KUALA LUMPUR: Bank Negara Malaysia (BNM) will be announcing a new code of conduct for wholesale money and foreign exchange (forex) markets by next January, which will set out clear principles and standards to be observed by market participants.
The code will also lay out the role of industry associations in preserving market order and stability, said BNM governor Datuk Muhammad Ibrahim.
The governor said this after the central bank launched a consultation paper on the new code yesterday.
“The consultation will be 30 days, after that we will look at it and finalise it ... we hope [it will be ready] by early January,” Muhammad told reporters. He was speaking after witnessing the collaboration agreement signing among the Asian Institute of Chartered Bankers (AICB), the ACI-Financial Markets Association of Malaysia (FMAM) and the Asian Banking School (ABS) yesterday.
“We invite comments from the public, including corporations that may deal in the wholesale financial markets,” he said in a speech during the event.
He said the code of conduct will be adopted by the industry and will scope all activities within the forex and money markets as well as activities of regulated entities in other markets.
“Hence, the code of conduct will 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 added.
Under the code of conduct, the financial market community is also expected to develop and maintain a corporate culture that emphasises the importance of professionalism and ethical standards, compliance with laws and regulations, and consumer protection, he said.
“All of these will be supported by storing and effective oversight by senior management. Explicit responsibilities will be placed on the senior management to ‘set the right tone from the top’ in shaping the core values and culture of the institution,” he said.
Meanwhile, AICB and ABS chairman Tan Sri Azman Hashim said the agreement inked yesterday would result in AICB admitting ordinary members of FMAM as associate members of AICB, with the appropriate continuing professional development requirement in place, to support FMAM members’ professional development journey.
ABS will be the sole provider in delivering the workshops for the Pasaran Kewangan Malaysia Certificate and Investor Protection Professional Certification examinations for FMAM.