When is the Approved Persons regime relevant?

  • When a firm submits an application for an employee or other person to become an Approved Person (where a firm is applying for authorisation first time -this is called applying for Part IV permission as set out in FSMA- or where it is already fully authorised and is recruiting more personnel)
  • For the purposes of assessing the continuing fitness and propriety of Approved Persons (where disciplinary issues have arisen)
  • Where Approved Persons are leaving the firm (particularly in circumstances of misconduct)

Approved Person status depends on the individual’s position within an authorised firm and is not transferable. So, when that person moves jobs, the new employers must apply again to get the individual approved to perform controlled functions. The individual is not “authorised” in his/her own right.