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FCA / SMCR guide · Respond to an FCA COCON breach allegation

FCA conduct rules allegations against individuals

Conduct Rules apply differently according to role and facts. A response should identify the exact rule, alleged conduct and period, then distinguish the firm's certification or disciplinary decision from any FCA enforcement action.

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What this means

Start with the exact decision in front of you.

Conduct Rules apply differently according to role and facts. A response should identify the exact rule, alleged conduct and period, then distinguish the firm's certification or disciplinary decision from any FCA enforcement action.

Immediate priorities

Organise the position before responding.

01

Match each factual allegation to the cited Conduct Rule

02

Collect contemporaneous decisions, advice and escalation records

03

Check what the firm has reported and on what basis

Detailed guidance

The procedure, evidence and possible route from here.

01

Identify the rule and its application

COCON contains individual conduct rules and additional rules for Senior Managers. Determine which rule applied to the person, role and activity at the relevant time. A certification employee, Senior Manager and other Conduct Rules staff member may have different responsibilities. The allegation should specify the conduct said to breach the rule rather than rest on an outcome, job title or broad criticism that the individual failed to act properly.

Create a table separating each alleged act or omission, the cited rule, the evidence and the individual's position. Pay attention to territorial and role scope, handovers and periods of absence. An internal disciplinary finding may explain why the firm reported a breach, but the FCA can undertake its own assessment. Check whether the report accurately states the facts, outcome date and rule rather than adopting an untested description from another process.

  • Confirm COCON applied to the person and conduct
  • Match each particular to one cited rule
  • Obtain the firm's report and underlying findings

02

Analyse knowledge, care and escalation

Different Conduct Rules focus on integrity, due skill and care, cooperation, customer interests, market conduct and management responsibilities. Evidence must be tailored accordingly. For a care allegation, identify the information and standard reasonably available at the time. For integrity or cooperation, examine communications, disclosure choices and candour directly. Avoid using evidence of later remediation as a substitute for answering what the individual actually did.

Governance material may show that the individual raised a concern, relied on assurance or lacked authority to implement a change. It may also show missed warnings or inadequate follow-up. Present the complete sequence, including documents that cut against the preferred account. Selective excerpts can be damaging when context later emerges. The useful question is not whether the outcome was poor, but whether the person's conduct met the specific rule in the circumstances.

  • Identify the contemporaneous standard and information
  • Show authority, escalation and follow-up accurately
  • Address adverse documents in their full context

03

Understand reporting and consequences

Firms have duties concerning Conduct Rules breach notifications and regulatory references. A notification is not the same as an FCA disciplinary finding, yet it can affect future employment and certification. Check what the firm recorded, when the decision was made and whether the individual was given the underlying reasons. Inaccurate reference information should be challenged through the relevant route with clear supporting evidence.

If the FCA pursues disciplinary action, potential outcomes may include a financial penalty or public censure, and the same facts may prompt fitness, approval or prohibition consideration. Keep those questions distinct. A rule breach does not automatically determine the scope of a prohibition. Evidence about seriousness, repetition, cooperation, remediation and present role can be relevant later, but it should not be used to concede a disputed underlying fact.

  • Track notification and reference consequences
  • Separate a firm finding from FCA enforcement
  • Address any approval or prohibition proposal independently

Key questions

Keep the analysis tied to this stage.

Question 01

Whether the rule applied to the person and activity

Question 02

Whether the alleged conduct breached that rule

Question 03

What action is proportionate if a breach is established

Independent legal help

Advice is provided only by the regulated firm that accepts a matter.

Common questions

Clarifying the route without assuming the outcome.

Does my employer's Conduct Rules finding bind the FCA?

No. It may be important evidence and can trigger reporting, but the FCA applies its own powers and decision process.

Can a Conduct Rules breach affect a regulatory reference?

Yes. Firms have regulatory-reference duties, and accurate breach information can affect later roles. The wording and source decision should be checked carefully.

Connected guidance

Continue through the topic map.

Use the hub for the full sequence or choose the connected route that matches the notice.

Official sources

Check the material for this question.

Sources checked 19 September 2026. Rules change, so compare the current notice and linked official material and tell the operator if a citation or summary needs correction.

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