What are the standards of conduct expected of Approved Persons?

The (7) Statements of Principle and Code of Practice for Approved Persons set out the standards of behaviour and guidelines that the FCA expects of approved persons. Additionally, the Fit and Proper test for Approved Persons sets out the FCA’s minimum standards for becoming and remaining an Approved Person.

Approval criteria:

  • Honesty, integrity and reputation
  • Competence and capability
  • Financial soundness

When applying for Approved Person status for the first time an individual must disclose information including whether they have any criminal convictions, county court judgements, have been the subject of an investigation into allegations of misconduct, etc. It is important that individuals applying for an Approved Person status have an open and frank dialogue with the regulator and if in doubt seek independent advice. The FCA will not normally require the candidate to supply a statement of assets or liabilities. The fact that a person may be of limited financial means will not, in itself, affect his suitability to perform a controlled function.

Matters taken into account by the FCA when assessing “honesty, integrity and reputation” include:

  • criminal offences
  • adverse findings or any settlement in civil proceedings
  • involvement in investigations or disciplinary proceedings
  • contraventions of FCA rules
  • concern in the management, of a business that has gone into insolvency, liquidation or administration
  • justified complaints against the person
  • dismissals, including agreed resignations
  • disqualification from acting as a director or disqualification from acting in any managerial capacity
  • truthfulness and frankness in dealings with any regulators