The Firm's investment policy could aptly be summarized as:
- Protect the principal investment capital.
Each potential transaction is carefully analyzed in accordance with a pre-determined formula for maximum safety and profitability. In all cases the Firm controls risks at the banking level, seeking to ensure that the Investor's greatest risk is limited to the potential failure of the selected depository institution.
In a "riskless principal" arbitrage transaction, when a trader purchases the Securities, he or she has already lined up (contracted with) an investor-buyer who has agreed to the terms of the resale (the secondary private placement, or "on-sale") at a beneficial higher price (the "spread"). The exposure to many risks associated with trading Securities are virtually eliminated due to the extremely short period the Firm/Investor technically owns the Securities or an interest therein. The Firm also employs certain proprietary methods to "transfer" and manage risks, maintaining the principal investment capital.
Looking after our customers is basic to all our business relationships. We promise only what we can deliver and we strive never to mislead our customers. In conducting business with due skill, care and diligence, IFC seeks always to comply with both the letter and the spirit of relevant laws, rules, regulations, codes and standards of good market practice.
We address any irregularities that arise promptly, we seek to resolve them promptly in a way that protects our reputation and minimises financial loss. We believe in transparency in our financial and regulatory reporting with swift disclosure of any breaches. We co-operate with supervisors and regulators to attain and maintain the highest operating standards to safeguard the interests of our customers, our shareholders, our staff and the communities where we operate.
IFC supports the general policies set out in the OECD Guidelines for Multinational Enterprises, which are designed to ensure that we operate in harmony with the policies of the countries in which we operate. We support and comply with the Statement of Principles issued by the Basle Committee on Banking Regulations and Supervisory Practices. We support the policies and procedures of the Vienna and Strasbourg Conventions against drug-trafficking and money-laundering, and also the various United Nations conventions and resolutions combatting terrorism.