A broker argues that a sales practice is acceptable because no specific MCOB rule forbids it. The FCA disagrees. On what basis can the FCA act?
The FCA's approach is principles-based: the Principles for Businesses (PRIN 2.1.1R), including Principle 6 and Principle 12 (the Consumer Duty, PRIN 2A), are rules in their own right, and breaching a Principle can lead to disciplinary action without breach of any detailed rule (PRIN 1.1.7G). Detailed rules support the Principles; they do not mark the outer limit of acceptable behaviour.
Believing anything not expressly banned by a detailed rule is allowed.
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