Do the FCA’s Principles for Business require a firm to give the best advice?

The Financial Conduct Authority’s Principles for Business set broader high-level standards than the detailed COBS rules. The COBS rules only apply the principle to act in the client’s best interests to advised sales whereas, under MiFID, this principle is applicable to both advised and non-advised sales. Although the FCA’s Principles for Business do not state explicitly that a firm must act in its client’s best interests, a number of high-level principles could be interpreted as having a
higher standard of care such that the best interests principle is an intrinsic component. This may mean that if a firm does not give the best advice, it may well be in conflict withthe FCA’s Principles for Business and MiFID.