Customer-First Business Management Policy
1. Stipulation and release, etc. of SRM’s customer-first business management policy
In order to establish and execute customer-first business management, we have stipulated and released a Basic Policy for Customer-First Business Management. Based on this policy, we aim to obtain the trust of society as a whole by contributing to economic and social prosperity through sound business management and provision of high-quality services as a team of professionals. We also continuously review the status of our execution of this policy and revise it as necessary to achieve better business management.
Initiatives
Each year we conduct internal monitoring, reserve time to review the policy, and disclose the status of the policy and its initiatives on our website.
2. Pursuit of the best interests of customers
With “customers first” as the main principle, we do our utmost to provide excellent investment opportunities and services as real estate professionals. We also are committed to performing our business faithfully and fairly, emphasizing transparency and complying with laws, ordinances and any other regulations.
Initiatives
・Based on the above policy, we conduct various initiatives as outlined below.
・Our high levels of specialization and professional ethics as a real estate company are described in the following pages.
For more information, please see our specific examples of initiatives to support the development of human resources.
・We report on the performance of our private funds as appropriate in accordance with management agreements, etc. Furthermore, the performance of each REIT under management is disclosed on each REIT’s website as appropriate. For more information, please consult each REIT’s website.
→ SC Realty Private REIT, Inc.
*Unitholder password is required.
Please refer to the Strengths of SRM (core competence) section for more information on our initiatives aimed at establishing a stable client base and securing revenue.
3. Proper and fair management of conflicts of interests
Please refer to specific examples of governance initiatives for our initiatives to prevent conflicts of interest. We stipulate basic matters related to transactions with related parties, such as our internal rules on related-party transactions, so that the interests of customers are well protected and not harmed. Specifically, when conducting a related-party transaction as specified in our internal rules on related-party transactions, in accordance with procedures prescribed in these rules, we obtain the approval of our Compliance & Risk Management Committee, which includes external experts.
Initiatives
→ Please refer to specific examples of governance initiatives.
| Year | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| The number of Compliance & Risk Management Committee held | 15 | 19 | 17 | 15 |
4. Clarification of fees, etc.
As for the fees paid by customers, we provide sufficient information to enable customers to understand the details of the fees and are committed to providing appropriate and adequate explanation so as not to cause customer misunderstanding.
Initiatives
As a rule, the fees and commissions, etc., we receive consist of fees incurred at acquisition, fees incurred during the term, and fees incurred on sale by investment corporations, private funds, and investors. We will provide information that our clients can understand by clarifying and carefully explaining contract documents, product overviews, securities registration statements, management reports, etc. In addition, the management fee structure of SOSiLA Logistics REIT, Inc. is available on its website.
→ （SC Realty Private REIT, Inc. ）IR Library
*Unitholder password is required.
5. Provision of important information in a comprehensible manner
When providing important information, we are committed to providing accurate and comprehensible information so as not to cause customer misunderstanding.
Currently, we do not sell or promote products that package multiple financial products.
Initiatives
(Listed REIT and Private REIT)
We disclose information through press releases on each REIT’s website as appropriate.
For more information, please refer to the press releases of SOSiLA Logistics REIT, Inc. and SC Realty Private REIT, Inc. (*unitholder password is required).
(Private funds)
In addition to reporting according to the contents of the management contract as appropriate, we deliver regular management reports.
6. Provision of services suitable to customers
We are committed to providing appropriate financial products and services in accordance with the level of knowledge, investment experience, financial condition and transaction purpose, etc. of customers.
Currently, we do not sell or promote products that package multiple financial products.
Initiatives
Private funds are investment products that mainly target specific investors and because the characteristics of funds varies from one fund to the next, we provide information to help clients make informed investment decisions.
For private REIT (SCRP), we provide financial results for each fiscal period, earnings forecasts for the next fiscal period, as well as IR activities to the unitholders. SCRP’s unitholders can access this information on SCRP’s website using a special password.
For listed REIT (SLR), we conduct IR activities for unitholders and share this information on their website.
7. Framework of proper motivation for employees
We implement thorough compliance through an appropriate internal management structure that encourages our officers and employees to maintain the highest standards of ethics and comply with laws and regulations. By conducting regular training for our officers and employees to obtain adequate knowledge on compliance and also placing compliance matters as the first listed item on personnel assessment sheets, we instill proper motivation in our officers and employees with regard to compliance with laws and regulations.
Initiatives
Through compliance training, we are working to improve the necessary knowledge of our asset management companies. In addition, as an asset management company, we focus on developing our human resources by providing financial support to employees for training expenses, etc., related to acquiring and maintaining various certifications.
→Please refer to the human resources retention and development strategies.
Compliance training status
| Year | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| The number of Compliance training held | 12 | 12 | 11 | 12 |