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ACI Model Code / Events
ACI Model Code

Fact sheet on the adaptation of the ACI model code in the local market ::

Press briefing on 03rd October 2006 -at the Jaic Hilton Union Ballroom at 5.30 p.m.
  • The ACI (Association Cambiste Internationale) is a Paris based organization, which is considered as the apex body for Treasury related activity worldwide
  • Many national associations are members of ACI, while others choose to be part members, like the Sri Lanka Forex Association.
  • The financial markets of Sri Lanka did not have a formal model code. Any issues, if any, were settled amicably between the parties.
  • However, with market developments taking place, there was a need for the adoption of a formal model code. The main necessity of such a code is to encourage a high standard of conduct, which would eventually lead to efficient market practices.
  • Central Bank together with the Association of Primary Dealers, Money Brokers Association, and the Sri Lanka Forex Association looked into the feasibility of formalizing such a code of behaviour among participants.
  • This committee which was headed by Mr. Y M W B Weerasekara - the Assistant Governor of the Central Bank, consisted of key officers from the Central Bank, the Associations mentioned above and key retired personnel from the financial markets of Colombo.
  • It was the opinion of this Committee that the ACI Model code can be used in its entirety, subject to certain conditions that are unique to the Colombo market.
  • This decision was conveyed by the Governor to all CEO’s of Commercial Banks to be implemented with effect from 01 st September 2006.
  • The model code is expected to be a self governing document. However, it specifies a dispute resolution mechanism, should the need arise.
  • We consider this an important step forward in the development of our market