Fit and proper
The test a regulator applies to the people who run or control a regulated firm: their honesty, competence and financial soundness.
Directors, controllers and key function holders are usually assessed before they take up their roles, and firms are expected to keep checking afterwards.
In the UK, the Senior Managers and Certification Regime makes firms certify certain staff as fit and proper every year.
Where the rules use it.
- Senior Managers & Certification RegimeIndividual accountability: senior manager responsibilities, certification and conduct rules.United Kingdom · 5 controls
- GFSC Finance Sector Code of Corporate GovernancePrinciples for the boards of all Guernsey licensees, with an annual confirmation of compliance.Guernsey · 5 controls
- Central Bank of Ireland — Individual Accountability Framework & SEARSenior Executive Accountability Regime, conduct standards and enhanced fitness and probity.Ireland · 4 controls