Conduct Risk - Developing and Maintaining an effective framework

The Conduct of Business rules, (including COBS, ICOBS, MCOB and BCOBS sourcebooks) provide specific requirements which firms must meet; these requirements have a direct impact on the treatment of customers; however these rules cannot provide complete coverage of regulated firm's activity. The FCAs Principles for Businesses specify that "A firm must pay due regard to the interests of its customers and treat them fairly." (PRIN 2.1.1 Principle 6); this is a principle which, in theory does provide coverage of all aspects of a firm's activities which have an impact on customers.

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