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Codes of conduct.
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38.—(1) Subject to subsection (2) of this section, the Bank shall draw up and issue a code of conduct for approved stock exchanges or member firms or both which shall include provisions which seek to ensure that a member firm—
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(a) acts honestly and fairly in conducting its business activities in the best interests of its clients and the integrity of the market,
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(b) acts with due skill, care and diligence, in the best interests of its clients and the integrity of the market,
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(c) has and employs effectively the resources and procedures that are necessary for the proper performance of its business activities,
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(d) seeks from its clients information regarding their financial situations, investment experience and objectives as regards the services requested,
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(e) makes adequate disclosure of relevant material information in its dealings with its clients,
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(f) makes a reasonable effort to avoid conflicts of interests and, when they cannot be avoided, ensures that its clients are fairly treated, and
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(g) complies with all regulatory requirements applicable to the conduct of its business activities so as to promote the best interests of its clients and the integrity of the market,
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and the Bank may impose conditions or requirements on a member firm in respect of compliance with the provisions of such a code of conduct.
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(2) Subsection (1) of this section shall not apply where an approved stock exchange has drawn up and maintains in force rules of conduct in respect of matters referred to in paragraphs (a) to (g) of that subsection.
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(3) The code of conduct or rules of conduct or both, referred to in subsections (1) and (2) of this section, may be applied in such a way or to such an extent as to take account of the status or experience of the person for whom the services are provided.
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(4) The code of conduct or rules of conduct or both, referred to in subsections (1) and (2) of this section, may include criteria for distinguishing between different categories of investor for the purposes of this section.
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