Section 26

The Authority may make regulations regulating the conduct of investment business by a regulated person.

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Without prejudice to the generality of subsection ( 1), the Authority may make regulations -

fa} promoting high standards of integrity and fair dealing in the conduct of investment business;

{b)

requiring a regulated person to act with due skill, care and diligence in providing any service which he provides or holds himself out as willing to provide;

{c)

requiring a regulated person to subordinate his own interests to those of his clients and to act fairly between his clients;

{d)

requiring a regulated person to ensure that, in anything done by him for the persons with whom he deals, due regard is had to their particular circumstances;

{e)

providing for the disclosure by a regulated person of interests in, and facts material to, transactions which are entered into by him in the course of carrying on investment business or in respect of which he gives advice in the course of carrying on such business, including information as to any commissions or other inducements received or receivable from a third party in connection with any such transaction;

{f)

providing for the disclosure by a regulated person of the capacity in which and the terms on which he enters into any such transaction;

{g)

providing for requiring a regulated person who in the course of carrying on investment business, enters or offers to enter into a transaction in respect of an investment with any person, or gives any person advice about such a transaction, to give that person such information as to the nature of the investment and the financial implications of the transaction that will enable him to make an informed decision;

{h)

ensuring that where any action is or is to be taken in conformity with arrangements for the purposes of stabilising prices that adequate arrangements exist for making known that the price of the investments in respect of which the action is or is to be taken;

{i) providing for the protection of client's money and assets for which a holder of a capital markets services licence is liable to account to another person;

{j)

making the best prov1s1on that can reasonably be made for the compensation of investors;

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(kJ reqmnng the keeping of proper records and providing for their inspection in appropriate cases; or

(IJ providing for the conduct of business and the other provisions made for the purposes of conduct of business must take proper account of the fact that provisions that are appropriate for regulating the conduct of business in relation to some classes of investors may not (by reason of their knowledge, experience or otherwise) be appropriate in relation to others.

Modification of conduct of investment business regulations.