FIT 1.1 Application and purpose
- (1)
a firm (including an SMCR firm2);1
1 - (2)
an applicant for Part 4A permission;
- (3)
an 1EEA firm or a Treaty firm2 that wishes to establish a branch into the United Kingdom using EEA rights or Treaty rights;2or apply for a top-up permission2;
11919119191191911 - (4)
an approved person performing an FCA controlled function2;
1 - (5)
a candidate for an FCA controlled function2;1
1 - (6)
a certification employee performing an FCA certification function2; 4
1 - (7)
a person whom an SMCR firm2 is proposing to certify to perform an FCA certification function; and4
21 - (8)
4a board director as set out in FIT 1.1.2G(1)(e)5.
The purpose of FIT is to set out and describe the criteria that:1
- (1)
an SMCR firm2 should consider when: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
- (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 - (c)
assessing the fitness and propriety of a person whom the firm is proposing to certify to perform an FCA certification function2; 4
- (d)
assessing the continuing fitness and propriety of a person whom the firm has certified to perform an FCA certification function2; and4
- (e)
4(in the case an FCA-authorised person that is not a limited scope SMCR firm) assessing the fitness of a non-SMF board director subject to competence requirements under the competent employees rule, any directly applicable EU legislation or any other requirement of the regulatory system.
- (a)
- (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
1The table in FIT 1.1.4G summarises the situations to which FIT applies.
1Table: Situations to which FIT applies
What FIT applies to |
Does it apply to SMCR firms2? |
Does it apply to firms that are not SMCR firms2? |
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 an SMCR firm2 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 an SMCR firm2. |
(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 certification function2 |
Yes |
No |
FCA certification functions do not apply to a firm that is not an SMCR firm.2 However, see the comment on row (2).2 |
1(6) A firm assessing the continuing fitness and propriety of a person whom a firm has certified to perform an FCA certification function2 |
Yes |
No |
FCA certification functions do not apply to a firm that is not an SMCR firm.2 However, see the comment on row (2).2 |