Schedule 1 — Principles

1. Principles of Conduct
1.1 Principles 3, 4 and 5 also take into account any activities of other members of a Licensed Firm's Group where those activities impact or potentially impact the Licensed Firm's compliance with these Principles.
1.2 References in the Principles to Clients include references to potential Clients.
1.3 The Principles

Principle 1

A Licensed Firm should observe high standards of integrity in the conduct of its business.
Principle 2

Skill, Care and Diligence
A Licensed Firm should act with due skill, care and diligence in the conduct of its business.
Principle 3

A Licensed Firm should ensure that its affairs are managed effectively by its senior management.
Principle 4

Systems and Controls
A Licensed Firm should have effective systems and controls including risk management systems and adequate human and technological resources.
Principle 5

Financial Prudence
A Licensed Firm should maintain adequate financial resources.
Principle 6

Market Conduct
A Licensed Firm should observe proper standards of market conduct.
Principle 7

Clients' Interests
A Licensed Firm should have due regard to its Clients' interests and treat them fairly.
Principle 8

Communications with Clients
A Licensed Firm should 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.
Principle 9

Conflicts of Interest
A Licensed Firm should manage conflicts of interest fairly, both between itself and its Client, and between a Client and another Client, and must organise its affairs such that conflicts can be identified.
Principle 10

Relationship of Trust
A Licensed Firm should discharge faithfully a responsibility of trust toward a Client, including, taking reasonable care to ensure the suitability of its advice and discretionary decisions for any Client who is entitled to rely upon its judgment.
Principle 11

Client Assets
A Licensed Firm should arrange adequate protection for Clients' assets when it is responsible for them in accordance with the responsibility it has accepted.
Principle 12

A Licensed Firm should ensure that information of a confidential nature received in the course of dealings with its Clients is treated in an appropriate manner.
Principle 13

Relations with the QFCA
A Licensed Firm should deal with all relevant rules and regulations in an open and cooperative manner and keep the QFCA promptly informed of anything relating to the Licensed Firm, of which the QFCA would reasonably expect notice.