Code of Practice on Competition Practices

• General principles
• Dealings with customers
• Marketing and Advertising

General principles

IBF-member banks will: (a) observe the principles and spirit of Conventions in relation to the provision of financial services which are subscribed to by the appropriate regulatory and supervisory authorities; (b) act fairly and properly and maintain high standards of integrity in dealings with customers and with other financial institutions; (c) adhere to a high level of professional practice.

Dealings with customers

2.1 Fairness, Truthfulness and Transparency (a) In informing customers of the terms, conditions and mutual rights and obligations which shall govern customer services, member banks will present the relevant information in a fair and truthful manner. (b) Invitations to customers to apply for facilities or other services will not contain conditions which indicate that existing or future facilities and services are contingent on the customer availing of the facility or service being offered.

2.2 Confidentiality An IBF-member bank will not divulge proprietary information (as defined below) to third parties other than in the following circumstances: (i) where the party concerned has given permission to do so; (ii) where a bank is ly compelled to do so; (iii) where there is a duty to the public to disclose; and (iv) where it is necessary for the bank to present its case - e.g. in court or in other circumstances of a related nature. Proprietary information is information relating to a customer's affairs obtained by a financial institution in the ordinary course of its business with that customer.

2.3 Processing of Payment Instruments All valid payment instruments drawing on, or to be applied for credit of a customer's account, will be processed on receipt without prior recourse to the customer for the purpose of offering alternative services.

Marketing and Advertising

(a) Marketing and advertising practices will conform to high ethical and professional standards. (b) All statements made in advertising and marketing material will be honest and truthful and not such as to mislead or confuse. No information will be omitted which would be essential to the formation of a considered view by the recipient. Member banks may use proprietary information (as defined above) relating to their customers for the marketing of their existing or new products and services to such customers. Without the prior consent of the customer concerned, such personal information regarding customers, including their names and addresses, will not be provided by a bank to any subsidiary or affiliate company which is not authorised to carry on the type of financial services business as that bank, for the latter's marketing purposes.