Overview
This Act sets the overarching expectations for how licensees treat clients, design and distribute products, present information and handle conflicts, across both financial and gaming activities. Detailed, practical requirements are supported by the Client Protection & Disclosure Code and other instruments issued under this Act.
Purpose of the Act
The Market Conduct & Consumer Protection Act is intended to ensure that clients are treated fairly throughout the life of a relationship, from marketing and onboarding through to complaints and exit.
- Defines core conduct and consumer protection principles for all licensees.
- Sets expectations for information, disclosure and communications.
- Addresses conflicts of interest, incentives and product governance.
- Connects market conduct expectations to supervision, enforcement and redress.
(1) This Act may be cited as the Market Conduct & Consumer Protection Act, 2025.
(2) This Act shall come into operation on such date as may be appointed by Order of the Minister responsible for finance and financial services (“the Minister”) and published in the Official Gazette.
In this Act, unless the context otherwise requires—
- “Authority” means the Neves Licensing Authority established under the Neves Licensing Authority Establishment Act, 2025;
- “Board” means the Board of the Neves Licensing Authority;
- “client” means any person to whom a licensee provides, has provided or has offered to provide a product or service, including potential clients approached through marketing or distribution channels;
- “competent body” means the Authority, the Neves Financial Services Authority (NFSA), the Neves Gaming Authority (NGA), or any other body designated under sovereign Act;
- “licensee” has the meaning given in the Licensing & Authorisation Act, 2025;
- “market conduct” means behaviours and decisions of licensees and their agents that affect clients, markets and counterparties, including sales, advice, execution, complaints and post-trade activity;
- “Product” includes services, platforms, contracts and any other offering made available by a licensee to clients or counterparties;
- “Rules” means Rules, Codes and other instruments issued by the Authority or competent bodies under this Act and approved by the Minister where required;
- “vulnerable client” means a client who, due to personal circumstances, experience, financial situation or other factors, may be at greater risk of poor outcomes.
(1) This Act shall be read together with and in addition to the Neves Licensing Authority Establishment Act, 2025, the AML / CFT & Financial Crime Prevention Act, 2025, the Licensing & Authorisation Act, 2025, the NFSA Act, the NGA Act and the Complaints, Investigations & Enforcement / Redress Act, 2025.
(2) Where there is any inconsistency between this Act and another enactment which refers to it, this Act shall prevail to the extent of the inconsistency, unless expressly provided otherwise.
(1) A licensee shall at all times treat clients fairly, honestly and with due skill, care and diligence.
(2) Fair treatment shall be assessed having regard to the entire client journey, including product design, marketing, onboarding, ongoing service and exit.
(1) In conducting its business, a licensee shall give due regard to the interests of its clients and the outcomes they experience.
(2) A licensee shall manage its business so that reasonably foreseeable harm to clients is avoided, mitigated or promptly remedied.
(1) A licensee shall take reasonable steps to identify and consider the needs of vulnerable clients.
(2) Where appropriate, additional care, explanation or safeguards shall be applied to support vulnerable clients and to avoid unfair treatment.
(1) All information, marketing materials, product descriptions and communications addressed to clients shall be clear, fair and not misleading.
(2) A licensee shall avoid presenting benefits, features or potential returns in a way that obscures risks, limitations or relevant costs.
(1) Before entering into a product or service, a licensee shall provide clients with key information in a durable medium, including at a minimum—
- the nature of the product or service and how it works;
- material risks and limitations, including leverage and loss potential where applicable;
- fees, charges and other costs reasonably foreseeable at the time; and
- any material conditions, restrictions or lock-in periods.
(2) Further detail on the structure and presentation of such information may be set out in the Client Protection & Disclosure Code made under this Act.
(1) A licensee shall inform clients in good time of material changes to products, terms, fees or service arrangements which may affect their decisions.
(2) Communications relating to changes shall be written in language and format which clients can reasonably understand.
(1) Where a licensee provides advice or makes a personal recommendation, it shall take reasonable steps to ensure that the product or service is suitable for the client, taking into account the client’s objectives, experience, financial situation and risk appetite.
