AUTH 6.3 Procedures relating to approved persons

In accordance with section 60 of the Act (Application for approval), applications for approved persons must be submitted by, or on behalf of, the firm, not by the candidate.

A summary of FSA procedures is in AUTH 6 Annex 2 G.

Where a firm has outsourced the performance of a controlled function, the details of the outsourcing will determine who may apply for the candidate's approval. Further details are in SUP 10.12.4 G.

The FSA encourages EEA firms and Treaty firms that wish to carry on regulated activities in the United Kingdom to submit any necessary applications for approved person status as early as possible. This will help to ensure that there are no delays in the EEA firm or Treaty firm complying with applicable provisions and commencing its regulated activities. For further details on the application of the approved persons regime to EEA firms and Treaty firms see SUP 10.1 (Application).

The Act allows the FSA three months from the time it receives a properly completed application for approval under section 59 of the Act (Approval for particular arrangements) to consider it and come to a decision. However, if the applicant for Part IV permission is not yet an authorised person, approved person status will only be effective from the date the applicant for Part IV permission receives permission.

Because approved person status is only effective from the date Part IV Permission is given, it is possible that this may take up to twelve months from the date of application if the application for Part IV permission is incomplete. See AUTH 3.9.30 G (How long will an application take?) for guidance on how long this process may take.

Before making a decision either to approve or to give a warning notice, the FSA may request further information about the candidate from the applicant for Part IV permission. If it does this, the three month approval period:1

1. (1)

   will stop on the day the FSA requests the information; and

2. (2)

   will start running again from the point at which it stopped, on the final day on which the FSA receives all the requested information.

The FSA may grant an application only if it is satisfied that the candidate is a fit and proper person to perform the controlled function stated in the application form.

For further guidance on criteria for assessing fitness and propriety, see FIT.2

Whenever it approves an application, the FSA will confirm this in writing to all interested parties.