SMALL BUSINESS ACT

SMALL BUSINESS

CHAPTER 512

SMALL BUSINESS ACT

To enhance the operational environment for medium and small

enterprises in order to facilitate their setting up and growth. It seeks to

identify those areas where the existing regulatory environment can be

improved in order to provide solutions that will benefit enterprises and

make it easier for them to operate. It further sets up the Enterprise

Consultative Council and the College of Regulators, two advisory bodies,

which aim to provide a forum for consultation and social dialogue, advise

Government on challenges faced by the business enterprise, address

grievances which emanate from the business enterprise and come up with

remedial action.

1st October, 2011;

1st January, 2015 *

21st April, 2017 †

ACT XI of 2011 , as amended by Acts XVIII of 2015 , XXV of 2015 ,

XXVII of 2016 . XII of 2017 and XXII of 2021.

PART I

Definitions and Declaration of Principles

The short title of this Act is the Small Business Act.

(1)

In this Act, unless the context otherwise requires

"business support measures" means any initiatives such as

grants, rebates, exemptions and other forms of facilitation meant to

make it easier for businesses to start up and operate;

"central entity" means an entity identified by article 5;

"College" means the College of Regulators established by article

13;

"consultation" means the seeking and giving of advice,

information or opinion;

"Council" means the Enterprise Consultative Council established

by article 10(1);

"customer satisfaction survey" is an exercise meant to analyse

customer satisfaction and establish customer needs and

expectations in order to identify any shortcomings or possible

improvements in the service delivery;

"explanatory notes" means a document prepared by the

department or other entity submitting an instrument to Parliament

or the House of Representatives that explains in plain terms what

the instrument seeks to achieve and is meant to address, it is

*See article 1(2) of the Act, as originally enacted, and Legal Notice 410 of 2011,

which brought into force the provisions of the Act, except articles 3(2)(a) and (b), 4,

13, 15 and 16 thereof; and Legal Notice 1 of 2015 which brought into force article

3(2)(a) and (b) and article 4.

† Articles 13, 15 and 16 were brought into force as from 21st April, 2017 by Legal

Notice 114 of 2017.

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published and attached with the Act or Legal Notice but does not

have legal standing;

"government agency" means a body listed in the Fourth Schedule

to the Public Administration Act;

"government department" means any entity in the public sector

that is listed in the Second Schedule to the Public Administration

Act;

" g o v e r n m e n t e n t i t y " m e a n s a n o rg a n i z a t i o n , n o t b e i n g a

government department, a government agency or a commercial

partnership, in which government has a controlling interest,

whether or not such an organization is established by law;

"instrument" means both primary and subsidiary legislation,

including a bill which has not yet become law, and the transposition

of a European Union Directive into Maltese law;

"the Malta Enterprise" means the entity set up in terms of the

Malta Enterprise Act;

"the Minister" means the Minister responsible for the economy;

"the National Statistics Office" means the Office set up under the

Malta Statistics Authority Act;

"public sector entities offering services to business" means the

Authority responsible for Planning, the Authority responsible for the

Environment and Resources, Jobsplus, the Commissioner for Revenue,

the Department responsible for Commerce, the Malta Enterprise, the

Regulator responsible for Energy and Water Services, the Authority

responsible for Medicines, the Authority for Competition and

Consumer Affairs, the Authority for Communications, the Customs

Department, the Authority responsible for Financial Services, the

Authority responsible for Gaming, the Registry of Companies Agency,

Business First, Authority responsible for Transport, and any other

entity as may be identified by the Minster from time to time;

"the Small Business Advisory Committee" means the body

established by article 10(6);

"SME" means small and medium enterprises as defined in

Commission Recommendation 2003/361/EC of 6 May 2003

concerning the definition of micro, small and medium-sized

enterprises;

"SME Test" means the impact assessment as set out in Schedule

II;

"user guidelines" means a document prepared by the department

or other entity that intends to enforce a new instrument in order to

explain to the public in plain terms what will be required to abide

by the provisions of the law, and what will be expected of it to

ensure compliance.

(2) In the interpretation and application of this Act, the

Minister shall, in such manner as he deems appropriate, give due

consideration to the provisions of the European Charter for Small

Enterprises.

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PART II

Functions of government departments and entities

which relate to business

(1) Further to the fulfilment of the powers, functions and

responsibilities attributed to a government department, government

entity or government agency under the Public Administration Act,

and under any other legislation concerning their area of

competence, a government department, government entity or

government agency shall endeavour to facilitate the carrying out of

business activities.

