The Financial Services Authority (FSA) sets out General Principles for the Conduct of Business to which all authorised entities must subscribe. Full members of the BVCA are regulated by the Financial Services Authority and are bound by these principles in their conduct of business. In any case where it is found that these principles are not being adhered to, the Council of the BVCA has the right to withdraw membership.
1. Integrity: A firm must conduct its business with integrity.
2. Skill, care and diligence: A firm must conduct its business with due skill, care and diligence.
3. Management and control: A firm must take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management systems.
4. Financial prudence: A firm must maintain adequate financial resources.
5. Market conduct: A firm must observe proper standards of market conduct.
6. Customers' interests: A firm must pay due regard to the interests of its customers and treat them fairly.
7. Communications with customers: A firm must pay due regard to the information needs of its customers, and communicate information to them in a way which is clear, fair and not misleading.
8. Conflicts of interest: A firm must manage conflicts of interest fairly, both between itself and its customers and between one customer and another.
9. Customers: relationships of trust: A firm must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgment.
10. Customers' assets: A firm must arrange adequate protection for customers' assets when it is responsible for them.
11. Relations with regulators: A firm must deal with its regulators in an open and cooperative way, and must tell the FSA promptly anything relating to the Firm of which the FSA would reasonably expect prompt notice.
In addition to the Principles for Businesses, individuals who are regulated by the FSA in the conduct of investment business and who are approved by the FSA as such must also comply with the following Statements of Principle:
1. An approved person must act with integrity in carrying out his controlled function.
2. An approved person must act with due skill, care and diligence in carrying out his controlled function.
3. An approved person must observe proper standards of market conduct in carrying out his controlled function.
4. An approved person must deal with the FSA and with other regulators in an open and cooperative way and must disclose appropriately any information of which the FSA will reasonably expect notice.
5. An approved person performing a significant influence function must take reasonable steps to ensure that the business of the firm for which he is responsible in his controlled function is organized so that it can be controlled effectively.
6. An approved person performing a significant influence function must exercise due skill, care and diligence in managing the business of the firm for which he is responsible in his controlled function.
7. An approved person performing a significant influence function must take reasonable steps to ensure that the business of the firm for which he is responsible in his controlled function complies with the relevant requirements and standards of the regulatory system.
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