CONC 1.1 Application and purpose

1. (1)

   1The Consumer Credit sourcebook (CONC) is the specialist sourcebook for credit-related regulated activities.

2. (2)

   CONC applies as described in this chapter, unless the application of a chapter, section or a rule is described differently in the chapters, sections or rules in CONC.

The purpose of CONC is to set out the detailed obligations that are specific to credit-related regulated activities and activities connected to those activities carried on by firms. These build on and add to the high-level obligations, for example, in PRIN, GEN and SYSC, and the requirements in or under the CCA.

Firms are reminded that other parts of the FCA Handbook and PRA Handbook also apply to credit-related regulated activities. For example, the arrangements for supervising firms, including applicable reporting obligations, are described in the Supervision manual (SUP) and the detailed requirements for handling complaints are set out in the Dispute Resolution: Complaints sourcebook (DISP). The Client Assets sourcebook (CASS) also contains rules about client money that apply in certain circumstances.

The Principles for Businesses (PRIN) apply as a whole to firms with respect to credit-related regulated activities and ancillary activities in relation to credit-related regulated activities (see PRIN 3). In carrying on their activities, firms should pay particular attention to their obligations under:

1. (1)

   Principle 1 (a firm must conduct its business with integrity);

2. (2)

   Principle 2 (a firm must conduct its business with due skill, care and diligence);

3. (3)

   Principle 3 (a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems);

4. (4)

   Principle 6 (a firm must pay due regard to the interests of its customers and treat them fairly);

5. (5)

   Principle 7 (a firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading);

6. (6)

   Principle 9 (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);

7. (7)

   Principle 10 (a firm must arrange adequate protection for clients' assets when it is responsible for them); 2

8. (8)

   Principle 11 (a firm must deal with its regulators in an open and cooperative way, and must disclose to the appropriate regulator appropriately anything relating to the firm of which that regulator would reasonably expect notice); and2

9. (9)

   Principle 12 (a firm must act to deliver good outcomes for retail customers), including PRIN 2A.2