FCA Handbook—COCON—Senior Managers Regime Code of Conduct
Produced in partnership with Mark Compton and Lauren Smith of Mayer Brown International LLP
FCA Handbook—COCON—Senior Managers Regime Code of Conduct

The following Financial Services guidance note Produced in partnership with Mark Compton and Lauren Smith of Mayer Brown International LLP provides comprehensive and up to date legal information covering:

  • FCA Handbook—COCON—Senior Managers Regime Code of Conduct
  • What is COCON and what is the purpose of the rules?
  • Which firms and individuals does COCON apply to?
  • The key rules within COCON
  • Rule 1
  • Rule 2
  • Rule 3
  • Rule 4
  • Rule 5
  • SC1
  • more

STOP PRESS: The Senior Managers and Certification Regime (SM&CR) was extended to insurers regulated by the FCA and PRA from 10 December 2018, replacing the Senior Insurance Managers Regime (SIMR). This Practice Note will be updated shortly to reflect these changes.

What is COCON and what is the purpose of the rules?

COCON is the Financial Conduct Authority’s (FCA) Code of Conduct sourcebook setting out conduct rules for certain individuals in banks, building societies, credit unions, Prudential Regulation Authority (PRA)-designated investment firms and insurers and reinsurers that fall within the scope of the Solvency II Directive (2009/138/EC) (Solvency II).

COCON is designed to ensure that the FCA can adequately regulate the conduct of individuals in these firms and to create a framework which encourages individuals to take greater responsibility for their actions and make it easier to hold individuals to account.

COCON is part of the High Level Standards of the FCA Handbook. These requirements are drafted as high-level principles similar to the FCA’s Principles for Business (PRIN) and the Statements of Principle and Code of Practice for Approved Persons (APER) .

COCON was developed as a response to the financial crisis which led to drastic reforms in the banking sector and a review of banking culture and practice by the Parliamentary Commission on Banking Standards (PCBS). The PCBS’s recommendations in June