What is the purpose of the FCA's Principles for Business (PRIN)?

The FCA's Principles for Business (PRIN) are foundational guidelines that establish the essential conduct standards for financial firms operating in the UK. The primary purpose of these principles is to outline the fundamental obligations that firms have to treat their customers fairly. This focus on fairness ensures that firms act in a manner that prioritizes the best interests of their customers, fostering transparency, integrity, and accountability in financial services. By emphasizing fair treatment, these principles aim to protect consumers and enhance their trust in the financial system.

While regulating investment portfolios, monitoring competitor activities, and developing innovative financial products are all relevant aspects of the financial services landscape, they do not capture the core intention of the PRIN. The principles are specifically designed to influence how firms engage with their clients, ensuring that customer welfare is at the heart of their operations.