Policies

ANTI-BRIBERY AND CORRUPTION


YES Financial Sdn Bhd does not abide with all forms of bribery and corruption. Our Anti-Bribery and Corruption Policy (hereinafter referred to as “the policy”) reflects our measure to support the national anti-bribery and anti-corruption effort. All members of the Board of Directors, staffs, Licensed Representatives and related parties are guided by the policy and other applicable regulations on anti-bribery and anti-corruption.

5 guiding principles are laid down in the Guidelines on Adequate Procedures (hereinafter referred to as “GAP’) whereby the companies must on hold GAP as a model for the establishment of the policy in the operation of companies. Bearing in mind the principles, the Board of Directors and Senior Management will continue to ensure the effectiveness of the anti-bribery and anti-corruption guidelines outlined in the policy. The Board of Directors and Senior Management will conduct independent reviews and tests of the guidelines on a regular basis, focusing on its structure, execution, and efficacy.

Board of Directors, staffs, Licensed Representatives and related parties of YES Financial Sdn Bhd are forbidden from receiving any payment, accepting or receiving any gifts and/or entertainment from any other individuals that undermine their professional judgement, or may create the impression of doing so, in accordance with YES Financial Sdn Bhd intolerance approach to all types of bribery and corruption. This applies vice-versa where the Board of Directors, staffs and Licensed Representatives are prohibited from offering gifts and/or entertainment to any individuals that would fall against the policy. The individuals hereinbefore mentioned should not put themselves in a position of conflict of interest with their duties in YES Financial Sdn Bhd.

The Malaysian Anti-Corruption Commission Act 2009 (hereinafter referred to as “MACC Act”) and the Prime Minister’s Directive with regards to anti-bribery and corruption are reflected in the summary of policy sets out herein.

A) TOP LEVEL COMMITMENT
YES Financial Sdn Bhd will maintain the highest standards of honesty and ethics, completely comply with all relevant anti-bribery and corruption laws. Board of Directors and Senior Management will schedule to meet and do meet on a regular basis to discuss all relevant risks including money laundering, bribery and corruption risks. The Board of Directors and Senior Management are responsible for instilling a policy of intolerance for bribery and corruption. The Board of Directors and Senior Management are responsible in ensuring that the policy is effectively implemented to combat any possible or actual cases of corruption. The Board of Directors and Senior Management are responsible for ensuring there are appropriate and adequate systems, controls and procedures to identify corruption and bribery. Board of Directors and Senior Management are to be aware of, and to enforce, the implications of violating the Anti-Bribery and Corruption Policy. Any breaches would be reported to Board of Directors and Senior Management for further actions to be taken.

B) RISK ASSESMENT
Risk assessment is the basis for a comprehensive anti-bribery and corruption programme in YES Financial Sdn Bhd. It is a mechanism for identifying, analyzing, assessing and prioritising the company’s internal and external bribery and corruption threats. Risk assessment allows the company to have better perspective on how to design policies and procedures accordingly.

YES Financial Sdn Bhd will perform risk assessments on a regular basis and if there is a change in the law or the business situation to detect, analyse, and mitigate corruption and bribery. The Senior management will determine and select designated staff to perform the corruption risk assessment that will be performed every three years. The findings will be documented and reported to the top level management to seek for guidance on further actions required.

C) UNDERTAKE CONTROL MEASURES
YES Financial Sdn Bhd implemented and put in measures to control bribery and corruption risks. Such measures include due diligence, implementing confidential reporting channels to promote whistleblowing and to prohibit retaliation against reports made in good faith and establishing clear policies to govern matters relating to potential corrupt activities (for example, gifts, conflict of interest, donations). These controls are based on the findings of the risk assessment and are used to reduce risks in areas that have been classified as higher risk.

