SIFA 7.1 Approved Persons

An authorised firm has approved persons and other staff. Approved persons carry out controlled functions and so have responsibilities for the firm complying with and working within the FSA Handbook of Rules and Guidance.

Controlled functions are functions that meet the conditions under section 59 of FSMA. These conditions are that the function:

• allows the person responsible to exercise a significant influence over the firm's affairs, or
• involves the person responsible in dealing with i.e. having contact with, customers; or
• involves the person responsible in dealing with customers' property.

We must approve a person before they perform one or more controlled functions for your firm. The purpose of the direct approval of people who perform controlled functions is to complement the regulation of the authorised firm for which the approved person(s) performs the functions.

You need to apply to have a person approved to perform a controlled function as follows:

• before a firm is authorised we must approve the individuals who are going to carry out controlled functions and then register them for the appropriate controlled functions; and
• you need to complete and submit a new form to obtain FSA approval if someone joins the firm (including as a partner or director), changes a controlled function or moves to a different firm.There is a special provision to cover absence of up to 12 weeks for senior functions where approval is not required (SUP 10.5.5 R and SUP 10.5.6 G).