The Principles are expressed in general terms. They are designed to be sensitive to individual circumstances and to be proportionate. Their practical implications for firms' conduct, organisation and resources will depend on the size of the firm and the business it undertakes. The Principles do not require small firms to act or be treated as if they were large.
However, being ready, willing and organised to abide by the Principles is a critical factor in applications for authorisation and whether a credit union is continuing to be fit and proper. Therefore, breaching a Principle makes a credit union liable to the FSA's disciplinary sanctions. The full provisions of how the FSA will use its powers in support of its enforcement functions under the Act are set out in ENF 2. The FSA will be proportionate in the use of its powers.