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FCA PRIN 2.1

Delineates the fundamental obligations of those regulated by the FCA.

Rule Overview

Jurisdiction: United Kingdom

Regulator: FCA

Topic: General Requirements

Overview
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Further Reading

Authorized firms and individuals performing controlled functions must:

  • be aware of these principles;
  • comply with them; and
  • understand how they apply to the day-to-day exercise of controlled functions.
01.
Integrity: A firm must conduct its business with integrity.
02.
Skill, care and diligence: A firm must conduct its business with due skill, care, and diligence.
03.
Management and control: A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.
04.
Financial prudence: A firm must maintain adequate financial resources.
05.
Market conduct: A firm must observe proper standards of market conduct.
06.
Customers' interests: A firm must pay due regard to the interests of its customers and treat them fairly.
07.
Communications with clients: A firm must pay due regard to the information needs of its clients and communicate information to them in a way that is clear, fair, and not misleading.
08.
Conflicts of interest: A firm must manage conflicts of interest fairly, both between itself and its customers, and between a customer and another client.
09.
Customers: relationships of trust: A firm must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgment.
10.
Clients' assets: A firm must arrange adequate protection for clients' assets when it is responsible for them.
11.
Relations with regulators: A firm must deal with its regulators in an open and cooperative way and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.
12.
Consumer Duty: A firm must act to deliver good outcomes for retail customers.

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Further Reading

Collyer Bristow, The new FCA consumer duty Go to https://collyerbristow.com/longer-reads/the-new-fca-consumer-duty/