Business Conduct and Client Relations
The most heavily weighted topic. The SFC Code of Conduct's nine General Principles, and the know-your-client and suitability obligations that flow from them, are the backbone of day-to-day compliance.
The Code of Conduct
The Code sets nine General Principles: honesty and fairness (GP1), diligence (GP2), capabilities (GP3), information about clients (GP4), information for clients (GP5), conflicts of interest (GP6), compliance (GP7), client assets (GP8) and responsibility of senior management (GP9). In practice, GP4 is delivered through the know-your-client duty (para 5.1) and GP1/GP5 through the suitability obligation (para 5.2), which requires recommendations to be reasonably suitable for the client. Client agreements must be clear and fair and cannot override these duties.