Published May 2026 · 5 min read
There are 12 FCA Principles for Businesses.
Principles 1–11 have applied since the FCA's formation. Principle 12 — the Consumer Duty — came into force on 31 July 2023.
This is one of the questions that catches candidates out, partly because many revision materials were written before 2023 and still refer to eleven Principles. The correct answer for the CISI UK Financial Regulation exam is twelve. For the full explanation of all 12, including how each one is tested, see FCA Principles for Businesses explained.
The original eleven Principles cover integrity, skill and care, management and control, financial prudence, market conduct, customers' interests, communications with clients, conflicts of interest, suitability, client assets, and relations with regulators. These apply to all FCA-authorised firms across all their regulated activities.
Principle 12 states: "A firm must act to deliver good outcomes for retail customers."
It was introduced as part of the FCA's Consumer Duty package (PS22/9) and came into force on 31 July 2023 for open products and services. It applies specifically to retail customer-facing activity — not to wholesale or professional client business.
Principle 12 does not simply add a new obligation on top of the existing eleven. Where the Consumer Duty applies, Principle 12 displaces Principles 6 (Customers' Interests) and 7 (Communications with Clients).
Principles 6 and 7 still exist in the FCA Handbook. They continue to apply in contexts where Consumer Duty does not reach — wholesale markets, professional client business, and any activity outside the Consumer Duty's scope. But for in-scope retail customer activity, Principle 12 is the operative standard.
There are 12 Principles — not 11.
Principle 12 is the Consumer Duty: 'a firm must act to deliver good outcomes for retail customers.'
Consumer Duty applies to retail customer-facing activity. It does not apply to wholesale or professional client business.
Where Consumer Duty applies, Principle 12 displaces Principles 6 and 7. It does not sit alongside them.
The four Consumer Duty outcomes are: products and services, price and value, consumer understanding, and consumer support.
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