Responsible person, department head, branch manager, fund manager, or spouses thereof, when Regulations Governing acting as a director, supervisor, or managerial officer Responsible Persons and of a securities issuing company, or as a shareholder Management of Paragraph 1 of Associated Persons of holding 5 percent or more of the total outstanding conflicts of Article 15 Securities Investment shares of a securities issuing company, may not interests Trust Enterprises participate in decision making regarding trades when the SITE utilizes the securities investment trust fund to trade in securities of such issuing company. Practice Principles for the Prevention of Conflict of Interest of SITEs/SICEs The exemplification of the fiduciary duty is to treat Management of Concurrently Conduct Article 1 the investor's benefits as the top priority when facing conflicts of Other Business or Be conflicts of interests with investors. interests Conducted Concurrently by Other Business Regulations Governing The "fund investments" shall contain the following Information to be information: Published in 6. Principles and methods for handling exercise of Subparagraphs 6 Prospectuses by voting rights when a fund participates in shareholders' Establishment of a and 7, Paragraph Securities Investment meeting of stock-issuance companies. clear voting policy 1 of Article 13 Trust Enterprises 7. Principles and methods for handling exercise of Offering Securities voting rights when a fund participates in meetings of Investment Trust Funds beneficial owners of funds held. A securities investment trust enterprise offering a fund shall utilize the fund's assets in accordance with these Regulations and the provisions of the trust Regulations Governing Subparagraph 5, agreement, and except where otherwise provided by Management of Securities Investment Paragraph 1 of the FSC, shall comply with the following provisions: conflicts of Trust Funds Article 10 5. The SITE may not invest in its own securities or in interests securities issued by any company that is an interested company relative to the securities investment trust enterprise. Annex 3: Stewardship principles adopted by the United Kingdom, Japan, Malaysia and Hong Kong Country Authority Name of Scope of Legal principles application effect Asset owners, Financial Reporting The UK Comply or The UK asset managers and Council (FRC) Stewardship Code explain service providers Principles for Financial Services Agency Responsible Asset owners, Comply or Japan (FSA) Institutional asset managers explain Investors Securities Commission Malaysian Code for (SC) and Minority owners, asset Comply or Malaysia Institutional Shareholder Watchdog managers explain Investors Group (MSWG)
Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises Paragraph 1 of Article 15 Responsible person, department head, branch manager, fund manager, or spouses thereof, when acting as a director, supervisor, or managerial officer of a securities issuing company, or as a shareholder holding 5 percent or more of the total outstanding shares of a securities issuing company, may not participate in decision making regarding trades when the SITE utilizes the securities investment trust fund to trade in securities of such issuing company. Management of conflicts of interests Practice Principles for the Prevention of Conflict of Interest of SITEs/SICEs Concurrently Conduct Other Business or Be Conducted Concurrently by Other Business Article 1 The exemplification of the fiduciary duty is to treat the investor's benefits as the top priority when facing conflicts of interests with investors. Management of conflicts of interests Regulations Governing Information to be Published in Prospectuses by Securities Investment Trust Enterprises Offering Securities Investment Trust Funds Subparagraphs 6 and 7, Paragraph 1 of Article 13 The "fund investments" shall contain the following information: 6. Principles and methods for handling exercise of voting rights when a fund participates in shareholders' meeting of stock-issuance companies. 7. Principles and methods for handling exercise of voting rights when a fund participates in meetings of beneficial owners of funds held. Establishment of a clear voting policy Regulations Governing Securities Investment Trust Funds Subparagraph 5, Paragraph 1 of Article 10 A securities investment trust enterprise offering a fund shall utilize the fund's assets in accordance with these Regulations and the provisions of the trust agreement, and except where otherwise provided by the FSC, shall comply with the following provisions: 5. The SITE may not invest in its own securities or in securities issued by any company that is an interested company relative to the securities investment trust enterprise. Management of conflicts of interests Annex 3: Stewardship principles adopted by the United Kingdom, Japan, Malaysia and Hong Kong Country Authority Name of principles Scope of application Legal effect The UK Financial Reporting Council (FRC) The UK Stewardship Code Asset owners, asset managers and service providers Comply or explain Japan Financial Services Agency (FSA) Principles for Responsible Institutional Investors Asset owners, asset managers Comply or explain Malaysia Securities Commission (SC) and Minority Shareholder Watchdog Group (MSWG) Malaysian Code for Institutional Investors owners, asset managers Comply or explain
00000000514168330151906b4a65000a_Stewardship%20Principles%20for%20Institutional%20Investors%20Draft%20for%20Public%20Comment.docx