Which principle guides firms in treating customers in FCA's approach?

The principle that guides firms in treating customers within the FCA's approach focuses on ensuring customer dealings are in their best interests. This principle emphasizes the importance of fairness and transparency in financial services, requiring firms to prioritize the needs and interests of their customers in all aspects of their operations.

By advocating for customer-centric practices, the FCA aims to build trust in the financial markets and protect consumers from unfair treatment. This includes ensuring that products and services offered are suitable for the customers’ needs and that customers are provided with clear information to make informed decisions. Ensuring that customers’ best interests are at the heart of business practices is crucial for maintaining integrity within the financial sector.

This approach not only fosters positive customer outcomes but also promotes competition among firms to serve their customers effectively, ultimately enhancing the overall quality of financial services available in the market.