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You are viewing the version of the document as on 2023-04-28.

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    2023-04-28

COCON 2.1 1Individual conduct rules

COCON 2.1.1 R RP

Rule 1: You must act with integrity.

COCON 2.1.2 R RP

Rule 2: You must act with due skill, care and diligence.

COCON 2.1.3 R RP

Rule 3: You must be open and cooperative with the FCA, the PRA and other regulators.

COCON 2.1.4 R RP

Rule 4: You must pay due regard to the interests of customers and treat them fairly.

COCON 2.1.5 R RP

Rule 5: You must observe proper standards of market conduct.

COCON 2.2 1Senior manager conduct rules

COCON 2.2.1 R RP

SC1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

COCON 2.2.2 R RP

SC2: You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system.

COCON 2.2.3 R RP

SC3: You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively.

COCON 2.2.4 R RP

SC4: You must disclose appropriately any information of which the FCA or PRA would reasonably expect notice.

COCON 2.3 1Firms: training and breaches

COCON 2.3.1 G RP

Under section 64B of the Act, an SMCR firm3 must:

  1. (1)

    ensure that all persons subject to the rules in COCON are notified of the rules that apply to them; and

  2. (2)

    take all reasonable steps to ensure that those persons understand how the rules in COCON apply to them.

COCON 2.3.2 G RP
  1. (1)

    The steps that an SMCR firm3 must take to ensure3 that its conduct rules staff understand how the rules in COCON apply to them include the provision of suitable training.

  2. (2)

    Suitable training should always ensure that those who are subject to the rules in COCON have an awareness and broad understanding of all of the rules in COCON, and that they also have a deeper understanding of the practical application of the specific rules which are relevant to their work.

  3. (3)

    For example:

    1. (a)

      for individuals who trade in the markets, rule 5 in COCON 2.1.5R may apply in various circumstances arising in the individual’s day-to-day activities and additional training may be appropriate to ensure that the individual knows how that rule applies to those activities in those various circumstances; or

    2. (b)

      for individuals who deal directly with customers, rule 4 in COCON 2.1.4R may apply in various circumstances which makes additional training appropriate for such individuals.

COCON 2.3.3 G RP

There are2rules and guidance in SUP 15.3 (General notification requirements) and2SUP 15.11 (Notification of COCON breaches and disciplinary action) that deal with reporting by an SMCR firm3 of COCON breaches to the FCA2.