BC-B.1.1

Islamic bank licensees are required to develop a Code of Business Conduct that contractually obliges the bank's employees and representatives to carry out their duties and responsibilities in a fair and honest manner. Banks must also refer to Module HC 'High- level Controls' for requirements on code of business conduct.

BC-B.1.2

An Islamic bank licensee must aspire to the highest standards of truthfulness, honesty and fairness in all its statements and dealings, and must treat its customers fairly.

BC-B.1.3

The fundamental requirement with regard to truthfulness, honesty and fairness is that an Islamic bank licensee must not, either deliberately or through negligence, issue information that is potentially misleading to stakeholders or the market, nor must it manipulate prices by using any of the means whereby this may be done. Such means include, but not limited to, making a false market, issuing misleading price-sensitive information and price-fixing in conjunction with other market players. Where applicable, banks must also refer to Volume 6 (Capital Markets)—Prohibition of Market Abuse and Manipulation Module 'MAM'.

BC-B.1.4

An Islamic bank licensee must not, either deliberately or through negligence, issue information that is misleading to stakeholders or the market regarding the Shari'a compliance of its products or services, or of Sukuk issuances with which it is involved.

BC-B.1.5

An Islamic bank licensee must not mislead clients or the market through the withholding of material information.

BC-B.1.6

An Islamic bank licensee must have appropriate procedures whereby whistle-blowers are treated honestly and fairly, with no cover-ups or victimisation. See Section BC-B.1.7. With regard to fairness, an Islamic bank licensee must follow best practice in establishing procedures for handling complaints from clients. See Chapter BC-10.

BC-B.1.7

An Islamic bank licensee should establish a procedure that can be made clear to the public whereby their employees and representatives are contractually obliged to carry out their duties and responsibilities in accordance with a code of business conduct that requires fairness and honesty. To embody this self-binding commitment, an Islamic bank licensee should publish a client's charter that sets out the relevant parts of its code of business conduct as a written promise to guarantee the delivery of honest and fair service to its clients as demanded by Shari'a. An Islamic bank licensee should refer to Paragraphs BC-B.1.8 and BC-B.1.9. This charter will include such matters as procedures for dealing fairly, honestly and efficiently with complaints from customers or investors, and with whistle-blowers and any problems to which they draw attention. Refer to Paragraph HC-3.3.3.

BC-B.1.8

A client's charter is a written commitment made by an Islamic bank licensee in terms of the deliverance of its outputs or services to its customers inclusive of stakeholders. It is an assurance by the Islamic bank licensee that outputs or services rendered will comply with the standards declared as quality standards. Generally, quality standards of outputs or services are standards that will fulfil clients' needs and tastes.

BC-B.1.9

The assurances contained in the charter will ensure the generation of more disciplined, prepared and responsible Islamic bank licensee. Various benefits will be obtained from the establishment of the client's charter.

Benefits to the Public:

Benefits to the Islamic bank licensee:

BC-B.1.10

The Islamic bank licensee must establish a policy with regard to 'whistle-blowing' so as to encourage all employees to report promptly to an appropriate level of management any breach or suspected breach of business conduct principles. The policy must, among other things, clarify:

BC-B.1.11

Islamic bank licensees must apply the requirements of Module PD pertaining to enhancing corporate governance and financial transparency in order to protect customers and facilitate market discipline through better practice in public disclosure.