FCA Principles For Business

Question 1

1:integrity

Answer 1

Integrity
A firm must conduct its business with integrity

Question 2

2:skill, care and diligence

Answer 2

Skill, care and diligence:
A firm must conduct its business with due skill, care and diligence

Question 3

3: management and control

Answer 3

Management and control
A firm must take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems

Question 4

4: financial prudence

Answer 4

Financial prudence
A firm must maintain adequate financial resources

Question 5

5:market conduct

Answer 5

Market conduct:
A firm must observe proper standards of market conduct

Question 6

6: customer interests

Answer 6

A firm must pay due regard to the interests of its customers, and treat them fairly

Question 7

7: communication with clients

Answer 7

Communication 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

Question 8

8: conflicts of interest

Answer 8

Conflicts of interest
A firm must manage conflicts of interest fairly, both between itself and its customers and between one customer and another

Question 9

9: customers: relationships of trust

Answer 9

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 on its judgement

Question 10

10:client assets

Answer 10

Clients assets:
A firm must arrange adequate protection for clients assets when it is responsible for them

Question 11

11: relations with regulators

Answer 11

Relations with regulators:
A firm must deal with its regulators in an open and co-operative way, and must disclose anything of which the FCA or PRA would reasonably expect notice