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Jurisdiction(s):
United Kingdom
Related legal acts
Key definition
Interest definition

What does Interest mean? Interest is the additional sum payable for the time‑value of money: the amount a borrower pays a lender for using money, the return on debt‑type investments, and the sum awarded for being kept out of funds in litigation. Entitlement arises by: - Contract (contractual interest), including default interest, fixed or floating rates (for example, over base rate or SONIA), and simple or compound interest. Clauses must be clearly drafted and not operate as an unlawful penalty or unfair term. - Statute (statutory interest), for example late payment interest on commercial debts under the Late Payment of Commercial Debts (Interest) Act...

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Conflicts of interest in UK financial services: FCA SYSC 10 duties on identification, management and disclosure; Chinese walls; insurance-based investment products; PFOF; and forthcoming reforms (including CP 25/36)

Practice notes
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This Practice Note offers overarching guidance on conflicts of Interest obligations contained in Chapter 10 of the Senior Management Arrangements, Systems and Controls sourcebook within the Financial Conduct Authority (FCA) Handbook (SYSC 10), in summary, and additionally addresses measures that will supersede Commission Delegated Assimilated Regulation (EU) 2017/565 (the UK MiFID II Organisational Regulation) upon its repeal on 23 October 2025.

Which firms do the conflicts of interest rules apply to?

The following provisions in SYSC 10 are applicable to so-called common platform firms (banks, building societies, designated investment firms and MIFIDPRU investment firms) and are listed below:

  • SYSC 10.1.-4R
  • SYSC 10.1.-3R
  • SYSC 10.1.1R
  • SYSC 10.1.2G
  • SYSC 10.1.3R
  • SYSC 10.1.4R
  • SYSC 10.1.5G
  • SYSC 10.1.6R
  • SYSC 10.1.6AAR
  • SYSC 10.1.7R
  • SYSC 10.1.8R
  • SYSC 10.1.9G
  • SYSC 10.1.10R
  • SYSC 10.1.11R
  • SYSC 10.1.11ABR
  • SYSC 10.1.12G

SYSC 10 extends to a firm undertaking funeral plan distribution activities. SYSC 10 also applies to a firm carrying on insurance distribution activities. For the detailed application of SYSC 10 to other firms beyond those mentioned, see SYSC 1 Annex 1, Tables A, B and C.

What is a conflict of interest?

A conflict of interest occurs where there is a clash between...

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Web page updated on 21/05/2026

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