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 pursuant to 2.1 to 2.5 and, where applicable, section 60A(1) of FSMA, a firm must be satisfied that the person:

1. (1) has the personal characteristics (including being of good repute and integrity);
2. (2) possesses the level of competence, knowledge and experience;
3. (3) has the qualifications; and
4. (4) 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

1. (1) Before deciding whether a person (P) is fit and proper, a firm must take reasonable steps to obtain appropriate references covering the past 6 years from the following:
1. (a) each FCA-authorised person and PRA-authorised person that is, or was:
1. (i) P’s current or former employer; or
2. (ii) an organisation (not falling within (i)) at which P is currently serving, or has served, as an approved person, non-executive director, notified non-executive director, credit union non-executive director or a key function holder, or performed, or is currently performing, a certification function;
2. (b) P’s other current and former employers; and
3. (c) from other organisations at which P served as, or is currently, a non-executive director.
2. (2) A firm (A) is not required to request references from an employer of P or any organisation referred to in (1) (such employer or organisation, B) where:
1. (a) A and B are members of the same group; and
2. (b) there are adequate arrangements in place under which A has access to all information sources to which B has access to the extent necessary were B giving a reference in accordance with this Part.
3. If A has access to only some of the information sources in (b), A may ask for a reference that only covers the information to which A does not have access. To the extent that A does not request a reference in the circumstances set out in this (2), A must access and obtain the relevant information.
4. (3) A firm must take reasonable steps to obtain references
1. (a) in respect of a senior management application, no later than one month before the end of the application period set out in section 61 of FSMA;
2. (b) where a request by a firm for a reference in respect of a senior management application to an employer or organisation would require the firm, the employer, the organisation or any other person to make a mandatory disclosure prior to P disclosing to its current employer or organisation, as the case may be, that such application has been made, before the end of the application period set out in in section 61 of FSMA; or
3. (c) in respect of the issuing of a certificate under section 63F of FSMA, before the certificate is issued.

2.8

1. (1) Where a firm (A) seeks to obtain a reference pursuant to 2.7, A must request that the organisation giving the reference (B) discloses all matters of which B is aware that B reasonably considers to be relevant to the assessment of that person’s fitness and propriety.
2. (2) A must also request that, if B is a full scope regulatory reference firm, B discloses the information contained in the regulatory reference template.

2.9

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. (1) 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. (2) if P has lived or worked outside the UK for a material time in the previous six 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. (3) request, and have regard to, such information.

2.10

If a firm previously obtained the information in 2.7 to 2.9 when it determined that a person was fit and proper for the purposes of this Part and the firm engages that person for a continuous period of time, the firm is not required to comply with 2.7 to 2.9 again in respect of any subsequent appointments at the same firm within that continuous period.