FCA Handbook Overview
Complete guide to the Financial Conduct Authority regulatory handbook and its key sourcebooks.
View original at Financial Conduct Authority
FCA Handbook Overview
The FCA Handbook is the Financial Conduct Authority's comprehensive rulebook for firms operating in UK financial services.
Handbook Structure
High Level Standards
- PRIN - Principles for Businesses (11 Principles)
- SYSC - Senior Management Arrangements, Systems and Controls
- COCON - Code of Conduct
- FIT - Fit and Proper Test for Employees and Senior Personnel
Prudential Standards
- GENPRU - General Prudential Sourcebook
- BIPRU - Prudential Sourcebook for Banks, Building Societies and Investment Firms
- MIPRU - Prudential Sourcebook for Mortgage and Home Finance Firms
Business Standards
- COBS - Conduct of Business Sourcebook
- ICOBS - Insurance: Conduct of Business Sourcebook
- MCOB - Mortgages and Home Finance: Conduct of Business Sourcebook
- BCOBS - Banking: Conduct of Business Sourcebook
Regulatory Processes
- SUP - Supervision Manual
- DEPP - Decision Procedure and Penalties Manual
- EG - Enforcement Guide
The 11 FCA Principles
- Integrity - Act with integrity
- Skill, care and diligence - Conduct business with due skill
- Management and control - Adequate risk management
- Financial prudence - Maintain adequate resources
- Market conduct - Observe proper market standards
- Customers' interests - Pay due regard to customers
- Communications - Communicate clearly and fairly
- Conflicts of interest - Manage conflicts fairly
- Customers: relationships of trust - Suitable advice
- Clients' assets - Adequate protection
- Relations with regulators - Deal openly with FCA
Consumer Duty (2023)
The new Consumer Duty sets higher standards:
- Consumer Principle - Act to deliver good outcomes
- Cross-cutting rules - Act in good faith, avoid harm, enable pursuit of financial objectives
- Four Outcomes - Products/services, price/value, consumer understanding, consumer support
SM&CR - Senior Managers and Certification Regime
Senior Manager Functions (SMFs)
- SMF1: Chief Executive
- SMF2: Chief Finance
- SMF3: Executive Director
- SMF9: Chair
- SMF10: Chair of Risk Committee
- SMF11: Chair of Audit Committee
- SMF12: Chair of Remuneration Committee
Conduct Rules
- Individual Conduct Rules (apply to all)
- Senior Manager Conduct Rules (apply to SMFs)
Key Compliance Considerations
- Regulatory permissions - Ensure correct permissions for activities
- Training and competence - TC requirements for staff
- Financial promotions - Approval and compliance
- Complaints handling - DISP requirements
- Reporting - Regular returns (REP-CRIM, complaints data, etc.)