INMA 9B.1.5 Dealing and managing — best execution
(1) If an INMA firm agrees, or decides in the exercise of its discretion, to execute a transaction with or for a customer in relation to a relevant investment, it must provide best execution.
(2) However, the INMA firm need not provide best execution if:
(a) it only arranges the transaction for the customer;
(b) the market in the relevant investment is insufficient to allow for a meaningful price comparison;
(c) the customer is a business customer and the firm has agreed with the customer that it will not provide best execution; or
(d) another person is responsible for the execution of the transaction and has undertaken to provide best execution.
(3) To provide best execution for the transaction, the INMA firm:
(a) must take reasonable care to find out the best available price in the relevant market at the time for transactions of the same kind and size; and
(b) must execute the customer order for the transaction at a price that is no less advantageous to the customer, unless the firm has taken reasonable steps to ensure that it would be in the customer's best interests not to do so.
(4) To take reasonable care under subrule (3) (a), the INMA firm:
(a) must calculate the best execution price before any previously disclosed charges that might be payable;
(b) must not take a mark-up or mark-down;
(c) must pass on to the customer the price at which it executes the transaction to meet the customer order; and
(d) if it can access prices displayed by different exchanges and trading platforms and make a direct and immediate comparison — must execute the customer order at the best price available if it is in the best interest of the customer to do so.
|Inserted by QFCRA RM/2019-4 (as from 1st January 2020).|