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Barclays Bank PLC (together with its affiliates “Barclays”) is a foundation investor in Barrenjoey Capital Partners Group Holdings Pty Limited ACN 644 241 510 (“Barrenjoey Holdings” and together with its affiliates, “Barrenjoey”) and Barclays has entered into a Co-operation Agreement (the “Cooperation Agreement”) with Barrenjoey Holdings, the parent company of Barrenjoey Markets Pty Limited ACN 636 976 059. The Co-operation Agreement states that Barclays views Barrenjoey Holdings as its strategic ally in Australia and New Zealand.
Barclays currently has a 18.2% economic interest and a 4.99% voting interest in Barrenjoey Holdings and has a representative on the board of directors of Barrenjoey Holdings.
The Cooperation Agreement covers product distribution, research, cross border advisory and debt capital markets, and Barclays makes available significant balance sheet capacity for Barrenjoey to support its clients.
In connection with this arrangement, Barclays may share some or all of its revenues, fees and/or commissions with Barrenjoey and Barrenjoey may share some or all of their revenues, fees and/or commissions with Barclays.
As shareholder, Barclays is not involved in the day-to-day management of Barrenjoey. Barclays does not control Barrenjoey.
Barclays operates financial services businesses that are separate from Barrenjoey.
Joint business activities
Barclays has entered into the Cooperation Agreement to enable it to offer its clients access to key capital markets and cross-border investment opportunities in Australia, New Zealand and other countries through Barrenjoey, whilst providing Barrenjoey’s clients access to Barclays’ strong capabilities in the UK, Europe, and other key Asian markets.
Drawing on Barclays’ and Barrenjoey’s complementary capabilities, the parties will undertake joint activities in relation to the sales and trading of certain financial instruments.
For cash equities:
(i) Barrenjoey will be the sole executing broker and liquidity provider for Barclays for high touch executions in Australia and New Zealand securities subject to best execution requirements and the absence of any adverse event in respect of Barrenjoey which in the reasonable opinion of Barclays would make it inappropriate to use Barrenjoey as such broker and provider; and
(ii) Barclays will be the sole executing broker and liquidity provider for Barrenjoey for high touch executions in non-Australian and New Zealand securit
Where a client trades any of the products mentioned in (i) above, the client will pay a commission to Barclays (that is based on the commission rate agreed by Barclays and the client) and Barclays will pay 100% of this commission to Barrenjoey. The exact amount Barclays pays to Barrenjoey for each trade will therefore be the amount that is specified as the “Commission/Commission Equivalent” (or such other similar term) in the trade confirmation that the client receives after execution of the trade.
For the products mentioned in (ii) above, Barclays will receive all the commissions Barrenjoey receives from its clients for those trades.
As noted above and subject to the Conduct Risk control framework referenced below, Barclays and Barrenjoey may share: (1) revenues, fees and/or commissions in connection with the joint activities above; and (2) confidential information, necessary to give effect to these arrangements. Barrenjoey may also generate indications of interest (“IOIs”) in relation to the products mentioned in (i) above with Barclays. Clients should therefore note that some of the IOIs that they receive from Barclays may have originated from Barrenjoey and Barclays will in good faith endeavor to notify clients of this. The origin of an IOI can also be made available upon request.
Further information on the above arrangements may be made available upon request. For the avoidance of doubt, the arrangements above exclude any cash equities execution that is conducted through Barclays’ Prime Quantitative Prime Services (“QPS”) team which houses Barclays’ low latency execution business.
Disclosure of information
In order to effect the cash equities joint business activities described above, Barclays will be disclosing some or all of the following information to Barrenjoey: client’s name, trades and instruction details, commission rates, axes, indications of interest and feedback provided by clients regarding why a trade was not executed or why a trade was executed at a particular price. Each relevant client is deemed to signify its consent to such disclosure by conduct when it places its instructions with Barclays for trades that fall under the joint business activities described above, and such consent by conduct shall override any non-disclosure or other confidentiality agreements or arrangements it may have in place with Barclays either now or in the future unless such agreement or arrangement expressly references this consent to disclose. Save for the consent described above, the existing non-disclosure or other confidentiality agreements or arrangements that a client has in place with Barclays (including, without any limitation, any confidentiality agreements or arrangements entered into with Barclays’ QPS business and/or Barclays’ prime brokerage business) will remain in full force and effect.
Risk control framework
Consistent with our commitments and responsibilities, Barclays has developed a robust Conduct Risk control framework to manage our legal, regulatory and reputational risks, including any actual, potential or perceived conflict of interest. This control framework includes, but is not limited to, the following arrangements:
· Information barriers intended to ensure that Barclays’ business is independent from that of third parties, including related parties (such as Barrenjoey), and that access to information, including client confidential information, is appropriately restricted;
· Conflict clearance and business selection procedures followed prior to engaging in any joint client activity with any third party, including Barrenjoey;
· Information sharing protocols for any joint business activities, which would apply where such joint business activities are undertaken with Barrenjoey and would limit information shared to what is necessary to give effect to the joint activities and ensure that such information cannot be used for any other purpose;
· Fair allocations policies for capital markets transactions; and
· Best execution policies that require Barclays to take sufficient steps to obtain the best possible result for its clients on a consistent basis when executing transactions on their behalf.
For more information please see: https://www.cib.barclays/disclosures/N2FcdRWQo4/conflicts-of-interest-policy-summary.html