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Approved Persons

Approved Persons

Why do you need to know?

An approved person is an individual who has been approved by the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA) to perform one or more Controlled Functions on behalf of an authorised firm. Approval must be obtained before an individual can perform a Controlled Function.

The regime is a fundamental part of the FCA/PRA?s regulatory regime. It enables the FCA/PRA to check the people responsible for running the credit union and the credit union itself.

The Statements of Principle and Code of Practice for Approved Persons

An approved person must:

 Act with integrity .

 Act with due skill, care and diligence .

 Observe proper standards of market conduct .

 Deal with the FCA/PRA and other regulators in an open and co-operative way and must disclose information appropriately.

 If they perform a significant influence function, take reasonable steps to ensure that the business of the firm is organised to be controlled effectively, complies with the requirements and standards of the regulatory system, and exercises due skill, care and diligence in managing the business of the firm, for which they are responsible.

Fit and Proper Test

This is a benchmark used to assess the applicant?s suitability to perform a

controlled function; the FCA/PRA considers the honesty, integrity and reputation, competence and capability, and financial soundness of the applicant . Within these broad categories, there are a number of areas that affect whether an individual could be regarded as fit and proper to perform a controlled function:

Honesty, integrity and reputation

No unspent criminal convictions

 No previous involvement in financial services crime or fraud

 No record of a previous investigation by a financial regulator

 No involvement with another company that has been refused authorisation or had its authorisation revoked

 No involvement as a director or partner in a business that has become insolvent or gone into liquidation

 No previous history of lack of openness with a regulator

Competence and capability

Trained or currently training to perform the role

 Previous experience applicable to the role

 No previous conviction or suspension from employment for drug or alcohol abuse

Financial soundness

The FCA/PRA will have regard to any factors including, but not limited to:

 Whether the applicant was subject to any judgment debt and it remains outstanding. The FCA/PRA have given a verbal assurance that a single judgment debt in itself will not be an issue; however a significant number of judgment debts would be a matter of concern.

 Bankruptcy.

 If the applicant has limited financial means this will not, in itself, affect their suitability to perform a controlled function.

 

 If the FCA/PRA is informed of something which may suggest that the applicant is not fit and proper, they will first consider how relevant it is; it does not automatically mean the applicant will not be approved. If there are concerns

 The FCA/PRA will issue a Warning Notice outlining the concerns and you will have the opportunity to discuss them before the final decision is made.

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Central Liverpool Credit Union Tel: 0151 708 5515 Email: enquiries@centralliverpoolcu.co.uk Web: http://www.centralcu.co.uk/
Central Liverpool Credit Union is authorised by the Prudential Regulation Authority & regulated by the Financial Conduct Authority & the Prudential Regulation Authority. FSA FRN: 213251