﬃciently orders in the range of securities envisaged for dealing with that ﬁrm
satisﬁes itself that other services sought from the ﬁrm in conjunction with order execution (such as custody) are likely to be delivered eﬃciently, cost-eﬀectively and without exposing the client to unreasonable risks
considers the metrics the stockbroker publishes under the new MiFID II requirements
Fees & Charges
We currently provide details of our costs and charges in both our online statements and contract notes. Under the new MiFID Regulations we will provide more information on non-Global Shares costs and in particular, third-party fees on transactions. This is set out in your terms and conditions and will bring further transparency to our costs.
Currently, most clients statements twice a year or on request at any time. Under MiFID II this will change to quarterly. Statement notices will be sent by email and statements can also be found on your EquityGateway at any time.
This increased level of reporting will result in you receiving more correspondence from us. While these are important documents, we understand that many clients would like to reduce the amount of paper correspondence they receive. Your online portal, EquityGateway, allows you to access your account correspondence easily at any time and reduces ongoing paper correspondence.
Global Shares Execution Services Limited , is regulated by the Central Bank of Ireland under registration number C140575.
Client Categorisation Policy
This is Global Shares Execution Services Limited’s (“Global Shares” or the “Firm”) Client Categorisation Policy. The purpose of this policy is to outline how Global Shares complies with its statutory obligations.
Under the EU Markets in Financial Instruments Directive 2014/65 EU (‘MiFID II’), as implemented by Statutory Instrument No. 375 of 2017 in Ireland (the “MiFID Regulations”), Global Shares Execution Services Limited (“Global Shares” or the “Firm”) is required to have an Client Categorisation Policy. The purpose of this document is to provide retail and professional clients with information on this Policy.
Global Shares is required to notify new clients, and existing clients that it has newly categorised, of their categorisation as a retail client, a professional client or an eligible counterparty in accordance with the MiFID Regulations. Global Shares shall inform its clients in a durable medium about any right that client has to request a diﬀerent categorisation and about any limitations to the level of client protection that a diﬀerent categorisation would entail. This information must be provided to clients prior to any provision of services.
Global Shares Business
The Firm is an investment ﬁrm regulated by the Central Bank of Ireland. It is part of the Global Shares group. The Global Shares group is a share plan administrator. As part of the share plan administration business the ﬁrm generally has two types of clients. The majority of the clients of Global Shares are retail clients who are employee participants in employee share schemes operated by their employer company and administered by the Global Shares group. All clients are retail clients by default, unless they are categorised as another type of client. Issuers who operate the employee share plans may be categorised as professional clients. In the case of Global Shares, we currently provide an execution-only, non-advisory, non-discretionary, receipt and transmission of orders service in respect of non-complex instruments (being equities).
1. ‘Retail Client’
A ‘Retail Client’ is a client who is not a professional client or an eligible counterparty. Retail Clients are aﬀorded with the highest level of protection. The majority of Global Shares’ clients are retail clients.
2. ‘Professional Client’
A ‘Professional Client’ is a client that is either a per se professional client or an elective professional client. A professional client is a client who possesses the experience, knowledge and expertise to make his own investment decisions and properly assess the risks that he incurs.
Categories of clients who are considered to be professionals per se:
(1) An entity which is required to be authorized or regulated to operate in ﬁnancial markets. Examples of entities carrying out the characteristic activities are: a) Credit institutions b) Investment ﬁrms c) Other authorized or regulated ﬁnancial institutions d) Insurance companies e) Collective investment schemes and management companies of such schemes f) Pension funds and management companies of such funds g) Commodity and commodity derivatives dealers h) Locals : ﬁrms which provide investment services and/or perform investment activities consisting exclusively in dealing on own account on markets in ﬁnancial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets or which deal for the accounts of other members of those markets or make prices for them and which are guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such ﬁrms is assumed by clearing members of the same markets. i) Other institutional services
(2) Large undertakings meeting two of the following size requirements on a company basis: a) balance sheet total at least EUR 20,000,000 b) net turnover at least EUR 40,000,000 c) own funds at least EUR 2,000,000. Issuers which are clients of Global Shares and which operates employee share plans may fall within this group.
