1The FCA believes that industry codes of conduct have an important part to play in a principles-based regulatory environment. Individuals may choose to follow, and firms have regard to, such codes as a means of seeking to meet the FCA’s requirements to conform to proper standards of market conduct. This will be true especially where industry codes of conduct have been ‘recognised’ by the FCA. DEPP 6.2.1G(4A) confirms that behaviour that is in line with an FCA-recognised industry code will tend to indicate compliance, in carrying out unregulated activities, with applicable FCA rules that reference ‘proper standards of market conduct’.
1Equally, however, FCA-recognised industry codes, and codes that have not been recognised, are not mandatory. The FCA does not regard adherence to industry or market codes as the only means of complying with applicable FCA rules. Rather, they may provide an articulation of proper standards of market conduct which meets the FCA’s requirements.