FCA and PRA licenses (authorisations) and ongoing compliance support, training, recruitment. Contact us 7 days a week, 8am-11pm. Free consultations. Phone / Whatsapp: +4478 3368 4449 Email: hirett.co.uk@gmail.com
Principles for Business (PRIN)
4.1 Introduction
The FCA Principles are applicable to all regulated firms and are defined as a general statement of fundamental obligations expected of firms under the regulatory system. Whilst the Principles may seem generic and non-definitive on their own, they are the foundation on which the entire FCA regulatory system is based and of which all handbook rules and guidance are derived.
If a Principle or any rule that is governed by a Principle is breached, the firm will be liable for disciplinary sanctions under the regulatory system, which can result in penalties of varying degrees.
4.2 the Principles
1) Integrity – A firm must conduct its business with integrity.
2) Skill, Care and Diligence – A firm must conduct its business with due skill, care and diligence.
3) Management and Control – A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.
4) Financial Prudence – A firm must maintain adequate financial resources.
5) Market Conduct – A firm must observe proper standards of market conduct.
6) Customers’ Interests – A firm must pay due regard to the interests of its customers and treat them fairly.
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.
8) Conflicts of Interest – A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.
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 upon its judgement.
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 appropriate regulator appropriately anything relating to the firm of which that regulator would reasonably expect notice.
4.2.1 Our Approach to PRIN
The company is committed to the Principles for Business and have developed policies, procedures, controls and measures to ensure that we comply with each principle throughout our functions and activities.
We understand that PRIN applies with respect to the carrying on of: –
- regulated activities
- activities that constitute dealing in investments as principal
- ancillary activities in relation to designated investment business, home finance activity, credit-related regulated activity, insurance mediation activity and accepting deposits
We also understand and have taken measures the ensure that PRIN applies with respect to the communication and approval of all financial promotions which: –
- if communicated by an unauthorised person without approval would contravene section 21(1) of the Act (Restrictions on financial promotion)
- may be communicated by a firm without contravening section 238(1) of the Act (Restrictions on promotion of collective investment schemes).
We understand that the Principles apply with respect to activities wherever they are carried on; otherwise, apply with respect to activities carried on from an establishment maintained by the company in the United Kingdom unless another applicable rule which is relevant to the activity has a wider territorial scope, in which case the Principle applies with that wider scope in relation to the activity described in that rule.