Question

What are the instruments of regulation?

Answer 1

Subsidiary Legislation- Subsidiary regulations shall be provided in compliance with the applicable Laws. They usually spell out the provisions of a law and define in more detail the conditions to which financial institutions or other designated individuals (e.g., a representative of a financial adviser) must adhere. Subsidiary legislation has the force of law and may determine that a criminal offense is a contravention. They are also published in the Government Gazette.

Directives- Primarily, guidelines place legally binding conditions on an individual financial institution or a specific person.

Guidelines- Guidelines lay down principles or "best practice guidelines" which govern the conduct of specific institutions or individuals. Contravening guidelines are not criminal offences and do not warrant civil penalties, but the spirit of these guidelines should be followed by designated entities or individuals.

Codes- Codes are a set of rules which govern the conduct of specific activities. Codes are non-statutory, and have no legal force. A violation of a Code can therefore trigger other non-statutory penalties such as private reprimand or public censorship. Failure to abide by a code in itself does not constitute a criminal offence, but may have other implications.