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COCON 2.4 The Consumer Duty


COCON 2.4.1R

1This section applies to Rule 6 in COCON 2.1 (You must act to deliver good outcomes for retail customers).

COCON 2.4.2R

1In this section, the term “you” means a member of a firm’s conduct rules staff.

Meaning of retail customer

COCON 2.4.3R
  1. (1)

    1This rule describes how the definition of retail customer applies for the purposes of Rule 6.

  2. (2)

    A retail customer means, in relation to a member of the conduct rules staff of a firm, a retail customer of that firm for the purposes of PRIN.

COCON 2.4.4G

1A person may be a retail customer of a firm for the purposes of Rule 6 even though that person is not a direct client of that firm and there is no direct relationship between them. This is in particular the effect of paragraphs (2)(f) and (2)(g) of the definition of retail customer.

Obligations: Introduction

COCON 2.4.5R
  1. (1)

    1COCON 2.4.6R to COCON 2.4.8R exhaust what is required by Rule 6.

  2. (2)

    Any reference in the Handbook to the obligations on a member of a firm’s conduct rules staff under Rule 6 is a reference to the requirements imposed by COCON 2.4.6R to COCON 2.4.8R.

Obligations: Rules

COCON 2.4.6R
  1. (1)

    1You must act in good faith towards retail customers.

  2. (2)

    Acting in good faith is a standard of conduct characterised by honesty, fair and open dealing and acting consistently with the reasonable expectations of retail customers.

COCON 2.4.7R

1You must avoid causing foreseeable harm to retail customers.

COCON 2.4.8R

1You must enable and support retail customers to pursue their financial objectives.

Reasonable application of Individual Conduct Rule 6

COCON 2.4.9R

1The obligations in Rule 6 must be interpreted in accordance with the standard that could reasonably be expected of a prudent person subject to COCON (as set out in COCON 1 (Application)):

  1. (1)

    carrying on the same activity in relation to the same product; and

  2. (2)

    taking appropriate account of the needs and characteristics of retail customers based on the needs and characteristics of retail customers in the relevant target market or of individual retail customers as the context requires.

References to Principle 12

COCON 2.4.10R

1Any reference in COCON to Principle 12 must be read in accordance with PRIN 2A.1.1R and PRIN 2A.1.2R (Application) and PRIN 2A.2.26R (Interaction between Principle 12 and cross-cutting obligations).