PB PB Principles of Business
PB-A PB-A Introduction
PB-A.1 PB-A.1 Purpose
The principles are a general statement of the fundamental obligations of all banks.
This module requires banks to establish adequate systems and procedures to ensure:(a) compliance to the guidance set forth in this module, and(b) that the personnel responsible for maintaining such systems and controls are adequately qualified and competent in discharging their duties.
This module provides support to all regulations provided in this Rulebook.
PB-A.2 PB-A.2 Module history
This module was first issued in July 2004 as part of the conventional principles volume. All regulations in this volume have been effective since this date. All subsequent changes are dated with the month and year at the base of the relevant page and in the Table of Contents. Chapter UG-3 of Module UG provides further details on Rulebook maintenance and control.
The most recent changes made to this module are detailed in the table below:
Summary of changes
Module Ref. Change Date Description of Changes
PB-B PB-B Non-compliance with the principles
PB-B.1 PB-B.1 Non-compliance
A breach of the principles outlined in this module may call into question whether the Board and management of a licensee with a BMA license are still fit and proper, and whether the licensee may continue to be licensed.
Breaching a principle makes a licensee liable to disciplinary sanctions. In determining whether a principle has been breached it is necessary to look to the standard of conduct required by the principle in question. The BMA will determine, after collating all the relevant information required (through its regulatory reporting authority), whether a licensee is in breach of these principles.
PB-1 PB-1 Principles
PB-1.1 PB-1.1 Integrity
All relevant persons should be straightforward and honest in their services and conduct. Integrity is not just limited to honesty but also includes fair dealing and full disclosure of all relevant information.
PB-1.2 PB-1.2 Objectivity
All relevant persons should be fair and should not allow prejudice, bias,
conflict of interestor influence to override their objectivity.
PB-1.3 PB-1.3 Competence, skill care and due diligence
All relevant persons should perform services with competence, due care and diligence and have a continuing duty to maintain professional knowledge and skill at a level required to ensure that a client or employer receives the advantage of competent professional services based on up-to-date developments in practice, legislation and techniques.
PB-1.4 PB-1.4 Confidentiality
All relevant persons should treat client information with the strictest of confidentiality unless disclosure is warranted under specific authority or there is a legal or professional duty to disclose.
PB-1.5 PB-1.5 Management and control
The Board and management must take reasonable care to organise and control the affairs of the licensee responsibly and effectively with adequate risk management systems.
PB-1.6 PB-1.6 Market conduct
All relevant persons should observe proper standards of market conduct.
PB-1.7 PB-1.7 Communications with client
All relevant persons must pay due regard to the information needs of their clients and communicate information to them in a manner which is clear, fair and not misleading.
PB-1.8 PB-1.8 Relationship of trust
All relevant persons must take reasonable care to ensure the suitability of their advice and discretionary decisions for any customer who is entitled to rely upon their judgment.