The Act does not prescribe what the FCA should consider when determining fitness and suitability. The FCA will consider a number of factors when assessing a person's ability and suitability to perform a particular regulated function, as detailed in ■FIT 2 (Key assessment criteria). The FCA would expect firms that need to assess the fitness and suitability of staff assessed under the FIT to consider essentially the same factors as set out in ■FIT 2.
In assessing suitability and appropriateness, the FCA will also consider the activities of the firm for which the controlled function is or will be. carried out, the license held by that firm and the markets in which it operates. The criteria listed in■FIT 2.1 to■FIT 2.3 are guidelines and will apply in general terms when the FCA is determining a person's fitness and suitability. A firm that assesses the fitness and suitability of staff being assessed under the FIT should be guided by.
A firm assessing the continuing fitness and propriety of an approved person must notify the FCA under section 63(2A) of the Act if it considers that there are grounds on which the FCA may withdraw its approval (see■ SUP 10C. 14.24R). In relation to a firm assessing the continued fitness and propriety of an approved person under section 63(2A) of the Act during a temporary absence, see the guidance at ■SUP 10C.14.5GG. A firm assessing the continued fitness and suitability of staff assessed under FIT must assess the role the individual is actually performing at the time of the assessment.
During the application process for a controlled function, the FCA may discuss the candidate's suitability and suitability assessment informally with the applying firm and may keep any notes of these discussions.
The Fit and Proper test for Approved Persons
Main assessment criteria
- Honesty, integrity and reputation
- Competence and capability
- Financial soundness
In determining an individual's honesty, integrity and reputation, the FCA will take into account all relevant matters, including but not limited to those set out in ■FIT 2.1.3 G that may have occurred in the United Kingdom or elsewhere. The FCA must be made aware of these matters (see ■SUP 10A.14.17 Rand■SUP 10C.14.18R), but will consider the circumstances only where relevant to the requirements and standards of the regulatory system. For example, under■FIT 2.1.3 G(1), conviction for a criminal offense does not automatically mean that an application will be rejected.
The FCA considers each candidate's application on a case-by-case basis, taking into account the seriousness and circumstances of the offence, the explanation given by the convicted person, the relevance of the offense to. A company determining the honesty, integrity and reputation of staff assessed under the FIT should consider all relevant matters, including those described in ■FIT 2.1.3G, which may have arisen either in the UK or elsewhere. If a staff member assessed under the FIT has been convicted of a criminal offence, the company should consider the seriousness and circumstances of the offence, the explanation given by the person concerned, the relevance of the offense to the proposed role, the passage of time since the offense was committed and evidence of the individual's rehabilitation.
In considering the matters in ■FIT 2.1.1 G, the FCA will consider whether the individual's reputation could adversely affect the company for which the controlled function is or will be performed and that of the individual. When assessing the reputation of personnel being assessed under■FIT 2.1.1AGa, an enterprise should consider whether that individual's reputation could adversely affect the enterprise for which the position is performed and the responsibilities of the person. Rehabilitation of Offenders (Northern Ireland) Order 1978 (if applicable), all reversed convictions; particular consideration will be given to offenses of dishonesty, fraud, financial crimes or any offense under any law relating to corporations, building societies, industrial and utility associations, credit unions, friendly associations, banking, other financial services, insolvency, consumer credit companies, insurance, consumer protection , money laundering, market manipulation and insider trading whether or not in the United Kingdom;.
In determining a person's competence and capacity, the FCA will take into account all relevant matters in accordance with ■FIT 1.1.2G, including but not limited to:. In determining a person's competence and ability to perform an FCA-designated senior management function or an FCA certification function, a firm should, in accordance with ■FIT 1.1.2G, consider all relevant matters, including but not limited to:. The FCA will only consider this in relation to the person's continued ability to perform the particular regulated function for which they are or will be employed.
The FCA expects a firm determining the competence and capacity of staff assessed under the FIT to consider convictions, dismissals and. suspensions from employment due to drug or alcohol abuse or other abuse only in relation to an individual's continued ability to perform the particular. FCA designated senior management function or an FCA certification function for which the person is or is to be employed. In assessing a person's financial soundness, the FCA will take into account, and a firm should also take into account, all factors including, but not limited to:.
The fact that a person has limited financial means will not in itself affect their suitability to perform a controlled function. The FCA would expect a firm to take a similar view in determining whether staff assessed under FIT are fit and proper.
FIT TP 1
Transitional provisions
Record keeping requirements
Notification requirements
Fees and other required payments
Powers exercised
G [deleted]
Rights of action for damages
Rules that can be waived