Section 42B
Application
of Development Financial Institutions Act 2002
Sections 42C and 42D shall apply without prejudice to the provisions of the Capital Markets and Services Act 2007 [Act 671] in so far as such provisions relate to any of the regulated activities carried on by a prescribed institution under that Act.
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(2)
The Bank shall enter into an arrangement in writing with the Securities Commission to coordinate on the regulation of business conduct relating to capital market products or capital market services as defined in subsection 2(1) of the Capital Markets and
Services Act 2007, developed, offered or marketed by a prescribed institution.
Standards on business conduct
*42C. (1) The Bank may specify standards on business conduct for the purpose of ensuring that a prescribed institution is fair, responsible and professional when dealing with financial consumers.
(2)
Without prejudice to the generality of subsection (1), standards specified under that subsection may include standards relating to—
(a)
transparency and disclosure requirements including the provision of information that is accurate, clear, timely and not misleading to financial consumers;
(b)
fairness of terms in a financial consumer contract for financial services or products;
(c)
promotion of financial services or products;
(d)
provision of recommendations or advice including assessments of suitability and affordability of financial services or products offered to financial consumers; and
(e)
complaints and dispute resolution mechanisms.
(3)
The Bank may specify standards for the purposes of the definition of “financial consumer” under section 42A.
(4)
Where the Bank specifies a standard on business conduct under subsection (1) which relates specifically to capital market products or
*NOTE—General savings–see subsections 111(2) and (3) of the Development Financial Institutions
(Amendment) Act 2015 [Act A1502] which comes into operation on 31 January 2016.
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capital market services as defined in subsection 2(1) of the Capital
Markets and Services Act 2007, such standard shall be specified jointly with the Securities Commission.