  • Due Diligence
    All Licensed Representatives will undergo management interview and first level due diligence. The selected individuals who passed the first level due diligence will sign the FAR/FPR Agreement. The selected individuals who passed the first level due diligence will undergo second level due diligence before proceed to notify the regulatory bodies.
  • Promote Culture of Integrity
    Yes Financial Sdn Bhd maintains Code of Conduct within our organization. Licensed Representatives and related parties who advises or acts on behalf of a client must ensure that any representations made and information provided to the client are accurate and not misleading. Licensed Representatives must not recommend or effect a transaction for a client unless he or she has taken reasonable steps to ensure the client understands the nature of the risks involved and any subsequent liabilities. When providing advice to a client, a Licensed Representatives shall act diligently and ensure that his/her advice and recommendations in relation to clients are based on through analysis and available alternatives are considered. Licensed Representatives should exercise careful discretion in the selection of recommendations. It is their responsibility to ensure that advise is in accordance with the constitutive documents.
  • Whistle Blowing Policy
    In order to achieve this goal of a corruption-free business climate, YES Financial's Whistleblowing Policy allows staff, business partners, and all third parties (including clients) to disclose any unethical activity (including disciplinary or criminal offences, actions and omissions) by Licensed Representatives, its employees or related parties that violates any rules, guidelines, or policies. The reporting of improper conduct can be made to johnchan@yesadvisers.com
  • General Anti-Bribery and Corruption Policy
    YES Financial Sdn Bhd is committed to conduct its operations in an ethical, responsible, transparent and efficient manner plus inspires to reinforce good governance, preventive system and ensuring compliance to procedures, code of conduct and relevant laws in place. The management of YES Financial would like to stress the importance of a zero tolerance approach to bribery and corruption in any actions and decisions taken, both internally and externally. YES Anti-Bribery and Corruption Policy laid down principles in dealing with improper solicitation, bribery and other corrupt activities and related issues that may arise in the company day to day operations. This policy also applies to Board of Directors, Senior Management, Licensed Representatives, employees and any external parties who have interest in YES Financial Sdn Bhd. The policy was developed in accordance with the guidelines issued pursuant to the subsection (5) of section 17A of the Malaysian Anti-Corruption Commission Act 2009 (Act 694).
  • Conflict of Interest
    Where a Licensed Representative has material interest in a transaction with or for a Client or relationship which gives rise to an actual or potential conflict of interest in relation to such transaction, the Licensed Representative must not advise on or deal in relation to the transaction unless it has disclosed that material interest conflict to the Client and has taken reasonable steps to ensure fair treatment to the Client.
  • Policy on Giving Out Gifts, Entertainment, Hospitality and Travel
    Gifts
    YES Financial Sdn Bhd forbids its employees, licensed representatives and related parties from receiving or offering gifts or other monetary benefits that could affect or sway decisions that would jeopardise the institution's day-to-day operations. Employees are further forbidden to offer any advantage to a public servant or any persons representing any public body as an inducement to procure a contract. Employees should seek authorization from the Directors before engaging in any gifts giving or other promotional activities.

    However, the company recognises that gift exchange is a delicate matter in which gift giving is traditional, a ritual, or a fundamental part of business etiquette in some cultures or circumstances. As a token of good will, it is common practise for businesses to send small tokens of gratitude to the people for whom they work or do business. Hence, this is exception to the general rule that prohibits giving out gifts. Corporate gifts, festive or ceremonial gifts may be given to relevant parties provided it must always be approved by the management under normal business hospitality grounds. It should be clearly given as an act of appreciation or common courtesy associated with ceremonial occasions or festive seasons in some scenarios.

    Entertainment
    Staff, Licensed Representatives and related parties should provide acceptable and proportionate entertainment that is legal and fair within their scope, as well as use caution and good judgement when entertaining external parties, especially when it involves public/government officials and clients.

    When it comes to accepting entertainment, all staffs, Licensed Representatives and related parties act with dignity at all times. The company also recognises the legitimate use of acceptable and proportionate entertainment provided by third parties that is legal and fair as a legitimate way to network and establish relationships.

    Hospitality
    YES Financial Sdn Bhd recognizes that providing corporate hospitality through corporate events or other public events are a legitimate way to network, promote goodwill and build relationships with third parties.

    When delivering corporate hospitality, the company is committed to following all relevant rules. When offering corporate hospitality to elected employees, Licensed Representatives and related parties must exercise extreme caution. It must not be given, or give the impression that it is being given, in order to obtain some kind of advantage or unduly influence the outcome of a decision made or to be made.

