When an investment intermediary is providing advice to a client on shares listed on a Stock Exchange, it must comply with which Regulation?

• A. MiFID Regulations.
• B. Stock Exchange Code of Conduct on investment advice.
• C. Code of Conduct for investment intermediaries.
• D. Consumer Protection Code.

Answer: (B)

When dealing with advice on shares that are listed on a Stock Exchange, the rules focus on how investment advice is conducted for listed securities. The Stock Exchange Code of Conduct on investment advice directly governs this activity, setting standards for what must be disclosed, how suitability is assessed, how conflicts of interest are managed, and how the advice is documented. This code is tailored to the context of listed instruments and the conduct expected within the exchange environment, ensuring that recommendations are appropriate to the client’s objectives and risk tolerance and that communications are fair and not misleading.

While MiFID provides a broad regulatory framework for investment services across jurisdictions, the question points to the specific regime applicable to advice on exchange-listed shares. The Consumer Protection Code covers general consumer protections rather than the specialized requirements of stock-market advice, and a generic Code of Conduct for investment intermediaries lacks the precise focus on listed securities and exchange-related obligations. Hence, the Stock Exchange Code of Conduct on investment advice is the appropriate regulation to comply with in this scenario.