The FCA handbook

The FCA has published a handbook of rules and guidance adopting relevant parts of the old FSA Handbook and rules making changes only when necessary to implement the new regulatory structure.

FCA handbook is
split into the following

Glossary – Terms used in the handbook,

· High level standards – The standards applying to all firms and approved persons,

· Prudential standards – Sets out the prudential requirements for firms,

· Business standards – Detailed requirements relating to firms’ day-to-day business,

· Regulatory processes – The manuals describing the operation of the FCA’s authorisation,
supervisory and disciplinary functions,

· Redress – The processes for handling complaints and compensation,

· Specialist sourcebooks – Requirements applying to individual business sectors,

· Listing, prospectus and disclosure.

Lists the following 11 principles of business by which all regulated firms are expected to abide

  1. Integrity A firm must conduct its business with integrity.
  1. Skill, care and diligence A firm must conduct its business with due skill, care and diligence.
  1. Management and control A firm must take reasonable care to organise
    and control its affairs responsibly and effectively, with adequate risk management systems.
  1. Financial prudence A firm must maintain adequate financial resources.
  1. Market conduct A firm must observe proper standards of market conduct.
  1. Customers’ interests A firm must pay due regard to the interests of its customers
    and treat them fairly.
  1. 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.
  1. Conflicts of interest A firm must manage conflicts of interest fairly, both
    between itself and its customers and between a customer and another client.
  1. 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.
  1. Clients’ assets A firm must arrange adequate protection for clients' assets when it is responsible for them.
  1. Relations with the regulator 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.

Principles of good regulation

Efficiency and economy

Proportionality

Sustainable growth

Consumer responsibility

Senior Management responsibility

Recognising the different businesses

Openness and disclosure

Transparency