Consideration and assessment of applications
GEN 5.7.3 GEN 5.7.3
An individual shall only be approved to carry on one or more Recognised Functions if the Authorised Person is satisfied that the individual is fit and proper to be a Recognised Person. In making this assessment, the Authorised Person must consider:(a) the individual's integrity;(b) the individual's competence and capability;(c) the individual's financial soundness;(d) the individual's proposed role within the Authorised Person; and(e) any other relevant matters.
Authorised Persons may refer to the GPM for more detail as to how these requirements may be interpreted.
In Rule 5.7.3, an individual may not be considered as fit and proper where:(a) he is bankrupt;(b) he has been convicted of a serious criminal offence; or(c) he is incapable, through mental or physical incapacity, of managing his affairs.
In assessing an application for Recognised Person status, the Authorised Person may:(a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;(b) require the individual to provide additional information;(c) require any information provided in accordance with (b) or otherwise to be verified in any way as it chooses to specify; and(d) take into account any information which it considers appropriate.
An Authorised Person must not permit an individual to perform a Recognised Function on its behalf, except as permitted by Rule 8.6 or with the consent of the Regulator, unless that individual is a Recognised Person who has been assessed by the Authorised Person as competent to perform that Recognised Function in accordance with Rule 5.7.5.
In assessing the competence of an individual, an Authorised Person must:(a) obtain details of the knowledge and skills of the individual in relation to the knowledge and skills required for the role;(b) take reasonable steps to verify the relevance, accuracy and authenticity of any information acquired;(c) determine whether the individual holds any relevant qualifications with respect to the Recognised Function or Recognised Functions performed, or proposed to be to performed, within the Authorised Person;(d) determine the individual's relevant experience; and(e) determine the individual's knowledge of the Authorised Person's relevant systems and procedures with respect to the type of business that is to be, or is being, conducted by the individual on behalf of the Authorised Person.
An Authorised Person must be satisfied that a Recognised Person:(a) continues to be competent in his proposed role;(b) has kept abreast of relevant market, product, technology, legislative and regulatory developments; and(c) is able to apply his knowledge.
GEN 5.7.9 GEN 5.7.9
The Authorised Person is responsible for the conduct of its Recognised Persons and for ensuring that they remain fit and proper to carry out their role.
In considering whether a Recognised Person remains fit and proper, the Authorised Person should consider the guidance applicable to Approved Persons in the GPM and the notification requirements in Rule 8.10.
Before appointing an individual as a Recognised Person approved to carry out Recognised Functions, an Authorised Person must make reasonable enquiries as to an individual's fitness and propriety to carry out a Recognised Function.
An Authorised Person must not appoint an individual as a Recognised Person if it has reasonable grounds to believe that the individual is not fit and proper to carry out the Recognised Function.