1.Member States shall draw up rules of conduct which investment firms shall observe at all times. Such rules must implement at least the principles set out in the following indents and must be applied in such a way as to take account of the professional nature of the person for whom the service is provided. The Member States shall also apply these rules where appropriate to the non-core services listed in Section C of the Annex. These principles shall ensure that an investment firm: - acts honestly and fairly in conducting its business activities in the best interests of its clients and the integrity of the market, - acts with due skill, care and diligence, in the best interests of its clients and the integrity of the market, - has and employs effectively the resources and procedures that are necessary for the proper performance of its business activities, - seeks from its clients information regarding their financial situations, investment experience and objectives as regards the services requested, - makes adequate disclosure of relevant material information in its dealings with its clients, - tries to avoid conflicts of interests and, when they cannot be avoided, ensures that its clients are fairly treated, and - complies with all regulatory requirements applicable to the conduct of its business activities so as to promote the best interests of its clients and the integrity of the market.
2.Without prejudice to any decisions to be taken in the context of the harmonization of the rules of conduct, their implementation and the supervision of compliance with them shall remain the responsibility of the Member State in which a service is provided.
3.Where an investment firm executes an order, for the purposes of applying the rules referred to in paragraph 1 the professional nature of the investor shall be assessed with respect to the investor from whom the order originates, regardless of whether the order was placed directly by the investor himself or indirectly through an investment firm providing the service referred to in Section A (1) (a) of the Annex.