(3) Other institutional investors whose main activity is to invest in ﬁnancial instruments, including entities dedicated to the securitization of assets or other ﬁnancing transactions.
Elective professional clients
Global Shares may treat a client as an elective professional client if the following process is followed:
1. Global Shares undertakes an adequate assessment of the expertise, experience and knowledge of the client that gives reasonable assurance, in light of the nature of the transactions or services envisages, that the client is capable of making his own investment decisions and understanding the risks involved (“the qualitative test”). If the client is an entity, the test should be performed in relation to the person authorised to carry out transactions on its behalf.
2. At least two of the following criteria are satisﬁed:
The client has carried out transactions, in signiﬁcant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters
The size of the client’s ﬁnancial instrument portfolio exceeds EUR 500,000
The client works or has worked in the ﬁnancial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged (“the quantitative test”); and
The following procedure is followed: a. The client must state in writing to the ﬁrm that it wishes to be treated as a professional client either generally or in respect of a particular service or transaction or type of transaction or product; b. Global Shares must give the client a clear written warning of the protections and investor compensation rights the client may lose; and c. The client must state in writing, in a separate document from the contract, that it is aware of the consequences of losing such protections.
3. “Eligible Counterparty”
Per se eligible counterparty
The following is a per se eligible counterparty: 1) An investment ﬁrm 2) A credit institution 3) An insurance company 4) A collective investment scheme authorised under the UCITS Directive or its management company 5) a pension fund or its management company 6) another ﬁnancial institution authorised or regulated under EU legislation or the national law of an EEA State 7) an undertaking exempted from the application of MiFID 8) a national government or its corresponding oﬃce, including a public body that deals with the public debt 9) a central bank 10) a supranational organization
Elective eligible counterparties
Global Shares may treat a client as an elective eligible counterparty if:
1) the client is an undertaking and: a. is a per se professional client, and: i. is a body corporate which has called up a share capital of at least £10 million; or ii. meets the criteria in the rule on meeting two quantitative tests; or b. requests such categorisation and is an elective professional client, but only in respect of the services or transactions for which it could be treated as a professional client; and
2) Global Shares has, in relation to MiFID business, obtained express conﬁrmation from the prospective counterparty that it agrees to be treated as an eligible counterparty.
Professional Clients and Eligible counterparties have the right to request re-categorisation as a client that beneﬁts from a higher degree of protection. It is the responsibility of the client to ask for a higher level of protection. Global Shares reserves the right to cease business with the client if diﬀerent client categorisation is requested. If a new client category is applied by Global Shares, a new written agreement will be issued.
Key diﬀerences between Retail Clients and Professional Clients
The key diﬀerences between the relative levels of protection between Retail client and Professional clients include the following:
When dealing with Retail clients, we need to provide additional information (including detailed risk warnings, disclosure of costs and charges without any limited application). When communicating any ﬁnancial promotions, we have to ensure that the information provided does not emphasise any potential beneﬁt of any products or services without providing a fair and prominent indication of any relevant risks. The information has to be presented in a way that is likely to be understood by the intended audience.
When dealing with Retail clients, we are required to ascertain if they have the knowledge and experience to understand the risks relating to a particular product/ service, and in some cases, their ability to ﬁnancially bear the related investment risk. This will help us determine if the product/service oﬀered or requested is suitable for the client. For Professional clients, we are entitled to assume that they have the necessary experience and knowledge to understand the risk relating to a particular product/service and they are able to bear any related investment risk for such a product/service. Note: In the case of Global Shares, we currently provide an execution-only, non-advisory, non-discretionary receipt and transmission of orders service in respect of non-complex instruments (being equities).
Complaints received from certain Retail clients (those that meet the deﬁnition of an Eligible Complainant, such as consumers, micro-enterprises, charities) are required to be handled in accordance with particular complaint handling rules.
