On 30 June 2015 the MFSA organised an industry update session relating to the proposed Conduct of Business Rulebook as issued for consultation to the industry on 6 May 2015. The event was attended by over 100 delegates.
Six MFSA officials together with Dr Anton Felice, a consultant to the MFSA, delivered presentations during this event. The panel of speakers was chaired by Dr Michelle Mizzi Buontempo, Director of the Conduct Supervisory Unit. In her introductory speech Ms Marianne Scicluna, Director General of the MFSA, provided the audience with a brief explanation as to the rationale leading up to the drawing up of the proposed Rulebook as well as the purpose of this industry update.
Dr Anton Felice delivered a presentation entitled 'Conduct of Business – Process so Far'. In his presentation, Dr Felice provided the attendees with an overview of the processes undertaken by the MFSA and the events leading up to the introduction of a Rulebook focused particularly on Conduct of Business, including the previous consultation undertaken by the MFSA on 27 January 2014 relating to the "Proposed Conduct of Business Rules for the enhanced protection of customers in investment services".
Dr Michelle Mizzi Buontempo provided the audience with an overview of the new approach being adopted with respect to Conduct Supervision. Dr Mizzi Buontempo introduced the newly set up Conduct Supervisory Unit and explained the regulatory approach which the Unit intends to adopt, emphasizing that the ultimate aim is to bring about a culture change within the financial services industry whereby the interests of the client are placed at the heart of the industry's business. Dr Mizzi Buontempo also explained the setup of the proposed Conduct of Business Rulebook as well as highlighting the sources from which the proposed rules are derived. She also provided an outline of the chapters being put forward to the industry in this first phase of the consultation process, including certain policy approaches which are being proposed by the MFSA.
Other MFSA officials delivered presentations focusing on the individual chapters which are the subject of this first phase of consultation. Ms Romina Bonnici, Deputy Director of the Authorisation Unit, explored the first two themes of the chapter relating to Disclosures, namely Medium of Disclosure and the relevant rules on disclosures with respect to Marketing and Advertising. Ms Bonnici's presentation was followed by Ms Erika Farrugia from the Insurance and Pensions Supervision Unit, who explained the salient rules on disclosures relating to Information on Regulated Persons and disclosures about the Services and Products provided by Regulated Persons.
Dr Sarah Pulis, Senior Manager within the Conduct Supervisory Unit, delivered a presentation which highlighted the most significant new rules concerning Product Oversight and Governance. Dr Petra Camilleri from the Conduct Supervisory Unit and Mr Christopher Micallef from the Securities and Markets Supervision Unit, delivered a joint presentation relating to Conflicts of Interest, which focused on the General Principles relating to Conflict of Interest, rules relating to Remuneration and Inducements as well as the rules relating to Disclosures on Conflicts of Interest.
A Q&A session followed the presentations, following which the Chairman of the MFSA brought this industry update session to an end with his concluding remarks.
In the meantime, following this first phase of this consultation procedure, the MFSA has received feedback from the industry which is currently being analysed and considered by the Authority. It is envisaged that the second phase of this consultation process will take place in September 2015, when the MFSA intends to issue the next set of chapters of the Proposed Conduct of Business Rulebook for consultation to the industry.
MFSA Industry Update On The Proposed Conduct Of Business Rulebook
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