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Application provision

1.1 Unless otherwise stated, this Part applies to:

2.1

07/03/2016

A firm must ensure that all persons who perform key functions are at all times fit and proper persons.

2.2

07/03/2016

In deciding whether a person is fit and proper pursuant to 2.1, a firm must be satisfied that the person:

  1. (1) has the personal characteristics (including being of good repute and integrity);
  2. (2) possesses the level of competence, knowledge and experience;
  3. (3) has the qualifications; and
  4. (4) has undergone or is undergoing all training,

required to enable such person to perform his or her key function effectively and in accordance with any relevant regulatory requirements, including those under the regulatory system, and to enable sound and prudent management of the firm.

2.3

07/03/2016

Before deciding, and in considering on an on-going basis, whether a person is fit and proper pursuant to 2.1 and 2.2, a firm must consider:

  1. (1) the person's past business conduct; and
  2. (2) whether the person performs his or her key functions in accordance with the relevant conduct standards specified in Large Non-Solvency II Firms - Conduct Standards 3.

2.4

07/03/2016

In deciding whether a person (P) is fit and proper to be appointed as a senior insurance management function holder or a notified non-executive director, a firm must:

  1. (1) obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under the Police Act 1997 and related subordinated legislation of the UK or any part of the UK;
  2. (2) if P has lived or worked outside the UK for a material time in the previous five years, obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under equivalent overseas legislation; and
  3. (3) request, and have regard to, such information.

2.5

24/07/2017

  1. (1) Before deciding whether a person (P) is fit and proper to be appointed as a key function holder, a firm must take reasonable steps to obtain appropriate references covering the past six years from the following:
    1. (a) each FCA-authorised person and PRA-authorised person that is, or was:
      1. (i) P’s current or former employer; or 
      2. (ii) an organisation (not falling within (i)) at which P is currently serving, or has served, as a key function holder, approved person, non-executive director, notified non-executive director or credit union non-executive director or performed, or is currently performing, a certification function;   
    2. (b) P’s other current and former employers; and 
    3. (c) other organisations at which P served as, or is currently, a non-executive director.   
  2. (2) A firm (A) is not required to request references from an employer of P or any organisation referred to in (1)(a) to (c) (such employer or organisation, B) where:
    1. (a) A and B are members of the same group; and
    2. (b) there are adequate arrangements in place under which A has access to all information sources to which B has access to the extent necessary were B giving a reference in accordance with this Part.
  3.       If A has access to only some of the information in 2.5(2)(b), A may ask for a reference that only covers the information to which A does not have access. To the extent that A does not request a reference in the circumstances set out in this (2), A must access and obtain the relevant information. 
  4. (3) When making a senior insurance management approval application, a firm must take reasonable steps to obtain references in accordance with (1) and (2):
    1. (a) no later than one month before the end of the application period set out in section 61 of FSMA; or
    2. (b) where a request by a firm for a reference to an employer or organisation would require the firm, the employer, the organisation or any other person to make a mandatory disclosure prior to P disclosing to its current employer or organisation, as the case may be, that such application has been made, before the end of the application period set out in in section 61 of FSMA.

 

2.6

24/07/2017

  1. (1) Where a firm (A) seeks to obtain a reference pursuant to 2.5, A must request that the organisation giving the reference (B) discloses all matters of which B is aware that B reasonably considers to be relevant to the assessment of that person's fitness and propriety.
  2. (2) A must also request that, if B is a full scope regulatory reference firm, B discloses the information referred to in the regulatory reference template.

2.7

07/03/2017

If a firm previously obtained the information required by 2.4 to 2.6 when it determined that a key function holder was fit and proper for the purposes of this Part, and the firm engages that person for a continuous period of time, the firm is not required to comply with 2.4 to 2.6 again in respect of any subsequent key function appointments at the same firm within that continuous period.