    Travel
    YES Financial Sdn Bhd deems it is appropriate for external parties to incur travel-related expenses for staff who are engaged on matters such as being an invited speaker. However, the travel must first be approved by the director.
  • Donations and Sponsorships, Including Political Donations
    YES Financial Sdn Bhd will not make any kind of contribution or sponsorship to political parties or individual politicians, or to political campaigns on behalf of or for the company. However, staffs, Licensed Representatives and related parties are free to engage in political events in their own time and with their own money. Political opinions and decisions expressed by them are their own and do not constitute or represent YES Financial Sdn Bhd.
  • Facilitation Payments
    YES Financial Sdn Bhd follows a zero-tolerance policy that prohibits any kind of facilitation payments or kickbacks. Our Licensed Representatives and employees are prohibited from engaging in any behaviour that may result in the payment or acceptance of facilitation fees or kickbacks.
  • Procurement of Goods and Services
    All procurement of goods and services must be approved by the director before a contract is signed with the vendor. Due diligence must be properly conducted before engaging with a vendor. All documentations must be recorded along with the appropriate approvals.


D) SYSTEMATIC REVIEW, MONITORING AND ENFORCEMENT
YES Financial Sdn Bhd will ensure that regular reviews are conducted to assess the efficiency and effectiveness of the anti-bribery and corruption programme. The reviews shall form the basis of any efforts to further improve the existing anti-bribery and corruption controls in place in the company. Senior management officers are advised to implement monitoring programmes to ensure the company follows standard of compliance with its policies and procedures.

YES Financial Sdn Bhd will engage external independent auditors once every three years to undertake these systemic reviews. The outcome of audit assessments is reported to the Board of Directors and senior management on a timely basis for deliberation/decision. Appropriate enforcement actions will be taken in accordance with the severity of the offences.

In the event an employee, director, licensed representatives who is concerned in the affairs of the company breaches the Anti-Corruption and Bribery Policy, the company have in place consequent management policies to take the appropriate action.

E) TRAINING AND AWARENESS
YES Financial Sdn Bhd, employees, Licensed Representatives and related parties will be provided with regular anti-corruption compliance training programmes. This is to educate them about the requirements and obligations of anti-bribery and corruption laws. For successful compliance of the policy, Yes Financial Senior Management Team will be responsible to ensure continuous efforts to communicate, train and educate all employees, Licensed Representatives and related parties.

ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING


INTRODUCTION
YES Financial Sdn Bhd unequivocally objects to all practices related to money laundering, including dealing in the proceeds of criminal activities and terrorism financing. As our principle, reasonable degree of due diligence must be carried out in order to understand the business and background of any prospective customer, vendor, third party or business partner that intends to do business with YES Financial Sdn Bhd to determine the origin and destination of money or assets involved. Any suspected activities relating to money laundering or terrorism financing should be reported immediately to Bank Negara Malaysia and relevant authorities. YES Financial Sdn Bhd prohibits all involvement in money laundering activities and terrorism financing whether directly or indirectly.

RISK BASED APPROACH
The possibility of being used to assist with money laundering and terrorist financing poses many risks to YES Financial Sdn Bhd, including civil action against the company and damage to reputation leading to loss of business.

These risks must be identified, assessed and mitigated, which are done for all business risks facing by YES Financial Sdn Bhd. The Company believes that if it knows its client well and understands its requirements thoroughly, it will be better placed to assess risks and spot suspicious activities.

Risk-based approach means that YES Financial Sdn Bhd focuses its resources on the areas of greatest risk. This approach is more efficient and effective use of resources proportionate to the risks faced. It minimized compliance costs and burdens on clients and there is greater flexibility to respond to emerging risks as laundering and terrorist financing methods change.

CUSTOMER DUE DILIGENCE
Effective Customer Due Diligence "know your customer" ("CDD") measures are essential to the management of money laundering and terrorist financing risk. CDD is identifying the client and verifying their true identity on the basis of documents, data or information obtained from a reliable and independent source both at the moment of starting a business relationship and on an ongoing basis.

