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International Conduct of Business Principles
Introduction
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1 - In January 1990, the Technical Committee of IOSCO decided on the creation of a working group on Principles of ethical conduct. By ethical conduct, the Committee had in mind rules applying to financial intermediaries designed to promote the primacy of the interests of the client and the integrity of the market. The working group was asked to elaborate a set of principles to apply on an international level and to be implemented in each IOSCO member country in accordance with its own legislation, organisation and culture. The Principles were to apply to financial intermediaries, and deal with: - the need to have available sufficient capabilities for the proper performance of their activities; - the need for customer information; - the need to treat clients with fairness and diligence; - the need to prevent and, should they arise, to treat in a fair manner any conflicts of interest; - the need to comply with market regulation and to cooperate with the market authorities; - the need to establish staff dealing rules and procedures and to enforce them. 2 - The conclusions of the working group were to be available for the 15th Annual Conference of IOSCO taking place in Santiago in November 1990. The Technical Committee mandated Pierre FLEVRIOT of the Commission des Operations de Bourse to act as the Chairman of the working group. The members of the working group were HongKong, Italy, Japan, Quebec, Sweden, Switzerland, United Kingdom, The Federal Republic of Germany and the SEC and CFTC for the United States, with Australia as a correspondent member. 3 - This report discusses in the first part the elaboration of the international conduct of business principles. The second part of the report contains the principles which have been agreed to by the working group.
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International Conduct of Business Principles
