1.3. Fitness and Propriety

(FSMA)

and ensure that its affairs are conducted soundly and prudently.

Part of the SM&CR (1 of 3)

And are responsible for the firm’s regulatory obligations. Individuals will be approved by the regulator.

2cz

UK incorporated banks, building societies, credit unions and UK-incorporated investment firms and insurance companies.

Authorised person must have accepted responsibility for the conduct of regulated activities in writing.

Senior Managers and Certification Regime

Subject to ‘baseline’ SM/CR requirements (the majority) | Subject to fewer requirements. | Subject to significantly greater requirements.

These individuals are required to comply with the FCA’s Statements of Principle and Code of Practice for Approved Persons (APER).

generally the individuals who manage the direction and implement the strategy of the firm.

senior management functions

A prescribed responsibility should, in theory, correlate to a SMF-holder’s areas of responsibility for which they could be held accountable.

The candidate completes Form A, which is submitted to the regulator by the firm. Prior to 'Form A' being submitted t a firm must take all reasonable steps to obtain a regulatory reference within the past six years.

However, if the regulators consider that they need further information they stop the "statutory clock".

Captured individuals’ key duties will be recorded as part of the individual statement of responsibilities.

The purpose is to provide enhanced transparency of individual accountability

SM&CR

and Other Overall Responsibility function.

P r o v i d e o n l y 2

Chair of the Remuneration Committee function.| Senior Independent Director function.

SM&CR

Core Firm: Firms that have a ‘baseline’ of SM/CR requirements applied. | Enhanced Firm: small proportion of solo-regulated firms that apply extra rules.

Application of SMFs to Firms

CF8 = Apportionment and Oversight Function w starym Approved Persons Regime (APER).

Application of SMFs to Firms

Compliance Oversight

Application of SMFs to Firms

Compliance Oversight | Money Laundering Reporting Officer | Limited Scope Function

Application of SMFs to Firms

Compliance Oversight | Money Laundering Reporting Officer

Application of SMFs to Firms

Limited Scope Function

Application of SMFs to Firms | 7 but P r o v i d e o n l y 2

Chief Executive | Executive Director | Chair | Compliance Oversight | Money Laundering Reporting Officer (MLRO) | Other Overall responsibility (Enhanced Firms only). | Partner

consumer risks should be a key focus for internal audit.

Rather firms make an assessment that they are deemed ‘fit and proper’ to perform their role.

The Certification Regime (CR)

individuals who are subject to the Remuneration Code – 'Code staff'

5 >SSCCB<

*UK or by a third country bank, and carries out branch activity as defined by the FCA.

Where individuals are performing multiple certification functions – fitness and propriety must be assessed for each certification function.

Rule 1 | Rule 2 | Rule 3 | Rule 4 | Rule 5

Rule 4 will cease to apply to individuals where the new rule Rule 6 applies. Rule 6 will not apply for firms. requirements, therefore, ‘Rule 4’ will continue to apply for those firms. || Rule 6: You must act to deliver good outcomes for retail customers.

1) You must to ensure that the business is controlled effectively. 2) Business complies with relevant requirements and standards. 3) Ensure that delegation of your responsibilities is to an appropriate person. 4) Disclose any information to FCA and PRA.

Senior Management Arrangement, Systems and Controls

SYSC 24: Senior managers and certification regime: Allocation of prescribed responsibilities

During the application process, the regulator may discuss assessing the candidate’s fitness and propriety with the firm and may retain notes of such discussions.

SMFs

If sucessful, Part 4A permission granted to the firm.

Fit and Proper Test (FIT) | P r o v i d e a t l e a s t 3

P r o v i d e a t l e a s t 3

Fit and Proper Test (FIT) | 3

Fit and Proper Test (FIT) | 2

So that customers can make informed decisions about products and services.

1) You must to ensure that the business is controlled effectively. 2) Business complies with relevant requirements and standards. 3) Ensure that delegation of your responsibilities is to an appropriate person. 4) Disclose any information to FCA and PRA.

Conduct Rules for Senior Managers

1) You must to ensure that the business is controlled effectively. 2) Business complies with relevant requirements and standards. 3) Ensure that delegation of your responsibilities is to an appropriate person. 4) Disclose any information to FCA and PRA.

1) You must to ensure that the business is controlled effectively. 2) Business complies with relevant requirements and standards. 3) Ensure that delegation of your responsibilities is to an appropriate person. 4) Disclose any information to FCA and PRA.

Conduct Rules for Senior Managers

1) You must to ensure that the business is controlled effectively. 2) Business complies with relevant requirements and standards. 3) Ensure that delegation of your responsibilities is to an appropriate person. 4) Disclose any information to FCA and PRA.

If the answer is ‘Yes’ there are a number of additional considerations.Eg. If so, will my activities be, or include, regulated activities? on in the United Kingdom?

also: the existence of a commercial element, the scale of the activity.

Dealing in investments as principal. | Dealing in investments as agent. | Safeguarding and administering investments. | Arranging deals in investments.