Licensed representatives of YES Financial Sdn Bhd shall verify the customer’s identity in the following situations:
(1) When establishing business relations with the customer;
(2) When undertaking any temporary transactions of specific amount;
(3) When there is a suspicion of money laundering or terrorist financing;
(4) When they have doubts about the veracity or adequacy of previously obtained customer identification data.

YES Financial Sdn Bhd will not keep anonymous accounts or accounts in fictitious names. Customers who fail to provide evidences of identity will not be allowed to engage in business relations with YES Financial Sdn Bhd.

SUSPICIOUS TRANSACTION REPORTING
If any suspicious money laundering or financing of terrorism activities are detected these transactions must be reported to the Compliance Officer immediately-via Internal Suspicion Report.

Upon receiving the report, the Compliance Officer shall evaluate the grounds for suspicion and if suspicion is confirmed he or she shall submit a suspicious transaction report (STR) to the Financial Intelligence Unit in Bank Negara Malaysia.

Internal suspicious transaction reports will not to be disclosed to anybody other than to the Compliance Officer and Chief Executive Officer. The Compliance Officer making an STR is protected from civil, criminal or disciplinary action in respect of any information contained in the report.

The Compliance Officer is obliged to keep records in a form that will allow a transaction to be completely reconstructed at any time by the authorities. All STR records are to be kept for a period of at least seven years.

TRAINING
YES Financial Sdn Bhd will ensure ongoing training programmes are conducted to keep its board of directors, employees, licensed representatives and related parties abreast on matters under the AMLATFA This is to educate them about the requirements and obligations under the law.

WHISTLEBLOWING


INTRODUCTION
YES Financial core values are integrity, transparency, probity, and responsibility. The company has a duty to conduct its affairs in a responsible and transparent way in decision-making, good governance and ethical behavior. Despite the best efforts put in place on matters relating to governance, rules and regulations, unfortunately malpractices, abuses and/or wrongdoings may still occur.

As part of this commitment, the company has developed a Whistleblowing Policy to provide a formal and confidential secured avenue for employees, licensed representatives and/or external parties to raise legitimate concerns with regard to illegal, unethical or questionable practices without the risk of reprisal. The whistleblowers may raise/escalate complaints to the appropriate level of authority on such malpractices, abuses or wrongdoings at an early stage and in an appropriate manner, without fear of being prejudiced, unfairly persecuted, victimized, discriminated against or disadvantaged.

The type of misconduct may include but not limited to the following:
a) Financial malpractice or impropriety or fraud;
b) Bribery and corruption acts;
c) Improper conduct or unethical behavior;
d) Failure to comply with a legal or regulatory obligation;
e) Failure to disclose conflict of interest;
f) Abuse of power;
g) Financial losses to the company;
h) Publication of confidential document;
i) Theft;
j) Sexual harassment;
k) Noncompliance with company procedures; and
l) Criminal activities.

WHO CAN WHISTLEBLOW?
a) Any employee within YES Financial Sdn Bhd;
b) Licensed representatives;
c) Any related parties; or
d) Public.

PROTECTION TO WHISTLEBLOWER?
The Whistle blower upon making a disclosure bona fide and based on reasonable grounds:
a) are protected from reprisal within the company as a direct consequence of his or her disclosure;
b) have immunity from civil and criminal action;
c) have protection from detrimental action; and
d) the whistleblower’s identity shall be kept confidential unless otherwise required by law or for the purpose of any proceedings by or against the company.
In the event the findings reveal that the whistleblower was mistaken about the facts and regulations involved, the whistleblower would still be protected.

REPORTING CHANNEL
Disclosures can be made through ANY of the following channels:
(a) Email to the following email address: johnchan@yesadvisers.com.
OR
(b) In writing and mail/hand-deliver* to:

Mr. John Chan Ninyii
YES Financial Sdn Bhd
27-1F & 2F, Precinct 1@Sunway Wellesley,
Jalan Muthu Palaniappan,
14000 Bukit Mertajam,
Penang.

*must be sent in a sealed envelope with the words “strictly confidential”.
Please also state on the top left-hand corner of the envelope: "To be opened by the Addressee only”.