In determining a person's honesty, integrity and reputation, the FCA5 will have regard to all relevant 3matters including, but not limited to, those set out in FIT 2.1.3 G which may have arisen either in the United Kingdom or elsewhere. The FCA5 should be informed of these matters (see SUP 10A.14.17 R and SUP 10C.14.18R5), but will consider the circumstances only where relevant to the requirements and standards of the regulatory system. For example, under FIT 2.1.3 G(1), conviction for a criminal offence will not automatically mean an application will be rejected. The FCA5 treats each candidate's application on a case-by-case basis, taking into account the seriousness of, and circumstances surrounding, the offence, the explanation offered by the convicted person, the relevance of the offence to the proposed role, the passage of time since the offence was committed and evidence of the individual's rehabilitation.1

5A firm7 determining the honesty, integrity and reputation of staff being assessed under FIT, should consider all relevant matters, including those set out in FIT 2.1.3G, which may have arisen either in the United Kingdom or elsewhere. Firms should inform themselves of relevant matters, including checking for convictions for criminal offences (where possible) and contacting previous employers who have employed that candidate or person. If any staff being assessed under FIT has a conviction for a criminal offence, the firm should consider the seriousness of and circumstances surrounding the offence, the explanation offered by that person, the relevance of the offence to the proposed role, the passage of time since the offence was committed and evidence of the individual’s rehabilitation.

In considering the matters in FIT 2.1.1 G, the FCA5 will look at whether the person's reputation might have an adverse impact upon the firm for which the controlled function is or is to be performed and at the person's responsibilities.

5In considering the reputation of staff being assessed under FIT 2.1.1AG a firm7 should have regard to whether that person's reputation might have an adverse impact upon the firm for which the function is to be performed and the person's responsibilities.

The matters referred to in FIT 2.1.1 G to which the FCA5 will have regard, and to which a firm7 should also have regard, 5include, but are not limited to:

1. (1)

   whether the person has been convicted of any criminal offence; this must include, where provided for by the Rehabilitation Exceptions Orders4to2 the Rehabilitation of Offenders Act 1974 or the Rehabilitation of Offenders (Northern Ireland) Order 1978 (as applicable)4, any spent convictions2; particular consideration will be given to offences of dishonesty, fraud, financial crime or an offence under legislation relating to companies, building societies, industrial and provident societies, credit unions, friendly societies, banking,4 other financial services, insolvency, consumer credit companies, insurance, 4 consumer protection, money laundering, market manipulation and 4insider dealing2, whether or not in the United Kingdom4;1

   2424444
2. (2)

   whether the person has been the subject of any adverse finding or any settlement in civil proceedings, particularly in connection with investment or other financial business, misconduct, fraud or the formation or management of a body corporate;

3. (3)

   whether the person has been the subject of, or interviewed in the course of, any existing or previous investigation or disciplinary proceedings, by the appropriate regulator, by other regulatory authorities (including a previous regulator), clearing houses and exchanges, professional bodies, or government bodies or agencies;

4. (4)

   whether the person is or has been the subject of any proceedings of a disciplinary or criminal nature, or has been notified of any potential proceedings or of any investigation which might lead to those proceedings;

5. (5)

   whether the person has contravened any of the requirements and standards of the regulatory system or the equivalent standards or requirements of other regulatory authorities (including a previous regulator), clearing houses and exchanges, professional bodies, or government bodies or agencies;

6. (6)

   whether the person has been the subject of any justified complaint relating to regulated activities;

7. (7)

   whether the person has been involved with a company, partnership or other organisation that has been refused registration, authorisation, membership or a licence to carry out a trade, business or profession, or has had that registration, authorisation, membership or licence revoked, withdrawn or terminated, or has been expelled by a regulatory or government body;

8. (8)

   whether, as a result of the removal of the relevant licence, registration or other authority, the person has been refused the right to carry on a trade, business or profession requiring a licence, registration or other authority;

9. (9)

   whether the person has been a director, partner, or concerned in the management, of a business that has gone into insolvency, liquidation or administration while the person has been connected with that organisation or within one year of that connection;

10. (10)

    whether the person, or any business with which the person has been involved, has been investigated, disciplined, censured or suspended or criticised by a regulatory or professional body, a court or Tribunal, whether publicly or privately;

11. (11)

    whether the person has been dismissed, or asked to resign and resigned, from employment or from a position of trust, fiduciary appointment or similar;

12. (12)

    whether the person has ever been disqualified from acting as a director or disqualified from acting in any managerial capacity;

13. (13)

    whether, in the past, the person has been candid and truthful in all their6 dealings with any regulatory body and whether the person demonstrates a readiness and willingness to comply with the requirements and standards of the regulatory system and with other legal, regulatory and professional requirements and standards.

In determining a person's competence and capability, the FCA, in accordance with FIT 1.1.2G,7 will have regard to all relevant 3matters including but not limited to:

1. (1)

   whether the person satisfies the relevant FCA9 training and competence requirements1 in relation to the controlled function the person performs or is intended to perform;

   19
2. (2)

   whether the person has demonstrated by experience and training that they are 6suitable2, or will be suitable 2if approved, to perform the controlled function;4

   622
3. (3)

   whether the person has adequate time to perform the controlled function and meet the responsibilities associated with that function.4

In determining a person's competence and capability to perform an FCA designated senior management function or an FCA certification function, a firm8, in accordance with FIT 1.1.2G,7 should have regard to all relevant matters including but not limited to:6

1. (1)

   whether the person satisfies any applicable training and competence requirements (in relation to the function that the person performs or is intended to perform);6

2. (2)

   whether the person has demonstrated by experience and training that they are suitable to perform the function they are intended to perform;6

3. (3)

   whether the person has adequate time to perform the function in question and meet the responsibilities associated with that function.6

A person may have been convicted of, or dismissed or suspended from employment for, drug or alcohol abuses or other abusive acts. This will be considered by the FCA6only in relation to a person's continuing ability to perform the particular controlled function for which the person is or is to be employed.5

6The FCA would expect a firm8 determining the competence and capability of staff being assessed under FIT to consider convictions, dismissals and suspensions from employment for drug or alcohol abuses or other abusive acts only in relation to a person's continuing ability to perform the particular FCA designated senior management function or an FCA certification function7 for which the person is, or is to be, employed.

In determining a person's financial soundness, the FCA1 will have regard, and a firm3 should also have regard, 1to any factors including, but not limited to:

1. (1)

   whether the person has been the subject of any judgment debt or award, in the United Kingdom or elsewhere, that remains outstanding or was not satisfied within a reasonable period;

2. (2)

   whether, in the United Kingdom or elsewhere, the person has made any arrangements with their2 creditors, filed for bankruptcy, had a bankruptcy petition served on them2, been adjudged bankrupt, been the subject of a bankruptcy restrictions order (including an interim bankruptcy restrictions order), offered a bankruptcy restrictions undertaking, had assets sequestrated, or been involved in proceedings relating to any of these.

The FCA1will not normally require a 1candidate to supply a statement of assets or liabilities. The fact that a person may be of limited financial means will not, in itself, affect their 1suitability to perform a controlled function. The FCA would expect a firm3 to take a similar view in assessing whether staff being assessed under FIT, are fit and proper.1