Is additional information about its execution policy which a firm that executes orders/decisions to deal should disclose to its professional clients?

An investment firm executing orders or decisions to deal on behalf of retail clients should disclose the following in good time prior to the provision of the service:

1. The relative importance the firm assigns to the best execution factors, or the process by which it determines their relative importance,
2. List of the execution venues on which the firm places significant reliance in meeting the overarching execution requirement,
3.  A warning to the client regarding the use of specific instructions.

SEBI (Securities and Exchange Board of India) considers that where a retail client requests additional information about a firm’s execution policy and such a request is reasonable and proportionate, the firm, by virtue of its duty to act fairly and professionally, should consider honouring such a request, especially where such information is needed to enable the client to make a properly informed decision about whether to utilise, or continue utilising, the services of the firm.