(2) In fulfilment of its function under sub-article (1), a

government department, government entity or government agency

(a) prior to submitting to Parliament or laying before the

House of Representatives an instrument, assess the

effect which the proposed instrument might have on

SMEs’ operating environment;

(b) within two months from the date of its publication in

the Gazette communicate the instrument, which has

passed through Parliament or been laid before the

House of Representatives, to all sectors affected by its

introduction, and shall inform the affected business

sectors of the date of the coming into force of the

instrument

Provided that no instrument, to which this sub-article

applies, may come into force before the lapse of the

two months referred to in this paragraph;

(c) draw up explanatory notes in terms of Schedule III and

ensure that they are published concurrently with, and

attached to, the instrument;

(d) compile and publish User’s Guidelines to explain the

requirements being imposed in any new instrument in

accordance with paragraph (b), in sufficient time

before the coming into force of such instrument to

facilitate compliance; and

(e) compile basic information on all pertinent rules and

regulations within its remit as well as of business

facilitation measures relevant to the setting up and

running of an enterprise, and make this information

easily available.

(1) In its function of carrying out an impact assessment in

terms of article 3(2)(a)

(a) in case of primary and subsidiary legislation, a

government department, government entity or

government agency shall fill in the Impact Assessment

Framework as set out in Schedule I, or as may be

further established under any other legislation;

(b) any instrument which is determined to have an effect

on SMEs shall be accompanied by a report on the

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outcome of a SME Test which shall be carried out by

the government department, government entity or

government agency concerned following the procedure

set out under Schedule II.

(2) The application of the SME Test under sub-article (1)(b)

shall be carried out in coordination with the central entity identified

under article 5, which entity shall solely be responsible for

overseeing the implementation of Section 6 of the Impact

Assessment Framework.

(3) The Impact Assessment Framework referred to in sub-article

(1)(a) and set out in Schedule I shall be published in the English version

only.

(1) There shall be identified by Government a central

entity which will have the necessary expertise in terms of human

resource, knowledge or qualification in the application of the SME

Test.

(2)

It shall be the function of the central entity to

(a) assist a government department, government entity or

government agency in the application, analysis and

interpretation of the SME Test;

(b) facilitate consultation by the government department,

government entity or government agency with the

relative SME bodies and representatives, including the

Council and sub-committees nominated by the Council

in terms of articles 10(6) and 11(3), on the proposed

instrument in order to determine the effect which the

said instrument might have on SMEs;

(c) help identify alternative measures aimed at mitigating

the negative effect on SMEs identified in the SME Test

without derogating from the aims which the instrument

is meant to achieve.

(3)

In the carrying out of its functions, the central entity shall

(a) act objectively, transparently and efficiently;

(b) ensure that a uniform approach is applied by all

government departments, government entities or

government agencies in fulfilling the obligation under

article 4(1); and

(c) act impartially from the government department,

government entity or government agency proposing

the instrument.

In its function to provide information in terms of article

3(2)( e ), a government department, government entity or

government agency shall

(a) organise all information within its remit related to the

services provided by Government and information

required by Government, which is necessary for the set

up of an enterprise in Malta or for an enterprise to

operate and maintain an existing business in Malta;

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(b) provide the information collated under paragraph (a),

to the Malta Enterprise or to such other entity in terms

of article 8, in both official languages, and in a form to

facilitate its communication by electronic means;

(c) keep the information updated at all times and

communicate such updates to the Malta Enterprise at

once.

(1) Further to the fulfilment of the powers, functions and

responsibilities attributed to a public sector entity offering services

t o b u si n e s s u n d e r a n y l e g i s l a t i o n c o n c e r n i n g t h e i r a r e a o f

competence, a public sector entity offering services to business

shall carry out a customer satisfaction survey every two years, with

the aim to establish the impact which its service is having on the

enterprise sector.

(2) The survey identified under sub-article (1) shall be

conducted by the National Statistics Office, and shall include the

collection, compilation, analysis, and publication of the data.

(3) All relative costs incurred by the National Statistics Office

in the fulfilment of its function under sub-article (2) shall be shared

amongst the public sector entities offering services to business.

(4) In the exercise of its function under sub-article (1), the

public sector entity concerned shall collaborate with the National

Statistics Office and shall make arrangements for the exchange of

information and other forms of assistance as may be necessary.

