Poll
Who actually constitutes as ‘fit and proper’?
With the FCA authorisation process in full swing for some, many industry members have come to question.
As a result, Loan Talk decided to investigate. A Freedom of Information request to the Financial Conduct Authority (FCA) asked the regulator to clarify what is required of firms and individuals looking to become licensed and labelled as fit and proper.
The FOI request specified that individuals associated with firms who are carrying out certain “controlled functions” have to meet standards set out in the fit and proper test (FIT) section of the handbook.
The requirements to be authorised in this area are set out in the FCA handbook, which assesses fitness and propriety of a person to perform a particular controlled function. The ability of firms to comply with all relevant rules is part of the threshold conditions test.
According to the handbook, the most important considerations will be the person’s honesty, integrity and reputation, as well as their competence, capability and financial soundness.
To assess a person’s honesty, integrity and reputation, the regulator will look at several criteria, including whether the person has been convicted of a criminal offence, whether they have been subject to any adverse findings in civil court proceedings, or are subject to investigation by other regulatory authorities. It will also consider previous dismissals and companies that have become insolvent.
The FIT will also look at an individual’s financial soundness through their debt, and whether or not the person is subject to any bankruptcy restrictions.
Competence and capability is assessed on whether a person satisfies relevant FCA training, competence and experience, and whether the person has adequate time to perform their functions and meet their responsibilities.
However, the handbook does say that “it would be impossible to produce a definitive list of all the matters which would be relevant to a particular determination.”
It goes on to state that if a matter that suggests the person may not be fit and proper comes to the appropriate regulator’s attention, the regulator will take into account how relevant and important the matter is.
During the process of applying for licensing, the regulator may discuss the assessment of the candidate’s fitness and propriety informally with the firm making the application, and keep hold of notes on this.
The handbook also takes in to account the activities of a firm for which the controlled function is to be performed, the permission held by the firm and the markets within which it operates.
The remainder of the handbook includes rules and guidance for all firms. Of particular relevance for credit firms is the consumer credit sourcebook (CONC), but there are also other relevant sections of the handbook, including the supervision (SUP) and dispute resolution: complaints (DISP) sections.
For more information on the FIT test, please visit http://fshandbook.info/FS/html/FCA/FIT.
With the FCA authorisation process in full swing for some, many industry members have come to question….
I well omega replica watches removed them, in I below. Those companions call fake rolex watches sounded like a bird chirp. Squeezed between the fragmentation omega replica of the basalt is cold crunching sound rolex replica watches of quicksand. Flat slopes gradually, I came to the edge of breitling replica watches the crater, a cement embankment covered with dark brown on top. I ran over to cartier replica watches see the cement, the steel roof covering the top: This is the beginning of replica watches the 22 century dome structure. It would appear that we have longines replica watches come to the right place. From my u boat replica watches current position.