Approved persons have to know and meet our regulatory requirements, as well as understand how to apply them. In short, an approved person needs to:
- Meet and abide by the rules of the FCA’s fit and proper test
- Comply with the FCA’s Statements of Principle and the Code of Practice
- Report anything that could affect their ongoing suitability to the FCA
The FCA’s Statements of Principle and Code of Practice
The code of practice outlines the behaviour that, in the FCA’s opinion, will or will not meet a statement of principle. An approved person:
- Must act with integrity in carrying out their controlled function
- Must act with due skill, care and diligence in carrying out their controlled function
- Must observe proper standards of market conduct in carrying out their controlled function
- Must deal with all regulators in an open and co-operative way and must disclose appropriately any information of which we or PRA would reasonably expect notice
- Performing a significant influence function (SIF) must take reasonable steps to ensure that the business of the firm for which they are responsible in their controlled function is organised so that it can be controlled effectively
- Performing a SIF must exercise due skill, care and diligence in managing the business of the firm for which they are responsible in their controlled function
- Performing a SIF must take reasonable steps to ensure that the business of the firm for which he is responsible in his controlled function complies with the relevant requirements and standards of the regulatory system
It’s important to note, the FCA can take disciplinary action against any approved person who acts in a way that is inconsistent with the rules for controlled functions.
For more information visit the FCA’s website.