The regulation that prescribes procedures for dealing with consumers is which type of regulation?

• A. Structural.
• B. Systemic.
• C. Prudential.
• D. Conduct of Business.

Answer: (D)

The regulation described targets how a firm interacts with clients and manages customer-facing processes. That is conduct of business regulation, which covers procedures for dealing with consumers, such as disclosure, suitability, fair treatment, handling complaints, and managing conflicts of interest. The other types describe different aims: structural regulation deals with the firm’s internal organization and governance; systemic regulation focuses on risks to the financial system as a whole; prudential regulation covers the financial health of the institution (capital, liquidity, risk management). So the best answer is conduct of business.