(5) The results of the survey conducted under sub-article (2)

shall be communicated to the College by the public sector entity

concerned, which shall also make public actions that will be taken

to rectify identified deficiencies. Any remedial actions shall take

place within one year of the result of the survey conducted under

sub-article (2).

Further to the fulfilment of the powers, functions and

responsibilities attributed to Malta Enterprise under its legislation

and any legislation concerning its area of competence, the Malta

Enterprise, or such other entity so appointed by the Minister for

such purpose, shall make available to the public all the information

which it collects from the government department, government

entity or government agency in terms of article 6(b), ensuring that

this represents a complete reference of all Government imposed

obligations and support measures applicable to businesses.

Moreover it shall make this information available through a web-

site which it shall create for such a purpose, and shall keep the

information on the website updated at all times. This information

will not replace the actual legislation or regulation.

(1) It shall be the duty of any organization representing

businesses to promote the drawing up, and where this is already

existing, the wider and better use, of a business code of ethics

amongst its members.

(2) In the exercise of its function under sub-article (1), the

organization concerned shall strive to enhance the relationship

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between clients and providers in the sector, by promoting the

adoption of the principles which emanate from the code of ethics.

(3) A guide to the drawing up of a code of ethics is provided

under Schedule IV.

PART III

Establishment of bodies

(1) There shall be a Council, to be called the Enterprise

Consultative Council.

(2) The Council shall be a consultative and advisory body to

the Government through the Minister, having a distinct legal

personality, and shall consist of the following

(a) a Chairperson, who shall be the Minister;

(b) sixteen (16) other members representing theentities

or Ministries responsible for enterprise or whoseremit

is relevant to the sector, namely

(i) the Department responsible for Commerce;

(ii) Malta Enterprise;

(iii) the Authority responsible for Competition and

Consumer Affairs;

(iv) the Directorate responsible for Policy within the

Ministry responsible for the Economy;

(v) the Economic Policy Division within the

Ministry responsible for Finance;

(vi) the

Department

responsible

for

Local

Government;

(vii) the Ministry responsible for Gozo;

(viii) the Authority responsible for Tourism;

(ix) the Authority responsible for Planning;

(x) the Ministry responsible for Rural Affairs;

(xi) the National Statistics Office;

(xii) the Commissioner for Revenue;

(xiii) the Ministry responsible for Education;

(xiv) the Authority responsible for the Environment

and Resources;

(xv) the Registry of Companies Agency;

(xvi) Business First;

(c) ten (10) members nominated by representative from

constituted bodies, namely the Malta Chamber of

Commerce, Enterprise and Industry, the Malta Chamber

of SMEs, the Malta Hotels and Restaurants Association,

the Gozo Business Chamber, the Gozo Tourism

Association, the Malta Employers’ Association, the

National Council of Women, the Maltese Association of

Women in Business, the Foundation for Women

Entrepreneurs, and the Institute of Financial Services

Practitioners; and

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(d) the Governor of the Central Bank of Malta, ex officio.

(3) For each of the members nominated in accordance with

sub-article (2)(b), (c), and (d), there shall be an equal number of

substitute members representing those same sectors or

organizations and who shall have the right to attend meetings in the

absence of the nominated members.

(4)

The term of office of the members shall be of one year.

(5) The Council may act notwithstanding any vacancy amongst

its members provided that there is a quorum present at the meeting.

(6) Subject to the provisions of this Act, and of any regulations

made thereunder, the Council shall appoint a sub-committee to be

known as the Small Business Advisory Committee, which shall be

made up of persons selected from the business community with

experience of running different types of micro enterprises or having

worked with small businesses.

(7) The Minister may, after consultation with the Council,

make regulations regarding the procedures to be adopted by the

Council, including the quorum for meetings, the filing of casual

vacancies, loss of mandate and substitution of members. For the

purpose of this article, a quorum shall be made up of an equal

proportion of representatives from both sectors, with a minimum of

ten representatives.

(1) It shall be the function of the Council to -

(a) make recommendations to Government on issues

relating to the enterprise sector;

(b) make recommendations to Government on the

formulation of policies in the field of small and

medium enterprises;

(c) work towards improvements in

the

operating

environment for small enterprises;

(d) review, discuss and provide advice on legislative

proposals that have a significant impact on the

enterprise sector;

(e) monitor the proper implementation of government

policy;

(f)

instigate research, monitor, evaluate and advocate

measures for an environment conducive to a high level

of service provision; and

(g) perform such other functions as may be assigned to it

under this Act or any other law.

