The Financial Responsibility Principle (FRP) was introduced as part of the Supplier Licensing Review (SLR) reforms. The FRP acts as an over-arching obligation – supporting one of the key aims of the SLR by ensuring suppliers act in a more financially responsible manner and take steps to bear an appropriate share of their risk. Alongside the SLR decision we consulted upon draft guidance on the FRP.
We are now publishing the final guidance for the FRP. The guidance provides information to support suppliers in identifying appropriate actions to take in meeting their obligations under the principle.