The FCA have set out their 8 key principles of what they believe good regulation should look like. You can find out more in the FCA Handbook here.

But what does that mean for your business and what does good look like?

A firm must:

  • conduct its business with integrity.
  • conduct its business with due skill, care and diligence.
  • take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems.
  • maintain adequate financial resources.
  • observe proper standards of market conduct.
  • pay due regard to the interests of its customers and treat them fairly.
  • 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.
  • manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.
  • take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgment.
  • arrange adequate protection for clients’ assets when it is responsible for them.
  • 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.

Good regulation goes hand in hand with good technology and we’re here to help you navigate this ever changing environment. If you’d like to find out more about having your own investment platform whether you’re new to regulation or you’re already authorised please feel free to get in touch and speak to one of our experts.

 

Photo by Everaldo Coelho on Unsplash

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