Retail clients are more likely to have rights as eligible claimant under the Investor Compensation Scheme. A professional client is unlikely to be such a claimant meaning that compensation under the Investor Compensation Scheme would not be available to a professional client.
When dealing with Retail clients there are more restrictions in relation to safeguarding of client investments and client money.
With retail clients, we will always apply the principles of best execution required under MiFID II, as set out in our Best Execution and Order Handling Policy, unless speciﬁc instructions received from a client restrict our ability to apply the principles fully. With professional clients dealing in ﬁnancial instruments, best execution is owed when we accept an order to execute a transaction on client’s behalf or in other circumstances where we have agreed to accept such best execution obligation.
When selling packaged investment products to retail clients, there are a number of speciﬁc rules which must be adhered to, for example, the provision of a key information document. Global Shares does not currently provide such packaged investment products.
Key diﬀerences between Eligible Counterparties and Professional clients
Certain rules which apply to us when acting for Professional clients do not apply when the client is an Eligible Counterparty:
The rule requiring certain information to be disclosed to a client before providing services.
The rule that restricts the ability of ﬁrms to accept and pay inducements.
The rule on how we communicate with clients, including those which govern how we market and promote to clients.
The rules requiring ﬁrms to provide information about costs and charges have a limited application in respect of Eligible Counterparties.
The rules governing the provision of client agreements.
The rules which require ﬁrms to assess the appropriateness of products or services.
The rule requiring ﬁrms to act in the best interest of its client.
The rules requiring ﬁrms to take all reasonable steps to obtain the best possible result when executing or receiving and transmitting client orders (best execution).
The rules which require ﬁrms to follow certain conditions when carrying out client orders (i.e. those rules relating to the prompt recording and allocation or orders, sequential execution and aggregation of orders and allocation of orders).
The rules which apply to identiﬁcation of non-independent research as marketing communications.
The rule which require ﬁrms to provide clients with a description of the nature and risks of investments.
The rules which require ﬁrms to provide clients with trade conﬁrmation information and periodic statements may have a limited application.
Global Shares Execution Services Limited , is regulated by the Central Bank of Ireland under registration number C140575. For further information please contact +353 23 8833062.
Conﬂict of Interest Policy
Under the EU Markets in Financial Instruments Directive 2014/65 EU (‘MiFID II’), as implemented by Statutory Instrument No. 375 of 2017 in Ireland (the “MiFID Regulations”), Global Shares Execution Services Limited (“Global Shares” or the “Firm”) is required to have a Conﬂicts of Interest Policy. The purpose of this document is to provide retail and professional clients with information on this Policy. Under the MiFID Regulations, the Firm is obliged to avoid conﬂicts of interest arising.
It is Global Shares’ policy to ensure that the best interests of the clients are served and we avoid Conﬂicts of Interest arising at all – this is our primary responsibility. We must take all appropriate steps to identify, prevent and manage conﬂicts of interest, while noting that the Firm may need to make suﬃcient disclosure to comply with potential ﬁduciary conﬂicts arising as a matter of common law. Disclosure to clients is a measure of last resort to be used only where the organisational and administrative arrangements established by the Firm are not suﬃcient to ensure, with reasonable conﬁdence, that risks of damage to client interests will be prevented. We also ensure that policies, procedures and controls help to:
Identify circumstances, relationships and arrangements, which give rise to or could potentially give rise to a Conﬂict of Interest;
Where Conﬂicts of Interest arise, eliminate or reduce to the greatest extent feasible, the Conﬂict of Interest and actively manage the Conﬂict of Interest;
Where a Conﬂict of Interest cannot be eliminated, to disclose the nature and source of the Conﬂict of Interest to clients, along with an explanation of the eﬀorts which have been made to eliminate the Conﬂict of Interest and the nature and implications of the remaining Conﬂict of Interest;
Assess and resolve (where feasible) actual or potential Conﬂicts of Interest; and
Disclose and maintain records of Conﬂicts of Interest as appropriate.
This document will also be used as a key reference tool in raising awareness of Conﬂicts of Interest and the conﬂict management process.
What is a Conﬂict of Interest?
