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FIT 1.1 Application and purpose

FIT 1.1.1GRP

FIT applies to:

  1. (1)

    a firm (including a relevant authorised person);1

    1
  2. (2)

    an applicant for Part 4A permission;

  3. (3)

    an 1EEA firm, a Treaty firm or a UCITS qualifier that wishes to establish a branch into the United Kingdom using EEA rights, Treaty rights or UCITS directive rights (see SUP 10A.1.10 G and SUP 10A.1.11 R), or apply for a top-up permission (see SUP 10A.1.13 R);1

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  4. (4)

    an approved person;

    1
  5. (5)

    a candidate;1

    1
  6. (6)

    a certification employee performing an FCA specified significant-harm function; and1

  7. (7)

    a person whom a firm is proposing to certify to perform an FCA specified significant-harm function.1

FIT 1.1.2GRP

The purpose of FIT is to set out and describe the criteria that:1

  1. (1)

    a relevant authorised person should consider when:1

    1. (a)

      assessing the fitness and propriety of a candidate whom the firm is proposing to put forward for approval as an FCA-approved SMF manager;1

    2. (b)

      assessing the continuing fitness and propriety of a person approved to perform the function of an FCA-approved SMF manager, including for formulating an opinion about whether there are any grounds on which the regulator could withdraw the approval given to that individual to perform that function under section 63(2A) of the Act;

      1
    3. (c)

      assessing the fitness and propriety of a person whom the firm is proposing to certify to perform an FCA specified significant-harm function; and

    4. (d)

      assessing the continuing fitness and propriety of a person whom the firm has certified to perform an FCA specified significant-harm function; and

  2. (2)

    the FCA will consider when assessing the fitness and propriety of a candidate for a controlled function, including a designated senior management function (see generally SUP 10A and SUP 10C on approved persons), and may consider when assessing the continuing fitness and propriety of approved persons.1

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FIT 1.1.3G

1The table in FIT 1.1.4G summarises the situations to which FIT applies.

FIT 1.1.4GRP

1Table: Situations to which FIT applies

What FIT applies to

Does it apply to relevant authorised persons?

Does it apply to firms that are not relevant authorised persons?

Comment

(1) A firm assessing the fitness and propriety of a candidate whom the firm is proposing to put forward for approval

Yes

No

However, the answer to Question 11 in SUP 10A Annex 1 (Frequently asked questions) says that the FCA's approval process is not a substitute for the checks that a firm should be carrying out on its prospective recruits. FIT may be a useful guide to matters that a firm that is not a relevant authorised person should take into account.

(2) A firm assessing the continuing fitness and propriety of an approved person

Yes

No

However, a firm should employ personnel with the skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them (SYSC 5.1). FIT may be a useful guide to matters which a firm should take into account if it is not a relevant authorised person.

(3) The FCA assessing the fitness and propriety of a candidate for approval as an approved person

Yes

Yes

(4) The FCA assessing the continuing fitness and propriety of an approved person

Yes

Yes

1(5) A firm assessing the fitness and propriety of a person whom a firm is proposing to certify to perform an FCA specified significant-harm function

Yes

No

See the comment on row (2)

1(6) A firm assessing the continuing fitness and propriety of a person whom a firm has certified to perform an FCA specified significant-harm function

Yes

No

See the comment on row (2)