The MFSA is consulting interested parties for the second time about its plans to publish a Conduct of Business Rulebook in which it sets out the duties of regulated persons vis-à-vis their conduct towards clients.

This follows the regulator's previous consultative exercise which it undertook on 6th May 2015, which tackled the topics of client disclosures and reporting, product governance and conflicts of interest. This first phase of consultation ended last July.

As indicated in that first phase, the Conduct of Business Rulebook ought to apply to people and firms licensed under the Investment Services Act (excluding custodians) and to persons carrying on insurance activities in terms of the Insurance Business Act or the Insurance Intermediaries Act (insurance undertakings and insurance intermediaries), alongside individuals who work with or advise such entities, as well as firms licensed as credit institutions under the Banking Act which sell or give advice to clients in relation to structured deposits.

The purpose of this second phase of consultation is to obtain the industry’s views on two chapters in the proposed rulebook: (a) Selling Process and Practices (including Contractual Agreement with Clients) and (b) Execution of Clients’ Orders.

These draft rules are drawn mainly from the relevant European Union directives, along any relevant 'level 2' measures. The deadline for submission of feedback is 31 May.