Category: Compliance & AML · Reviewed by Mark Fox, Broker · Renewals · Last reviewed June 2026
The 12 high-level principles in the FCA Handbook that govern the conduct and integrity of every authorised firm and provide the standard against which most FCA enforcement decisions are framed.
PRIN — the Principles for Businesses — is one of the shortest and most powerful parts of the FCA Handbook. It states 12 core principles that an authorised firm must observe at all times and in respect of all its regulated and (in some cases) unregulated activity. The Principles are general rules and can found enforcement action even where no detailed rule has been breached.
PRIN sits in the FCA Handbook, made under FSMA sections 137A and 138. Principles 1–11 are long-standing; Principle 12 (the Consumer Duty) was added by Policy Statement PS22/9 effective 31 July 2023 for new and existing products open to sale or renewal, and 31 July 2024 for closed products.
The 12 Principles are: (1) integrity; (2) skill, care and diligence; (3) management and control; (4) financial prudence; (5) market conduct; (6) customers’ interests; (7) communications with clients; (8) conflicts of interest; (9) customers — relationships of trust; (10) clients’ assets; (11) relations with regulators; and (12) a higher standard of care and the cross-cutting Consumer Duty. Principles 6 and 7 are disapplied for retail customers in scope of Principle 12 (the Consumer Duty takes their place).
Some Principles apply only to certain customer types or activities. For example, Principle 5 (market conduct) is most relevant to firms active in financial markets; Principle 9 (relationships of trust) bites where the firm is providing advice. The Consumer Duty (Principle 12 and the cross-cutting rules in PRIN 2A) operates with a higher standard than Principles 6 and 7 and replaces them for retail customers within scope.
A breach of PRIN can support a regulatory enforcement action even where no detailed rule has been broken. The 2014 Final Notice in respect of one major bank’s foreign exchange business cited Principle 5 (market conduct) and Principle 3 (management and control) at length. For an insurance intermediary, Principle 6 (now Principle 12 / PRIN 2A for retail) is the most commonly cited foundation for fair-treatment enforcement.
FCA Handbook, Principles for Businesses (PRIN). Financial Services and Markets Act 2000, sections 137A and 138. FCA Policy Statement PS22/9 (A new Consumer Duty).
By Matt Bartlett, Director, on 2026-06-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote