Regulatory Alerts2018-04-01
Circular F.S. 26: Transactions in Gilt- and Semi-Gilt-Edged Securities
The Financial Institutions Office has issued Circular F.S. 26 to prohibit financial institution employees from engaging in unrecorded personal trading and accepting undisclosed commissions for sharing confidential market information. The regulator classifies these activities as highly irregular and potentially fraudulent due to the inherent conflict of interest and breach of fiduciary duty to employers. All friendly societies must immediately audit their staff for involvement in these practices and submit a written report by 15 August 1983 detailing any occurrences, discontinuation status, and specific transaction records, accompanied by an auditor-signed acknowledgement form.
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