What does PRIN 7 emphasize regarding communication with clients?

PRIN 7 stresses the importance of communication with clients being clear, fair, and not misleading because it serves as a fundamental principle of good conduct in the financial services sector. This principle is designed to ensure that clients have a full understanding of the information provided to them, which fosters transparency and trust between clients and financial service providers. Such clarity prevents potential misunderstandings or misinterpretations, which can lead to dissatisfaction or disputes.

Clear, fair, and not misleading communication is crucial in upholding the integrity of financial services as it aligns with the expectations of the Financial Conduct Authority (FCA) around treating customers fairly (TCF). This principle reinforces the idea that clients should not be misled about the nature of products or services offered to them, ensuring that they are well-informed before making decisions. By prioritizing clear communication, firms can enhance client confidence and help clients make informed choices that suit their financial needs and objectives.

The focus on communication also indirectly relates to other considerations like managing conflicts of interest and the care of clients' assets. However, those aspects are not the specific emphasis of PRIN 7, which is particularly centered on how information is conveyed to clients.