(2)

In the discharge of its functions, the Council shall

(a) work on identifying issues which hinder enterprise

growth, development and competitiveness;

(b) follow such policy guidelines as may be set out by

Government;

(c) promote cost-conscious and effective regulation;

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(d) promote synergies in the application of government

policy within the Administration; and

(e) undertake research work in-house,

or

through

outsourcing, on relevant issues.

(3) The Council shall have the power to appoint sub-

committees, whose members shall be nominated from constituted

bodies, to address specific issues, and review proposals affecting

SMEs.

The administrative affairs of the Council shall be managed by

the Council Secretariat, and shall fall within the competence of the

Directorate responsible for Enterprise Policy within the Ministry

responsible for the Economy, and the Council, with the approval of the

Minister, may appoint such officers as may be necessary for the due

and efficient discharge of the functions to the Council.

(2) The Council Secretariat shall be responsible for the

Council’s technical and secretarial services, and shall, inter alia, be

responsible for

(a) the provision of administrative and secretarial services

required by the Council, the Committee or the sub-

committee nominated in terms of article 10(6);

(b) ensuring that all information that may be required for

the Council members to effectively carry out their

functions is made available;

(c) ensuring that all follow up action is taken in order to

implement directions or decisions taken by the Council

or the sub-committee;

(d) providing information and carrying out preparatory

work for the purpose of the Council’s activity reports,

and overseeing and assessing execution of these tasks;

(e) ensuring that office services are provided for the

running of the Council and the sub-committee;

(f)

exercising any other responsibility as may be

delegated by the Chairperson on behalf of the Council;

and

(g) ensuring that the Council and the Committee operate

in strict adherence with Government financial

regulations which shall apply to the Council and to the

Committee.

(1) There shall be a College, to be called the College of

Regulators.

(2) The College shall be a consultative and advisory body to

the Government through the Minister, having a distinct legal

personality, and shall consist of the following

(a) a Chairperson, to be appointed by the Minister; and

(b) ninteen (19) members nominated by Government,

representing the government representatives on the

constituted bodies, namely the Authority responsible for

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Financial Services, the Authority responsible for

Competition and Consumer Affairs, the Customs

Department, the Authority responsible for Gaming, the

Regulator responsible for Energy and Water Services, the

Authority responsible for Tourism, the Authority

responsible for Communications, the Authority

responsible for Occupational Health and Safety, the

Authority responsible for Planning, the Authority

responsible for the Environment and Resources, the

Department responsible for Environmental Health, the

Directorate responsible for Plant Health, the Directorate

responsible for Veterinary Regulation, the Directorate

responsible for Fisheries Control, the Authority

responsible for Medicines, the Department responsible for

Commerce, the Registry of Companies Agency, the

Authority responsible for Transport, and the Commission

for the Rights of Persons with Disability.

(3)

(a) For each of the members nominated in accordance with

sub-article (2)(b), there shall be equal number of

substitute members representing those same authorities

who shall have the right to attend meetings in the

absence of the nominated members.

(b) The College may act notwithstanding any vacancy

amongst its members, provided that there is a quorum

present at the meeting.

(4)

The term of office of the members shall be of one year.

(5) The Minister may, after consultation with the College,

make regulations regarding the procedures to be adopted by the

College, including quorum for meetings, the filling of casual

vacancies, loss of mandate and substitution of members.

(1) In the discharge of its functions, the College shall

(a) establish and maintain a regulatory co-operation

system among its members;

(b) ensure better use of regulation to promote efficiency,

economy and competition within the enterprise sector;

(c) establish a work programme as proposed and

submitted by the members and as formally endorsed by

the Minister;

(d) hold regular joint meetings with the Council and

discuss topics of importance for the enterprise sector;

(e) make recommendations to Government in respect of

topics which have been discussed within the College

and following joint meetings with the Council;

(f)

make recommendations to Government in respect of

reviews of policies;

(g) exchange information among its members on current

regulatory issues and trends within the enterprise

sector; and

(h) carry out such other functions as the Government may

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assign to the College from time to time.

(2)

In the discharge of its functions, the College shall

(a) develop measures for the promotion of efficiency,

better economy and competition within the enterprise

sector;

(b) identify regulatory barriers which hinder the growth of

the enterprise sector and make recommendations to

address such issues;

(c) aim at reinforcing and maintaining communication

networks between all representatives or members by

way of regular exchange of status of affairs and

information; and

(d) undertake research work in-house,

or

through

outsourcing, on relevant issues.

