Code of Practice

The NACFB launched its revised Code of Practice on the 8th November at our 2018 AGM. The streamlined Code is now principle-based rather than prescriptive to ensure a more pragmatic approach in its application with a focused on outcomes for clients, rather than on process. The change also reflects the fact that our regulators also operate ‘principle-based’ regulation.

The NACFB Code of Practice lays out the framework under which Members and Member firms conduct their business. The Code applies to all Members of the Association.

The previous Code of Practice contained a set of generic rules, processes and procedures with some for specific industry sectors. As it stood, within the existing framework, the Association felt that there was not enough transparency for stakeholders within the Code.

The revised Code has undergone significant revisions one of which is to remove processes and procedures from the document; these now sit separately and are clearer and more objective. A further benefit is that the Code has been consolidated from twenty-one pages to just eight – ensuring it becomes a more practical working document.

The Code, together with the NACFB Minimum Standards document, sets out and promotes the standards of compliance and professionalism that Members must meet in their business activities. NACFB Members commit to treating their clients fairly and responsibly, and to operating with integrity at all times. They also commit to being timely, transparent and unambiguous in their business dealings.

The commitments are designed to sit alongside the FCA Principles for Business and the regulations set out by the Information Commissioners Office (ICO).

The Code is not intended to sit within any regulatory hierarchy and there should be no conflict between the NACFB framework and any existing statutory regulatory regime – if there is, however, the latter will always prevail.

Importantly, the Code is there to represent to clients and other stakeholders that in dealing with NACFB brokers you should expect to be dealt with in a way that matches that of any other professional service. You can download the 2018 NACFB Code of Practice below.