Conﬂicts of Interest are any situations that may arise in the provision of investment or ancillary services, or a combination of them, and whose existence may damage the interests of a customer, in all cases taking into account the speciﬁc situations that may arise. In simple terms, it is where the interests of the Firm (or employees or agents or group companies) conﬂict with those of the retail client.
Some examples of Conﬂicts of Interest are where:
The Firm may obtain a ﬁnancial beneﬁt, or prevent a ﬁnancial loss, at the expense of the client.
The Firm has an interest in the outcome of a service provided to the client or a transaction carried out on his or her behalf, which is distinct from the client’s best interests.
The Firm has a ﬁnancial or other incentive to favour the interest of another client or group of clients over the interests of the client in question.
The Firm carries out the same activity or business as the client.
The Firm receives or is going to receive from a person other than the client an incentive related to a service provided to the client, in the form of monies, goods or services, other than the standard commission or fee for this service.
Policy Review and Testing
This policy shall be reviewed annually or after any changes to the business processes or regulation that would require additional policies and controls. The review shall be completed by the Risk & Compliance Oﬃcer or by its designee(s). A copy of the Conﬂict of Interest Register (deﬁned below) shall be provided to the Firm’s Board of Directors for review on an annual basis.
3) The policy will be tested by, among other things, selecting a sample from the Conﬂict of Interest Register which shall be reviewed, with consideration of the Conﬂict, Eﬀect, and Consequence of the conﬂict, and shall also form part of the scope of the annual audit. These procedures ensure that any Conﬂicts of Interest which may arise are dealt with eﬀectively and eﬃciently.
All new employees will be required to read and understand the Conﬂict of Interest Policy and in addition this policy will be included in the annual policy updates and training which all employees must attend.
The Head of Compliance.
The Firm conducts business in a way which is fair and professional in accordance with the best interests of its clients. The Firm tries to maintain and operate eﬀective organisational and administrative arrangements with a view to taking all reasonable steps to identify, monitor and manage Conﬂicts of Interest that may arise through its business activities and keep the clients’ interests at their core.
The following potential conﬂict red ﬂags, among other things, must be noted:
Client vs. Client Conﬂicts
The Firm could be in initial discussions with clients on both sides of a deal.
Employee vs. Client Conﬂicts
An employee engages in outside business activities by holding client ﬁnancial instruments.
Employee vs. Firm Conﬂicts
An employee engages in personal trading or outside business activities (including board memberships/directorships) that could conﬂict with a client or with the Firm.
Vendor vs. Client Conﬂicts
A vendor may misuse or inadequately protect conﬁdential client information.
A vendor may fail to protect conﬁdential client information adequately after its relationship with the Firm is terminated.
The Firm will monitor these red ﬂags when addressing Conﬂicts of Interest.
For the purposes of identifying Conﬂicts of Interest, the following criteria shall be considered when determining whether a conﬂict exists or may exist. When providing a service to a client, is Global Shares and/or its employees:
Likely to make a ﬁnancial gain, or avoid a ﬁnancial loss at the expense of the client?
What is the cumulative value of the gifts / entertainment received by any one employee?
The following non-exhaustive list sets out situations which have been identiﬁed by Global Shares, as potential situations in which Global Shares may have conﬂicting interests in the provision of the Services or otherwise. Does Global Shares and/or its employees:
Have an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome; Have a ﬁnancial or other incentive to favour the interest of one client or group of clients over another client or group of clients;
Carry on the same business as the client;
Receive from a person other than the client an inducement in relation to a service provided to the client, in the form of monies, goods or services, other than the standard commission or fee for that service;
Proﬁt personally from an arrangement outside the compensation arrangements provided by Global Shares;
Is involved in an arrangement or activity that creates the appearance of a conﬂict with a client;
When providing the Service or carrying out a transaction, Global Shares receives or will receive an inducement in relation to that service provided to the client (in the form of monies, goods or services other than the standard commission or fee for that service) from a person other than the client;
Has it been identiﬁed that Global Shares carries on the same business as the client; or
Does Global Shares have a ﬁnancial or other incentive to favour one service provider over other service providers (a relative or personal relationship);
It is important to note that Conﬂicts of Interest can occur at any level of the business. Whether it is at senior management or trainee level, employees must be aware of personal connections that give rise to Conﬂicts of Interest and are obliged to disclose such connections so that conﬂicts can be identiﬁed and managed appropriately.
