FCA PRINCIPLES OF BUSINESS

Question 1

PRINCIPLE 1

Answer 1

INTEGRITY - FIRM MUST ACT WITH INTEGRITY

Question 2

PRINCIPLE 2

Answer 2

Skill, care and diligence

Question 3

PRINCIPLE 3

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

PRINCIPLE 4

Answer 4

Financial prudence - FIRM MUST HAVE ADEQUATE FINANCIAL RESOURCES

Question 5

PRINCIPLE 5

Answer 5

MARKET CONDUCT - A firm must observe proper standards of market conduct.

Question 6

PRINCIPLE 6

Answer 6

CUSTOMER INTERESTS - A firm must pay due regard to the interests of its customers and treat them fairly.

Question 7

PRINCIPLE 7

Answer 7

Communications with clients - A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.

Question 8

PRINCIPLE 8

Answer 8

CONFLICT OF INTERESTS - A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.P

Question 9

PRINCIPLE 9

Answer 9

CUSTOMERS: RELATIONSHIP 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.

Question 10

PRINCIPLE 10

Answer 10

CLIENTS ASSETS - A firm must arrange adequate protection for clients’ assets when it is responsible for them

Question 11

PRINCIPLE 11

Answer 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.

Question 12

PRINCIPLE 12

Answer 12

CONSUMER DUTY - A firm must act to deliver good outcomes for retail custome