Prudential Regulation Authority Rulebook

2.1

A firm must not make a senior management application in relation to a person unless it is satisfied that person is fit and proper to perform the PRA senior management function to which the application relates.

2.2

A firm must not issue a certificate in relation to a person, unless it is satisfied that person is fit and proper to perform the certification function to which the certificate relates.

2.3

A firm must not appoint a person as a notified non-executive director or credit union non-executive director, unless it is satisfied that person is fit and proper to perform that non-executive director role.

2.4

A firm other than a third country CRR firm must ensure that each member of its management body is at all times fit and proper.

[Article 91(1) CRD IV]

2.5

A third country CRR firm must ensure that each person who performs a PRA senior management function in relation to its UK establishment is at all times fit and proper.

2.6

In deciding whether a person is fit and proper, a firm must be satisfied that the person:

1. (a) has the personal characteristics (including being of good repute and integrity);
2. (b) possesses the level of competence, knowledge and experience;
3. (c) has the qualifications; and
4. (d) has undergone or is undergoing all training,

required to enable such person to perform his or her function effectively and in accordance with any relevant regulatory requirements, including those under the regulatory system, and to enable sound and prudent management of the firm.

2.7

Before deciding whether a person is fit and proper, a firm must take reasonable steps to obtain appropriate references covering at least the past 5 years from that person’s current and previous employers, and from organisations at which that person served as, or is currently, a non-executive director.

2.8

In deciding whether a person (P) is fit and proper in connection with a senior management application or on appointment as a notified non-executive director or credit union non-executive director, a firm must:

1. (a) obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under the Police Act 1997 (Certificates of Criminal records, etc) and related subordinated legislation of the UK or any part of the UK;
2. (b) if P has lived or worked outside the UK for a material time in the previous five years, obtain P’s consent for the firm to request the fullest information in relation to P that it is lawfully able to request under equivalent overseas legislation; and
3. (c) request, and have regard to, such information.

2.9

If a firm engages a person for a continuous period of time it is only required to comply with 2.7 and 2.8 the first time it determines that person is fit and proper in relation to a senior management function, non-executive director function or certification function.