The College shall

(a) meet at least once every four months or more

frequently as may be deemed necessary by the

College;

(b) report to the Minister once a year on the work carried out;

and

(c) publish an annual report which shall include a general

report of developments during the period to which it

relates in respect of matters discussed during

meetings.

(1) The administrative affairs of the College shall be

managed by the College Secretariat, and shall fall within the

competence of the Directorate responsible for Policy within the

Ministry responsible for the Economy.

(2) The College Secretariat shall be responsible for the

College’s technical and secretarial services, and the provisions of

article 12(2) shall mutatis mutandis apply to the College

Secretariat.

PART IV

Miscellaneous

The Minister has the power to make regulations

generally

(a) to amend, cancel or substitute any of the Schedules to

this Act; and

(b) for giving effect to the provisions of this Act, and for the

better carrying out of the provisions and objects of this

Act..

(1) The Minister may, by order published in the Gazette

and subject to any conditions, restrictions or limitations, exempt

specific instruments from the application of this Act or part thereof

or from any obligation imposed under this Act.

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(2)

The Minister may revoke any order made under this article.

The Minister may appoint a person to be designated as the

''SME Envoy'' whose tasks shall be, amongst other things

(a) to defend and promote the interests of SMEs with a

view of ensuring that they are mainstreamed a priori

in any national initiatives, whether regulatory or

otherwise;

(b) to promote initiatives to implement the principles

enshrined in this Act; and

(c) to co-ordinate national action with the Member States

of the European Union and the European Union,

particularly with the Commission SME Envoy.

Schedule I

Substituted by

XVIII. 2015.6;

(Article 4)

XXII.2021.9.

Impact Assessment Framework Form

Impact Assessment Framework Form for primary

legislation

Impact Assessment Framework Form for subsidiary legislatio n

Schedule II

(Article 4)

SME Test guidelines

(1)

Consultation with SMEs representatives

New proposed legislation having a direct impact on the business environment has

to be discussed at the Enterprise Consultative Council (ECC) or a specifically set up

sub-committee of the Council. In this discussion the entity responsible for preparing

the legislation has to outline the main objective of the proposal and identify specific

aspects of the proposed legislation, particularly whether proposed legislation

a new compliance cost

requirement for new equipment

impact on staff time

indication as to whether a one-size fits all approach is being applied and

if yes, why?

indication as to whether proposed measures outweigh costs of

implementation (e.g. environmental concerns).

(2)

Preliminary assessment of businesses likely to be affected

During this stage, it should be established whether SMEs are among the affected

population, in particular the sector(s) more likely to be affected.

Relevant sources of information should be explored including SME

representatives. A non-exhaustive list of elements to consider includes, when

applicable, items such as

the number of businesses to be affected

the proportion of the employment concerned in the different categories

of enterprises affected

the weight on the different kind of SMEs in the sector(s) (micro, small

and medium ones)

if the preliminary assessment leads to the conclusion that SMEs are

amongst the affected parties, further analysis should be carried out and -

where appropriate - taken into account when defining the objectives and

developing the policy options in the impact assessment.

(3)

Measurement of the impact on SMEs

The distribution of the potential costs and of the benefits of the proposals with

respect to the business size, differentiating between micro, small, medium and large

enterprises should be analysed qualitatively and, if possible quantitatively. It is

important to establish to which extent the proposal affects SMEs’ competitiveness or

the business environment in which it will affect their operations by establishing the

Financial costs - created by the obligation to pay fees or duties;

Substantive costs - created by the obligation to adapt the nature of the

product/service and/or production/service delivery process to meet

economic, social or environmental standards (e.g. the purchase of new

equipment, training of staff, additional investments to be made);

Administrative costs - created by the obligation to provide information

on the activities or products of the company including one-off and

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recurring administrative costs (e.g. resources to acquire or provide

information);

Cost and impacts identified for small and micro enterprises should be

compared with those for larger enterprises.

Additionally one may also consider other factors such as

possible loss of competitiveness due to external factors such as the

availability of finance,

tax regimes, access to resources or skills, etc.;

possible changes in the behaviour of competitors, suppliers or

customers;

possible impacts on barriers to entry, competition in the market and

market structure;

possible impact on innovation, understood as both technological and

non-technological;

innovation (process, marketing, etc.);

benefits, if applicable, coming from the proposal (burden reduction,

improved productivity and competitiveness, greater investments or

innovation etc.).

(4)

Assessment of alternative options and mitigating measures

If the abovementioned cost/benefit analysis indicates that small and micro are

facing a relatively higher burden, one might consider the use of specific measures in

order to ensure a level playing field and the respect of the proportionality principle.

