Which FCA principle requires firms to conduct business with integrity?

• A. Observe proper market conduct standards
• B. Consumer duty: firm must act to deliver good outcomes for retail customers
• C. Conduct business with integrity
• D. Manage conflicts of interest fairly

Answer: (C)

The fundamental idea being tested is that firms must act with integrity. This FCA principle sets honesty, fairness, and transparency as the baseline for all business conduct—treating clients truthfully, avoiding misrepresentation, and making decisions that are fair and in customers’ best interests. Acting with integrity underpins how a firm communicates, sells products, and handles information.

The other options refer to related concepts like market conduct norms, delivering good outcomes for retail customers, or managing conflicts of interest, but the specific named principle that captures the requirement to operate with honesty and fairness is the one that says conduct business with integrity.