GIM3080 | Regulatory framework: the FSA’s Principles for Businesses

The PRIN sourcebook sets out the fundamental obligations of all firms under the regulatory system. These principles are the foundation for the other rules and guidance in the Handbook:

• Integrity

• Skill, care and diligence

• Management and control

• Financial prudence

• Market conduct

• Customers’ interests

• Communication with clients

• Conflicts of interest

• Customers: relationships of trust

• Clients’ assets

• Relations with regulators

These are all applicable to insurers as to other financial firms. PRIN 3 (a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems) and PRIN 4 (a firm must maintain adequate financial resources) are particularly prominent in the requirement imposed by the Prudential sourcebook for Insurers (GIM3120).