(2) Where a licensee offers execution-only or non-advised services for higher-risk products, it shall assess whether the product is appropriate for the client’s knowledge and experience, or otherwise give a clear warning.
(1) A licensee shall design and operate incentive arrangements in a way that does not encourage mis-selling, excessive risk-taking or unfair treatment of clients.
(2) Sales staff and agents shall be trained and supervised to ensure that products are sold in line with this Act and any applicable Codes.
(1) Where a licensee uses third parties, including affiliates, introducers or marketing partners, it remains responsible for the way its products and services are presented and sold.
(2) A licensee shall take reasonable steps to ensure that such third parties comply with this Act and any applicable Codes issued under it.
(1) A licensee shall identify, record and manage conflicts of interest which arise between—
- the licensee and its clients; or
- one client and another client.
(2) Where conflicts cannot be adequately managed, a licensee shall decline to act or shall proceed only with the informed consent of the client, where appropriate.
(1) Where a licensee holds client money or assets, it shall do so in accordance with applicable enactments and any Rules or Codes made under this Act or other sovereign Acts overseen by the Authority.
(2) A licensee shall keep adequate records and shall implement controls designed to safeguard client money and assets from misuse or loss.
(1) A licensee that designs or significantly amends products shall identify the target market for each product and consider whether the product is compatible with the needs, characteristics and objectives of that target market.
(2) A licensee shall take reasonable steps to ensure that distribution strategies are consistent with the identified target market.
(1) A licensee shall periodically review its products, client outcomes and complaint trends to identify any emerging harm or misalignment with the intended target market.
(2) Where significant issues are identified, a licensee shall consider adjustments to product features, pricing, communications or distribution, and where appropriate may restrict or withdraw the product.
(1) A licensee shall monitor its own compliance with this Act and with any Codes issued under it, including through internal audit or other assurance functions where appropriate.
(2) A licensee shall promptly report to the Authority or relevant competent body any material breach or client outcome issue that may indicate significant harm or weakness.
(1) The Authority and competent bodies shall, in their supervisory work, place appropriate emphasis on market conduct and consumer outcomes, alongside prudential and other considerations.
(2) Supervisory findings may inform the use of measures and sanctions under the Complaints, Investigations & Enforcement / Redress Act, 2025 and the Licensing & Authorisation Act, 2025.
(1) Complaints data and redress outcomes arising under the Complaints, Investigations & Enforcement / Redress Act, 2025 shall be taken into account when assessing a licensee’s market conduct and culture.
(2) Repeated or systemic complaints may lead to enhanced supervisory attention, product review or enforcement measures.
(1) The Authority or a competent body may, with the approval of the Minister where required, issue Codes and other instruments under this Act, including the Client Protection & Disclosure Code, to provide practical detail and guidance on market conduct and consumer protection expectations.
(2) Codes issued under this Act may be taken into account when assessing compliance with this Act, fitness and propriety, and the adequacy of governance, systems and controls.
(1) Licensees and other persons to whom this Act applies shall, within the transitional period specified in an Order or in Codes under this Act, bring their business practices, communications and product governance arrangements into line with this Act.
(2) The Authority may prioritise higher-risk sectors or activities for earlier implementation during the transitional period.
(1) The Minister may, on the recommendation of the Authority, make Rules or Orders for the better carrying out of the purposes of this Act, including but not limited to—
- setting minimum standards for disclosures and client communications;
- defining expectations for suitability, appropriateness and product governance;
- specifying additional protections for vulnerable clients; and
- aligning Codes and other instruments issued under this Act with other sovereign Acts overseen by the Authority.
Nothing in this Act shall limit any powers or obligations arising under the Neves Licensing Authority Establishment Act, 2025, the AML / CFT & Financial Crime Prevention Act, 2025, the NFSA Act, the NGA Act, the Licensing & Authorisation Act, 2025, the Complaints, Investigations & Enforcement / Redress Act, 2025 or any other sovereign Act overseen by the Neves Licensing Authority.
This Act shall bind the State.
Neves Licensing Authority
Neves Licensing Authority
