Which Principles are relevant for firms when they consider their responsibilities to treat customers fairly?
The key Principle for firms to consider is Principle 6 – ‘A firm must pay due regard to the interests of its customers and treat them fairly’. However, firms should also consider their regulatory obligations under the other principles which also contribute to ensuring that customers are treated fairly. For example: • Principle 2 – ‘A firm must conduct its business with due skill, care and diligence’; • Principle 3 – ‘A firm must take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems’; and • Principle 7 – ‘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’. These principles mean that, where the firm does not have a direct interface with customers, the regulatory obligations under the other principles will contribute to the fair treatment of customers.
