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Code of conduct.
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37.—(1) Subject to subsection (2) of this section, a supervisory authority shall draw up and issue a code of conduct for investment business firms which shall include provisions which seek to ensure that an investment business 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 including commissions 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 supervisory authority may impose conditions or requirements on an investment business firm or any class of investment business firm in respect of compliance with the provisions of such a code of conduct or any other code of conduct or rules of like effect.
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(2) A code of conduct drawn up under subsection (1) of this section shall not apply to any class of certified person specified by the Bank in respect of which the Bank is satisfied that there are sufficient provisions in the rules of an approved professional body or elsewhere governing the conduct of such certified persons in respect of matters referred to in paragraphs (a) to (g) of that subsection or such other matters as the Bank deems necessary.
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(3) Codes of conduct or rules of conduct referred to in subsection (1) or (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 and the provisions of Council Directive 93/22/EEC of 10 May, 1993(1)
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(4) Codes of conduct or rules of conduct (referred to in subsection (1) or (2) of this section) may include criteria for distinguishing between different categories of investment business firms or of investor for the purposes of this section.
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(5) A code of conduct drawn up by a supervisory authority under subsection (1) of this section may be revised from time to time by the supervisory authority.
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(1) O.J. No. L.141 11/6/93. |
