SIFA 7.6 The Approval Process

Approval is only granted by the FSA if it is satisfied that the individual candidate is a fit and proper person to perform the controlled function applied for. The minimum standards for becoming and remaining an approved person are set out in the Fit and Proper test for Approved Persons module of the Handbook (FIT).

The main assessment criteria are set out at FIT Chapter 2. The 'fit and proper' test takes into consideration an individual's:

• honesty, integrity and reputation;
• competence and capability; and
• financial soundness.

In determining a person's competence and capability the FSA will have regard (among other matters) to whether:

• The person satisfies the relevant requirements of the Training and Competence sourcebook (TC) in relation to the controlled function the person is intended to perform.
• The person has demonstrated by experience and training that they will be able to perform the controlled function. For example, you must demonstrate previous experience in the type of business for which you are applying. For a small firm of investment intermediaries we would generally expect that at least one of the principals or directors had at least three years in the financial services industry, with at least one of these years in the independent market.

In assessing whether individuals are fit and proper, we also take into account regulated activities of the firm which the individual will perform, the permissions applied for by that firm and the markets in which it operates.