Understand Conduct Rules

The FCA has the power to write Conduct Rules and apply them to all employees working within a firm. The Conduct Rules will replace the previous APER Handbook.

There are four Conduct Rules that apply to senior managers and a further five that apply to all non-ancillary staff within a firm.

Training and Notification Requirements

Firms must make sure they comply with the relevant Conduct Rules and provide conduct training to all staff. Firms must also ensure that the process of complying with the Conduct Rules is adequately documented - for example, by including details of discussions, challenges and decisions on the their adherence to the Conduct Rules in minutes of the relevant committee meetings.

The Financial Services and Market Act (FSMA) requires firms to notify the FCA when disciplinary action is taken against an employee of the firm. If disciplinary action is taken against an SMF, the FCA should be notified within seven days. For all other individuals, the FCA must be notified once a year.

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