Any failure to identify or properly address a conﬂict can have severe negative repercussions for Global Shares, its associated persons, and/or clients. In some cases, the improper handling of a conﬂict could result in litigation and/or a disciplinary action. Impropriety or even the appearance of impropriety could negatively aﬀect all associated persons, including those who have no direct involvement in the problematic activities
Avoidance and Management of Conﬂicts
Global Shares has put in place all the necessary internal policies and has assigned the identiﬁcation and management of Conﬂicts of Interests to its Compliance Department. The internal procedures will be updated regularly by the Compliance Department to ensure that the procedures put in place deal with conﬂicting interests eﬀectively and eﬃciently.
It is Global Shares’ Policy to avoid Conﬂicts of Interest arising at all, unless that is not feasible. If it is not feasible, it is Global Shares’ Policy to disclose the nature and source of the Conﬂict of Interest to clients, along with an explanation of the eﬀorts which have been made to eliminate the Conﬂict of Interest and the nature and implications of the remaining Conﬂict of Interest
Global Shares has put in place several procedures and controls that are used to manage the identiﬁed conﬂicts of interest, which are set out, non-exhaustively, below:
(a) Global Shares shall put in place a scheme whereby the ﬂow of information between relevant persons whose conﬂicting interests may harm the interests of one or more clients, is controlled and prevented.
(b) Global Shares shall ensure that relevant persons whose functions involve the carrying out of activities on behalf of, or providing services to, clients who may have conﬂicting interests, are supervised and separated. The scheme of supervision includes functions of relevant persons who represent clients whose diﬀerent interests that may conﬂict, including the interests of Global Shares;
(c) Global Shares shall ensure that there is no direct link between the remuneration or revenue of diﬀerent employees, where one is primarily performing in one function and the other is a person primarily performing another function, where there may be a Conﬂict of Interest between these functions;
(d) Global Shares shall take such measures that would limit the inﬂuence of any person, relevant or otherwise, over the inappropriately interfering with the way in which a relevant person carries out the Service;
(e) Global Shares shall put in place a scheme whereby a relevant person will be prevented from being sequentially or simultaneously involved in functions that may inhibit any Conﬂicts of Interest that may arise from being properly managed.
(f) Global Shares shall ensure the ongoing monitoring of business activities to ensure that Global Shares also undertakes ongoing monitoring of business activities to ensure that internal controls put in place remain appropriate.
The following schemes for the prevention of any Conﬂicts of Interest will be put in place:
(a) The prevention and/or management of the distribution of conﬁdential or inside information within Global Shares, by the implementation of “Chinese walls”, if necessary, which would control and limit the ﬂow of conﬁdential and/or inside information within Global Shares. The scheme will also ensure the separation of diﬀerent departments/functions, to prevent or restrict the ﬂow of such information.
(b) The prevention and/or management and the safeguard of access to electronic data held by Global Shares.
(c) The separation of functions carried out by the same person that may bring about the Conﬂict of Interests within Global Shares or otherwise.
(d) The logging of all gifts and inducements which will monitor the oﬀer of receipt of any beneﬁts.
(e) Monitoring and prevention of the external business interests of the Company’s Oﬃcers and employees to ensure no conﬂict with the interests of Global Shares, save for the instances where the board issues the relevant approval.
(f) A scheme whereby the risk of conﬂicting interests arising from the exchange of documents is eliminated.
(g) The implementation of a “four-eyes” scheme which will be adopted at all stages and for all relevant functions performed by Global Shares.
(h) An Internal Head of Client Asset Oversight is appointed, whose duties will include the monitoring and reporting on all client assets matters to the Board of Directors of the Firm.
