Upon completion of this course, participants will be able to:

• Define and enforce core principles of **Market Conduct** regulation, including fair treatment of customers and product suitability.
• Develop and implement a **risk-based supervision framework** for market conduct, prioritizing high-risk products (e.g., consumer loans, insurance) and institutions.
• Utilize **data analysis and behavioral insights** to proactively identify potential unfair practices, mis-selling, and misleading advertising.
• Establish clear regulatory requirements for **product design, disclosure, and transparency** in consumer financial services.
• Implement an effective **complaints handling and redress mechanism** to ensure swift and fair resolution of customer issues.
• Understand the role of culture, incentives, and governance in driving ethical behavior and preventing systemic market conduct failures.
• Apply corrective action and **enforcement tools** specific to market conduct breaches (e.g., remediation, fines).
• Analyze the intersection between ethical finance, consumer protection, and financial stability.

• Market Conduct Supervisors and Consumer Protection Regulators.
• Compliance Officers and Chief Ethics Officers at Financial Institutions.
• Internal Auditors focused on Sales Practices and Product Suitability.
• Regulatory Policy Developers specializing in Consumer Finance and TCF (Treating Customers Fairly).
• Legal Counsel dealing with Consumer Litigation and Market Conduct Fines.
• Financial Education and Literacy Specialists.

• Market Conduct Risk Assessment and Supervisory Simulation Exercises
• Case Studies on Mis-Selling and Consumer Protection Enforcement Actions
• Group Activities on Designing Fair Disclosure Requirements for a Complex Product
• Workshops on Utilizing Complaint Data for Proactive Risk Identification
• Expert Lectures on Behavioral Finance and Regulatory Intervention
• Individual Exercises on Evaluating Sales Incentive Structures for Conduct Risk

Unit 1: Foundations of Market Conduct Regulation

• Defining the scope and objectives of Market Conduct Supervision (MCS) and the principle of **Treating Customers Fairly (TCF)**.
• Identifying key market conduct risks: mis-selling, deceptive advertising, predatory lending, and privacy breaches.
• Review of international best practices (e.g., G20/OECD) and principles for consumer protection.
• The legal and policy basis for the supervisor's authority to intervene in market conduct matters.
• The importance of ethical finance in maintaining public trust and financial inclusion.

Unit 2: Product Design and Suitability

• Supervisory review of financial institution processes for **product design and governance**.
• Establishing criteria for **product suitability** and ensuring products meet the needs of the target market.
• Protocols for assessing the clarity, completeness, and fairness of key disclosures (e.g., fees, terms, risks).
• Monitoring the use of complex or high-risk products (e.g., derivatives, variable interest loans) for retail clients.
• The role of sales force incentive structures in promoting or preventing mis-selling.

Unit 3: Data Analytics and Behavioral Supervision

• Utilizing **data analysis** (e.g., sales data, complaint trends) to proactively identify patterns of unfair practices.
• Applying **behavioral insights and nudges** to regulatory design and consumer financial decision-making.
• Developing automated surveillance systems to monitor advertising and digital marketing for misleading claims.
• Protocols for conducting **mystery shopping** and targeted compliance checks on sales processes.
• The role of SupTech tools in enhancing the efficiency of market conduct surveillance.

Unit 4: Complaints, Redress, and Enforcement

• Establishing clear regulatory requirements for internal **complaints handling and resolution** by financial institutions.
• Designing and overseeing the effectiveness of the external **financial ombudsman** or alternative dispute resolution mechanism.
• Protocols for supervisory intervention: warning letters, consent orders, remediation requirements, and monetary penalties.
• Case studies on major market conduct failures and the effectiveness of supervisory enforcement actions.
• Ensuring institutions provide fair and comprehensive **customer redress** for validated harms.

Unit 5: Culture, Governance, and Ethical Frameworks

• Assessing the **organizational culture** and its impact on market conduct risk.
• The role of the Board and senior management in setting the tone for ethical behavior.
• Integrating ethical considerations into the institution's risk appetite and governance framework.
• Protocols for auditing sales practices, compliance training, and whistleblowing mechanisms.
• Analyzing the intersection of market conduct, data privacy, and the use of customer data.