The initiative is driven by the need to align with the Group of International Finance Centre Supervisors' (GIFCS) Standards and address the shortcomings identified in the existing guidelines. The RSOG, outlined in a recent private sector consultation document, expands on the existing Statement of Guidance issued in March 2019, which focused on providing explicit guidance to Trust and Corporate Service Providers (TCSPs) on matters such as conflict of interest, advertising, client communication, and complaint handling.

In response to the GIFCS Standards, CIMA proposes incorporating enforceable rules into the RSOG to enhance market conduct in the TCSP sector. The move aims to strengthen consumer protection, minimise market conduct risks, and bring about greater alignment with international standards. The RSOG covers various aspects of market conduct, including integrity, fair treatment of clients, handling of client money and assets, management of conflicts of interest, terms of business, complaints handling, and advertising practices.

CIMA also conducted a jurisdictional comparison with other GIFCS member jurisdictions. The findings highlighted that measures implemented in these jurisdictions were not only binding but also included essential elements of market conduct necessary for effective supervision of TCSPs, as per GIFCS Standards.

The proposed RSOG is steered from these international best practices, aiming to create a robust regulatory framework that promotes market confidence, consumer protection that aligns with the global financial services landscape.

To ensure a robust consultation process, CIMA has outlined specific requirements for private sector associations, including submitting consolidated feedback by 3 January 2024.

CIMA will consider representations solely from private sector associations. Feedback from individuals, entities, or other bodies not acting on behalf of these associations will not be accepted. Private sector associations are required to submit their representations as a consolidated document, resolving conflicting positions beforehand. CIMA retains the discretion to consider conflicting positions within or across associations when making decisions. Clear and unambiguous references to the specific sections of the measure, along with well-articulated and fact-based responses, are crucial for due consideration.

All the necessary information for the consultation, can be accessed here.

Consultation Cover Letter PSAs - Rule and SOG - Market Conduct for TCSPs and Company Managers can be found here.

PSCP - Rule and SOG - Market Conduct for TCSPs and Company Managers can be found here.

App.1 - Rule and SOG - Market Conduct for TCSPs and Company Managers can be found here.