Managing Assets
Discretionary Asset Management
InvestIN intends to manage client’s assets on a discretionary basis. In doing so, the firm will make investment decisions on their behalf in accordance with the mandate it receives from the client. The mandate will set out the types of financial instruments to be invested in and the composition of the client’s portfolio. The firm will ensure that the strategy and mandate is suitable for the client by conducting a suitability and risk profile assessment to ensure that the client has sufficient understanding, experience, and is aware of the risks involved with InvestIN in the financial market. The client’s assets will be held in the firm’s client money account.
Before we open a client money account, we will undertake an assessment of that custodian to conclude, on reasonable ground, that it is suitable to hold the client money in a client account. When assessing the suitability of the custodian, we will take the following factors into account before deciding on a custodian:
• Credit rating of the custodian (AA, A+ etc.);
• Its capital and financial resources in relation to the amount of safe custody investments held;
• The insolvency regime of the jurisdiction in which it is located;
• Its arrangements for holding the investments;
• Its regulatory status, expertise, reputation and history;
• Its Group structures;
• Its use of agents and service providers.
Asset Management by the way of limited power of attorney (LPOA)
In addition, the firm will also manage client assets on a non-discretionary basis. In this instance, the client will provide their approval before any trade or investment is executed on their behalf. Only after the client has provided their consent will the investment order be executed on the platform of choice. As part of its customer onboarding process, the firm will carry out an assessment on the client to determine their risk appetite, investment objectives, knowledge and experience. In addition, will also conduct an assessment of each financial product to ensure it is suitable for the client.
Access to the client’s accounts shall be provided by a LPOA which will be granted to InvestIN by the client for the purpose of managing their assets. We will be given access to the client accounts opened with the Custodians / Banking Institutions in the clients’ name Access to client accounts are granted by means of issuing a limited Power of Attorney in the name of the Firm. The LPOA will detail all non-discretionary/advisory power delegated to InvestIN, and the method by which the service will be provided. The portfolio manager will continuously monitor the client’s portfolio, and the client will also be able to do the same.
The firm is aware of its obligation to ensure that it conducts thorough due diligence checks on any custodian that will hold client assets as per the DFSA rulebook. When the firm has such mandate or other equivalent power over a client’s assets with a third party, it will ensure that:
• It maintains records of all transactions for a minimum of 6 years after the transaction was executed.
• Both the firm and client have access to portfolio statements.
• Perform continuous monitoring on the client’s portfolio and share the same with the client.
• At least every 25 business days, reconcile its records of client money and safe custody.
• Investments held with third parties with the monthly statements it receives from those third parties.
• At least every 6 months, reconcile individual client ledger balances with the records it maintains of Safe Custody Investment balances held in client accounts.
• Notify the DFSA when material discrepancies with the reconciliation have not been resolved.
• Ensure that the process of reconciliation does not give rise to a conflict of interest.
The main investment products the firm will manage are, Shares, Debentures, Warrants, Certificates, Units, Options, Futures, and Structured Products.
