A new Code of Conduct for Malaysia Wholesale Money and Foreign Exchange (forex) markets, which will set out clear principles and standards to be observed by market participants, is expected to be launched in January 2017, said Bank Negara Malaysia (BNM).
Its Governor, Muhammad Ibrahim, said BNM had launched a consultation paper on the new code today.
“The consultation period will be about one month. We will then look into it, finalise it and issue it as a final version by early January next year,” he told reporters after witnessing the signing of a collaboration agreement between the Asian Institute of Chartered Bankers (AICB) and Financial Markets Association of Malaysia (FMAM) here, today.
Earlier in his special address, Muhammad said the active engagement between FMAM and AICB had led to the official collaboration which sought to strengthen the framework for enforcement of the code of conduct of their members.
The governor said BNM is now inviting comments from market participants and the general public, including corporations that may deal in the wholesale financial markets.
“This code of conduct will be adopted by the industry and will scope all activities within the foreign exchange and money markets, as well as, activities of regulated entities in other markets.
“Hence, the code of conduct will also be applicable to fund management companies, corporations and providers of electronic trading or broking systems that deal in the wholesale financial markets, as well as, interbank players in the bond markets,” he said.
Muhammad said the code of conduct would set out clear principles and standards to be observed by market participants and lay out the role of industry associations in preserving market order and stability.
He said it would also include enhanced requirements for institutions to have robust systems and internal controls to safeguard professionalism and integrity of the financial markets.
“With the code conduct, we expect the financial market community to develop and maintain a corporate culture that emphasise the importance of professionalism and ethical standards, compliance with the laws and regulations and consumer protection,” he added.
Meanwhile, Chairman of AICB and Asian Banking School (ABS), Azman Hashim, said the mechanics of the collaboration agreement was that AICB would admit the Ordinary Members of FMAM as Associate Members of AICB with the appropriate continuing professional development requirements in place to support the FMAM Member’s professional development journey.
“At the same time, ABS will provide training through workshops for the Pasaran Kewangan Malaysia Certificate and Investor Protection Professional Certification examinations for FMAM,” he added.