(i) The Compliance Department’s duties include the carrying out of checks, monitoring and reporting all of the above to the Board of Directors of the Firm.
(j) Employee systems access limited to relevant client information only, to eliminate the risk of a Conﬂict of Interest
(k) Staﬀ providing services to only one entity within the group and having deﬁned roles.
When a Conﬂict of Interest arises concerning a client, Global Shares will make a disclosure to the client in accordance with the MiFID Regulations. Global Shares will disclose the general nature and the source of the Conﬂict of Interest before undertaking business on the client’s behalf. Such disclosures, which apply irrespective of the categorisation of the client, should:
Speciﬁcally describe the conﬂict
Explain the general nature and/or source of the conﬂict
Explain the risks that arise to the client as a result of the conﬂict
Note the steps taken to mitigate the risks
Be made in a durable medium
Include detail suﬃcient for the client to make an informed decision on whether to proceed with the service giving rise to the conﬂict of interest
Clearly state that the organisational and administrative arrangements established by the Firm to prevent or manage that conﬂict are not suﬃcient to ensure that the client’s interests will be protected.
The description of the conﬂict should also take into account the nature of the clients to whom the disclosure is made.
Recording and Disclosure of Conﬂicts
The Compliance Oﬃcer maintains a Register of Conﬂicts of Interests. The Register will inter alia contain any actions taken to address the conﬂict, the value of the conﬂict and if applicable the client or supplier it relates to.
Where Global Shares becomes aware of a Conﬂict of Interest, it will disclose this conﬂict to a Client, before the Client performs any further actions for investment. Global Shares may also choose not to disclose the conﬂict to the client, if reasonably that disclosure is not the appropriate action to take to manage the conﬂict and that not to do so would be within the legal obligations on the Firm. In this case, Global Shares may choose to not proceed with the transaction or any other issue which gives rise to the conﬂict.
Should a client that does business with one group entity be oﬀered services from another group entity, full disclosure of the group relationship should be made so that the client may be aware of any beneﬁt to the ﬁrm as a group and any impact it may have on the client.
Gifts and Entertainment
Global Shares employees must disclose any gifts received from clients and gifts given to clients. Gifts must be recorded in the gift register. A valid business reason must be given for giving or receiving gifts. Approval must be sought from the CEO for receiving gifts with a value over €100. If such a gift is declined, it still must be recorded in the register.
Political contributions by Global Shares to politically connected individuals or entities with the intention of inﬂuencing such individuals or entities for business purposes are strictly prohibited.
Roles and Responsibilities
All Global Shares employees must advise their manager and the Head of Compliance of potential Conﬂict of Interest situations promptly, and in any event no later than 30 days from the date of becoming aware of the conﬂict, or in the case of a previous notiﬁcation, any new information must be disclosed as soon as is practically possible.
The Head of Compliance must ensure that all reasonable steps and eﬀorts are made to identify conﬂicts and that conﬂicts are managed appropriately.
The identiﬁcation of Conﬂicts of Interest is the responsibility of ALL employees
In advance of joining Global Shares, employees must disclose all external business interests and other potential conﬂicts including:
Directorships or partnerships and details of companies in which they have an interest or holding;
Any personal relationships with employees of Global Shares; and
Positions, business interests or relationships that would or could conﬂict with their principal employment with Global Shares.
In addition, employees have an on-going obligation to seek approval from the Risk & Compliance Oﬃcer, if they propose to become involved in or to accept an appointment in any of the activities described above.
Intra Group Relationships
As the Global Shares Group grows Global Shares’ individual companies will remain mindful to limit system access and sharing of information in the various entities to their relevant clients only to eliminate the risk of Conﬂicts of Interest.
Should a client that does business with one group entity be oﬀered services from another group entity, full disclosure of the group relationship should be made, so that the client may be aware of any beneﬁt to the ﬁrm as a group and any impact it may have on the clients
Any oﬃcer appointments to a Global Shares Group Company must be approved by the board of directors of Global Shares Plc.
