The FCA established a code recognition scheme in 2018 to recognise industry codes for unregulated financial markets and activities. Behaviour that's in line with an FCA-recognised industry code will generally indicate that you're meeting your obligation to observe 'proper standards of market conduct' in relation to unregulated activities.

Industry codes are not mandatory and are just one way of complying with the requirement to observe proper standards of market conduct. It may be possible to observe proper standards of market conduct in other ways.

The FCA is extending its recognition of the following codes for a further 3-year period: 

• FX Global Code which is maintained by the Global Foreign Exchange Committee.
• UK Money Markets Code which is maintained by the Bank of England's Money Markets Committee.
• Global Precious Metals Code which is maintained by the London Bullion Market Association.

In 2023, the FCA recognised the Lending Standards Board Standards of Lending Practice for business customers.

The FCA will only recognise codes if they meet certain criteria. The code must advance the FCA's strategic objective to ensure that the relevant markets function well, and one or more of its three operational objectives to:

• secure an appropriate degree of protection for consumers
• protect and enhance the integrity of the UK financial system
• promote effective competition in the interests of consumers

The code must also:

• focus on market activities and issues that aren't already covered by regulatory rules;
• represent an effort to define, set or raise standards (taking into account the views of relevant stakeholders during its development);
• have been subject to scrutiny that has allowed alternative views to those of the authors to be expressed and taken into consideration. This may include firms, public authorities, consumer groups and academics, as appropriate;
• be publicly available and free for all parties who wish to use it; and
• not condone any practices that the FCA has previously objected to, or which it would not expect to condone

Codes should aim to:

• be widely supported, clear, practical and unambiguous statements of the proper standard of market conduct, covering significant conduct issues that a reader would expect to see;
• set standards that are broadly comparable in substance or intended outcomes with those that exist in other comparable financial markets; and
• encapsulate what would be considered proper standards of market conduct among knowledgeable, experienced and reasonable market participants representing their industry and profession.