FCA conduct risk requirements

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This Overview guides practitioners to key materials on FCA conduct risk requirements, with links to core rules and guidance.

Conduct risk sits at the core of the FCA’s statutory objectives under the Financial Services and Markets Act 2000, requiring firms to organise and run their businesses to prevent customer detriment and market harm. The framework is principles‑based and outcomes‑focused, applying across product design, distribution, servicing and governance.

Practitioners should understand the interaction between the FCA Principles for Businesses (PRIN) and sourcebooks, including the Consumer Duty in PRIN 12, the Senior Managers and Certification Regime in SYSC and COCON, and product governance in PROD. Sectoral conduct rules in COBS, ICOBS, MCOB and CONC govern disclosure, suitability/affordability, financial promotions and post‑sale processes. Systems and controls expectations in SYSC cover culture, remuneration, outsourcing and whistleblowing.

Key practical issues include governance arrangements and accountability mapping, Conduct Rules training and breach reporting, MI and root‑cause analysis, treatment of vulnerable customers, fair value assessments under the Duty, oversight of distribution chains and third‑party risk, incentive scheme governance, complaints handling, redress (DISP), remediation and culture change programmes. Supervisory tools and enforcement under FSMA, including...

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