Global Shares provides execution only and administration services rather than advisory services for Share Plans, it signiﬁcantly reduces the opportunity for Conﬂicts of Interest. Nevertheless, all staﬀ must remain alert to any conﬂicts that may arise during their work.
Reporting & Review
Material Conﬂicts of Interest will be escalated by the Risk & Compliance Oﬃcer to Senior Management, the Risk & Audit Committee and/or the Board of Directors. The conﬂicts of interest policy is to be reviewed at least annually and all appropriate measures must be taken by the Firm to address any deﬁciencies. The Firm must keep and regularly update a record of investment services and activities likely to give rise to conﬂicts of interest and senior management must receive a written report, at least annually, where conﬂicts of interest have arisen.
Order Recording Policy
This is Global Shares Execution Services Limited’s (“Global Shares” or the “Firm”) Order Recording Policy. The purpose of this policy is to outline how Global Shares complies with its statutory obligations. When clients of Global Shares place an order with Global Shares, they agree to the terms of this Order Recording Policy.
Under the EU Markets in Financial Instruments Directive 2014/65 EU (‘MiFID II’), as implemented by Statutory Instrument No. 375 of 2017 in Ireland (the “MiFID Regulations”), Global Shares is required to have an Order Recording Policy. The purpose of this document is to provide retail and professional clients with information on this Policy.
Global Shares must establish, implement and maintain an eﬀective policy appropriate to the size and organisation of the Firm, and the nature, scale and complexity of its business to record:
electronic communications, set out in writing; and
face to face meetings.
The policy must include, inter alia, the identiﬁcation of the telephone conversations and electronic communications, including the relevant internal telephone conversations and electronic communications subject to the recording requirements. In response to this it is Global Shares’ policy that in principle, calls and communications with the client and with external executing brokers and internal conversations and communications that result or could result in a client transaction should be recorded. Where the relevant communication is face to face, then the Firm should capture all the main points of the full conversation that are relevant to the relevant order.
Recording of Calls
Global Shares will record all telephone calls made from outside the Firm to the Firm’s telephone numbers. By making a telephone call to the Firm or to any Global Shares telephone number, the caller consents to the call being recorded for regulatory, training, quality assurance and other related purposes. All incoming calls to a Global Shares telephone number will commence with a pre-recorded message advising the caller that the call will be recorded.
All outgoing and internal calls which are commenced from a Global Shares telephone number will be recorded. In the case of outgoing calls, the caller should advise the recipient of the fact that the call will be recorded. It is not necessary to advise the recipient of this for internal calls.
Use of Mobile Phones
It is Global Shares policy that employees of Global Shares should neither make nor receive calls which that result or could result in a client transaction or which form part of a client transaction on their mobile telephones. If an employee of Global Shares received such a call on a mobile phone, that employee should politely terminate the call having indicated that the caller should call on a recorded Global Shares telephone line.
Face to Face Meetings
It is Global Shares policy that any meeting or face to face discussion which results or could result in a client transaction or which form part of a client transaction should be recorded in a written note which is prepared either contemporaneously or shortly after the meeting or discussion concerned. The note should accurately and adequately summarise the meeting. That note may be prepared electronically or in paper form and must be stored on Global Shares facilities.
Global Shares Execution Services Limited , is regulated by the Central Bank of Ireland under registration number C140575. For further information please contact +353 23 8833062.
RTS 28 Disclosure
Class of Instrument Equities – Shares & Depositary Receipts (T12)
Notiﬁcation if < 1 average trade per business day in the previous year.
Top ﬁve investment ﬁrms ranked in terms of trading volumes (descending order)
Proportion of volume traded as a percentage of total in that class
Proportion of orders executed as a percentage of total in that class
Percentage of passive orders Percentage of aggressive orders
Percentage of direct orders
RBC Cap Markets -TXDSU46SXBWIGJ8G8E98
52.40% 52.40% 0.00% 0.00% 0.00%
Winterﬂood Securities Limited- 8BRUP6V1DX3PIG2R0745
42.20% 42.20% 0.00% 0.00% 0.00%
Numis Securities Limited – 213800P3F4RT97WDSX47