Market Conduct refers to the manner in which a financial institution designs its products and services and manages its relationship with clients and the public, including via the use of intermediaries (sales representatives or agents). In recent years, financial institutions have been encouraged to re-examine and strengthen their market conduct policies in order to protect the interest of consumers.
As part of its mandate to preserve financial stability, the Central Bank must assess the significant risks to institutions fulfilling their market conduct outcomes, prioritize actions that prevent risk from escalating, and consider early corrective measures to improve the customer experience. The objective of the Central Bank is thus to balance the interests and rights of the financial consumer with the need for financial institutions to innovate and develop.