Overview

Market conduct refers to the manner in which financial institutions design and deliver their financial products and services, and how they manage their relationships with existing and prospective financial consumers. Regulators determine financial institutions market conduct through supervision and monitoring. The market conduct supervision and monitoring of financial institutions helps regulators to identify risks and evaluate the significance of those risks for the consumer to avoid systemic risk.

The Financial Services Act 2010 is the main legislation that governs market conduct regulation in Malawi. In this regard, the Registrar of Financial Institutions issues directives to implement this legislation. The market conduct regulation ensures fair treatment of financial consumers and adequate transparency and disclosure of information about financial services and products for financial consumers’ comparability and informed decision making. This enables financial consumers to build confidence and trust in the financial markets, which in turn can lead to financial inclusion, sustainable economic growth and financial stability.