ABSTRACT
The Securities and Investments Board, pre-cursor to the Financial Services Authority, was required to consider whether an applicant was 'a fit and proper person to carry on the investment business and provide the services described in the application'. 'Fit and proper' is the foundation of the entire system: any individual or body that wishes to carry out any regulated activity must, as a threshold condition, be 'a fit and proper person' having regard to the relevant regulator's objectives. The 'competent employees rule', requires that a firm must employ personnel with the skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them. There are two specific 'evidence requirements' that a firm may need to comply with as part of its assessment of fit and proper such as performing a criminal records check for senior managers; and seeking regulatory references for both senior managers and certification employees.
