SIFA 5.2 Who do the Principles apply to and what is their purpose?

The application and purpose of the Principles is as follows:

• They apply to every firm. They are a general statement of the fundamental obligations of firms under the regulatory system.
• They express what is meant by the fit and proper standard set for firms in the threshold conditions. Breaching the Principles may call into question whether a firm is still fit and proper.
• They require a firm to pay due regard to the interests of its customers and treat them fairly.
• They are also designed as a general statement of regulatory requirements that are to be applied in new or unforeseen situations (PRIN 1).