What is the primary responsibility of firms dealing with retail clients and professional clients as outlined in COBS?

The primary responsibility of firms dealing with retail clients and professional clients, as outlined in the Conduct of Business Sourcebook (COBS), is to act honestly, fairly, and professionally. This principle is fundamental to ensuring that client interests are protected and that the firm maintains high standards of conduct in its dealings.

Acting honestly means that firms must provide accurate information and disclosures to clients, ensuring that there are no misleading claims about products or services. Fairness involves treating clients equitably, taking into account their individual needs and circumstances, and not putting the firm's interests ahead of the client's. Acting professionally encompasses maintaining competence, integrity, and respect for clients, as well as adhering to regulatory standards and ethical guidelines.

This principle aligns with the broader regulatory goals of protecting consumers and maintaining trust in the financial services industry. Focusing solely on maximizing profits or minimizing regulatory obligations contradicts this responsibility, as it could lead to compromised service quality and client welfare. Similarly, prioritizing company reputation above client interests undermines the core objective of fostering a client-centric approach, which is essential for long-term success and compliance in the industry.