FCA Principles for Businesses (PRIN)

Question 1

What does PRIN stand for?

Answer 1

Principles for Businesses

Question 2

What is PRIN?

Answer 2

PRIN is 12 general statements of the fundamental obligations for all authorised firms.

Mirrored in the PRA Rulebook’s ‘Fundamental Rules’ with numbers 1 to 4, 8 to 11 being most relevant to its area of responsibility.

In the event of any conflict between the FCA tules and principles, the FCA principles will take precedence.

The principles are high-level standards that will apply even if there are no rules or procedures for a particular situation.

Question 3

What is the first principle?

Answer 3

Integrity

Question 4

What is the second principle?

Answer 4

Skill, care and diligence

Question 5

What is the third principle

Answer 5

Management and control

Question 6

What is the 4th principle

Answer 6

Financial prudence - must maintain adequate financial resources

Question 7

What is the 5th principle?

Answer 7

Market conduct - must observe proper standards of market conduct

Question 8

What is the 6th Principle?

Answer 8

Customers interests - firm must pay due regard to the interest of its customers and treat them fairly

Question 9

What is the 7th Principle ?

Answer 9

Communication with clients - 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 9

What is the 8th Principle?

Answer 9

Conflict of interest - must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client