The FSA will not push ahead with an ethical code just for investment advisers and has confirmed it will focus on key individuals within firms.
In its Competence and Ethics consultation paper published today the regulator said it will apply its ethical code to all sectors of the industry and that limiting the code to certain individuals would be "misleading".
"Ethics apply at all levels, so attempts to ring fence certain behaviours or individuals may give a misleading impression that others do not have to follow ethical behaviours, which would be an unsatisfactory outcome," it said.
The regulator also said its APER code of regulatory practice will focus on key individuals within firms.
"The impact of this will result in more individuals being subject to APER than before so the need to ensure our expectations are clear is paramount," the FSA says.
The FSA adds it will establish two additional rules to its current seven-principle APER code - paying due regard to the interests of a customer and a clamp down on "deliberate acts, omissions or business practices that could be reasonably expected to cause consumer detriment."
The additional rules implies a further tightening of its regulatory machine and a renewed emphasis on the consumer.