When the analysis made under the previous section shows that small and micro

businesses are disproportionately affected or disadvantaged compared to larger

companies, one should consider (one a case by case basis) using possible mitigating

Complete or partial size-related exemptions for small or micro-

businesses (example: businesses below certain thresholds do not have to

comply with certain specific obligations when this does not invalidate

the original purpose of the legislation)

Temporary reduction or exemptions (example: transition periods during

which small and micro enterprises are exempted or longer intervals for

certain obligations)

Tax reductions or direct financial aid to compensate costs incurred

provided this is compatible with existing legislation (on competition or

international trade)

Reduced fees (example: when these fees are particularly high and/or

represent a fixed cost that would be felt disproportionately by small and

micro enterprises)

Simplified reporting obligations for small and micro enterprises

(example: in the area of statistics, explore possible synergies with

already existing reporting obligations)

Specific information campaigns or user guides, training and dedicated

help-desks/offices (example: specific help-desks providing tailored

information for small businesses)

Systematically consider general simplification initiatives which can

particularly benefit small and micro enterprises (example: possibility to

use on-line facilities, simplified inspections)

When assessing possible mitigation measures for SMEs, it is important that the

costs this could produce are also fully considered and included in the final

assessment.

Schedule III

Amended by

(Article 3)

XXII.2021.10.

Explanatory Notes

(i)

Explanatory Notes must be published alongside every instrument that has

been identified as having an impact on the business sector.

(ii) The government department, government entity or government agency

sponsoring the instrument is responsible for drafting the explanatory notes to accompany

it. The draft must be agreed with by the Office of the State Advocate, which will check

that it is consistent with the instrument..

(iii) The Explanatory Notes are not intended to be an exhaustive description of

the instrument or to be a substitute for it. Their purpose is to make the instrument

accessible to readers who are not legally qualified and who have no specialised

knowledge of the subject matter.

(iv) The Notes are not legislation. They do not form part of the instrument and

are not amendable by Parliament or the House of Representatives nor endorsed by

them. They are not designed to resolve ambiguities in the text of the instrument since

if ambiguities are identified as the instrument progresses, they should be amended

accordingly. The Notes should make clear that they do not purport to be authoritative

rulings on the interpretation of the proposed legislation, as only the courts can give

these.

(v) The Notes should usually contain the following items: Introduction,

Summary and background, Overview of the structure of the instrument,

Commentary, and concluding sections.

(vi) If the instrument implements a European Directive, the Explanatory Notes

should include in the form of an annex a set of “Transposition Notes” illustrating

how the Government intends to transpose all the main elements of the Directive(s)

into Maltese law.

Schedule IV

(Article 9)

Ethical Values in SMEs

Drawing up a code of ethics

A code of ethics is the main tool for implementing an ethics policy. It translates

core values into specific commitments and expected behaviour in relation to the

organisation’s key stakeholder groups (i.e. customers, employees, suppliers and

contractors, providers of finance and community). A code will also be a good place

to address environmental responsibilities and to state how the company seeks to

relate to its competitors. It is also helpful to ask employees about ethical issues that

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concern them and on which they would like guidance when drawing up a code.

Typical issues to be addressed in a code of ethics

A code of ethics should pledge to

1. Accurately represent what the enterprise is capable of in all marketing,

advertising and promotional materials.

2. Accurately represent available skills, recognizing limitations and only

offering professional services that it feels competent to provide.

3. Inform prospective clients of any conditions that could limit the

enterprise’s effectiveness.

4. Place each client’s best interest first and foremost, making reasonably

certain that the enterprise has the necessary skills and resources to

provide the support needed before entering into a client relationship.

5. Clearly communicate the terms and conditions of any client

relationship, identifying the responsibilities of all parties, and

documenting these provisions in a signed agreement.

6. Honour all contracts, agreements and commitments.

7. Only make commitments that are within the enterprise’s power and

abilities to deliver.

8. Accept responsibility for all work it does, admit mistakes and do

whatever is possible to rectify any problems that arise.

9. Maintain accurate and sufficient records of all client work.

10. Safeguard and protect all private and confidential information entrusted

to it or obtained in the course of any working relationship.

11. Not release any client information without prior consent or unless given

instruction or permission by client to do so on his behalf.

12. Ensure that electronic and hardcopy record disposal is handled in a

confidential and secure manner.

13. Protect the interest of its clients at all times.