FSA - approved person check, what does it entail?

[wackadu]

Is this just a check on your credit history and criminal record?

Or is there more to it than that?

[DaveB]

Is this just a check on your credit history and criminal record?

Or is there more to it than that?

There is a lot more to it than that.

Approved Persons

(FSA Supervision and The Fit and Proper Test for Approved Persons)

The FSMA provides for a single regime for the individual approval of individuals who carry on specified controlled functions within an authorised firm.

The FSA has identified 27 controlled functions. They are deemed to be functions that exert significant influence over the firm’s affairs or deal with customers’ property.

The regime applies to employees of, and contractors used by, authorised firms. The regime involves statements of principle, supported by a code of conduct, specifically applicable to approved individuals and backed by individual sanctions.

A person is not permitted to perform a controlled function without prior approval from the FSA. If a person is approved for a controlled function this does not bring all their activities within the controlled functions, or make those activities subject to the Statements of Principle. Human Resources and Compliance will confirm whether individuals require approval by the FSAwhen they are recruited to the firm or take up a new role. Any changes to a role must be discussed with Human Resources as this may require an individual to be approved or ceasing approval. Human Resources will contact individuals who need approval and will oversee the preparation of the application forms. The Compliance Department will make all the appropriate returns and notifications to the FSA.

The FSA and LGIM(H) are able to withdraw an individual’s Approved Person’s status if it considers that the person is not fit and proper to perform the functions to which the approval relates. As well as removing a person’s approval, the FSA may also take disciplinary action against an individual and if it believes that the misconduct may continue or that client assets are at risk, it may seek an injunction.

The Human Resources Department should notify the Compliance Department about all staff leaving the Company.

Once approved by the FSA, the individual is responsible for notifying Human Resources of any changes to their personal circumstances, such as:

· Change of name e.g. due to marriage
· Change of National Insurance Number
· Any directorships held
· If you are made bankrupt or have a county court judgement or arrangement with creditors
· If you are charged with a criminal offence (including traffic offences which result in a ban from driving or involved driving without insurance)
· Any other matter likely to be of interest to the FSA
as soon as the changes occur and in any event within seven days of the relevant event.

All communications concerning Approved Persons will be between the Company (via the Compliance Department) and the FSA so that the Company is aware at all times of relevant issues concerning the individual, including when an individual ceases to be employed by the Company, and the reasons for this.

There is yet more info here including the list of controlled functions.

[Asterix]

Hr

Seems like a device to keep Central HR in charge of individual depts (inc. IT). Hence the long delays nowadays iin the chain interview-selection-approval-start.

[DaveB]

Seems like a device to keep Central HR in charge of individual depts (inc. IT). Hence the long delays nowadays iin the chain interview-selection-approval-start.

I should claify, the text of my post was lifted from the policies of an ex employer that I happened to have kicking around, hence all the references to HR. Basically it's a check to ensure that you are fit to undertake certain responcibilities within an organisation that have financial implications. A lot more than a bog standard credit check.

[Termagant]

Checks on Mortgage advisors

Do all mortgage advisers now have to undergo (and presumably pay for) annual credit and crb checks?