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01. References your firm has supplied to others

Under SM&CR, when you employ or promote an employee to a new Certification or Senior Management Function you usually need to request regulatory references from any FCA/PRA-regulated firms that the employee has worked for in the last 5 years.

Conversely, you must provide regulatory references for any former employee of your firm that joins another FCA/PRA-regulated firm within 5 years of leaving.

Corterum can be used to store the regulatory references that you have given to other FCA/PRA-regulated firms:

  • Click Workbench and then Datasets.
  • Click Certification Regime and then click Regulatory References.
  • Click Regulatory References Provided and then click on the circular Plus symbol to the right of the dataset title. The Regulatory References Provided dataset will open up.
  • Click the Reference Requested By box and then select the firm that requested the reference from you. If the firm is not in Corterum, you will need to create them.
  • Click Identification Number and type in the FCA/PRA Firm Reference Number (FRN) of the firm that requested the reference. You can search this number in the FCA’s Financial Services Register/The Directory to ensure that the reference request is from a legitimate firm.
  • Click inside the box entitled Date Request Received and indicate the date when the firm requested the reference from you.
  • Click inside the box entitled Date of Response and indicate the date when you responded to the reference request.
  • Click inside the Requesting Party Address box and enter in the address of the firm that requested the reference from you. Use its registered office or head office address if the requesting firm did not provide its address to you.
  • Click inside the Requesting Party Postcode box and enter in the postcode of the firm that requested the reference from you. Use the postcode of its registered office or of its head office if the requesting firm did not provide its postcode to you.
  • Navigate to where The Reference is written and click inside the Reference Subject box.
  • Select the Person Entity who is the subject of the reference. If they have not been created as a Person Entity within Corterum you will need to add them.
  • Click the Subject Position box and distinguish whether the reference subject (the employee you provided the reference for) is or was a:
    • Senior manager
    • A certification employee
    • A non-executive director
    • Another employee type (‘other’) at your firm.
  • Click inside the box entitled Role which is the subject of the reference and type in the role/job title of the employee you provided the reference for. If the employee had more than one role title whilst employed by your firm, enter only the one(s) that are relevant to the reference request.
  • Move underneath the box entitled Role which is the subject of the reference and click the relevant toggle:
    • Subject was a Senior Manager?
    • Subject was Certification Staff?
    • Subject was a Notified NED (Non-executive Director)?
  • Click inside the box entitled Background to request and enter a short summary explaining why the reference was requested, for example,  “This reference was requested by Firm X because Employee Y is taking up a new job with them.”
  • Click inside the box entitled Information being requested and briefly summarise what information the requesting firm asked to be included in the reference.
  • Click the button underneath Reference request to upload a copy of the reference request sent by the requesting firm. This is likely to be an email so you should upload it as a PDF.
  • Click the button underneath Reference provided and upload a full copy of the reference that you sent to the requesting firm. You should upload this in either PDF or Word Doc format.

Revising an existing reference

  • Navigate to the Reference revised toggle and click this if you are revising a reference that you have previously sent to the requesting firm. Do not select this if you are not revising an existing reference.
  • If you are revising a reference you have previously supplied, click in the date of reference revision box and indicate when you revised the reference.
  • Then, click inside the box entitled rationale behind reference revision and explain why you revised the reference. Under SM&CR, you must revise regulatory references sent to other FCA/PRA-regulated firms if you discover, at any time after issuing the reference, that the reference subject violated a Conduct Rule or obligation under SM&CR when they were employed by you.
  • Click the button underneath where revised reference is written and upload a copy of the revised reference. You should upload this in either PDF or Word Doc format.

Employee comments

Under SM&CR, a firm is normally required to give an employee/former employee an opportunity to comment on a reference that it has written about them, particularly if it is reporting a breach, revising an existing reference or otherwise reporting information that could have a negative material impact on fit & proper testing:

  • If you have given your employee an opportunity to comment on their reference, click the toggle underneath subject given opportunity to comment.
  • Then click inside the date of offer to comment box and indicate when you gave the employee a chance to comment on their reference.
  • If the employee has given comment on their reference click the toggle underneath Subject elected to comment on reference?
  • If the employee chose to comment on their reference, click inside the date of subject comments box and indicate the date when the employee provided commentary on their reference to you.
  • If the employee commented on their reference, click inside the date on which comments received box and indicate the date when you received their comments on their reference.
  • If the employee commented on their reference, click inside the summary of subject comments box and briefly summarise the comments made by the employee about their reference.
  • If the employee commented on their reference, click the button underneath subject comments is written and upload a copy of the comments made by the employee if they were sent electronically (optional).
  • If the employee refused an offer to comment on their reference, click inside the date of refusal to comment box and indicate the date when the employee refused to comment on their reference.
  • If the employee did not comment on their reference, click inside the box entitled explanation as to why no comments received and briefly explain why the employee did not comment on their reference (was it not possible to contact them, for example)?

If you cannot get in touch with the reference subject to offer them an opportunity to comment on their reference, you should make a few subsequent attempts to contact them. Corterum allows you to record detailed information of up to three contact attempts. To register contact attempts you:

  • Click in the ‘Date of Attempt’ boxes and indicate when you attempted to contact the reference subject.
  • Click on the methods of communication attempted box and select all the methods that you used to contact the reference subject:
    • Mail
    • Email
    • Fax
    • Other
  • Click inside the box entitled summary of attempts made to contact subject and briefly summarise all your attempts to contact the reference subject about their reference.
  • If your request(s) for the reference subject to comment on their reference have spawned action points, click inside the summary of action points box and explain what they are. For example, you would note here if the reference subject was to supply evidence to support their assertions.
  • If you want to upload any supporting documents related to your attempts to invite the reference subject to comment on their reference, click the Documents button located underneath the ‘summary of action points’ box.
  • If you requested additional documents from the reference subject to either help you write their reference or in support of their case against your reference revision, or if the requesting firm has requested additional documents from you, move to the additional documentation requests panel and do the following:
    • Click the toggle underneath additional docs requested?
    • Click the box underneath date of additional docs request and indicate the date when you requested additional documents from the reference subject/when the requesting firm asked for additional documents from you.
    • Click inside the additional docs requested box and describe all the additional documents requested.
    • Click inside the rationale why additional docs requested box and explain why the additional documents were requested.
    • If the request to provide additional documents was approved, click the toggle underneath where request to provide additional docs approved? is written.
    • Whether the request for additional documents was approved or rejected, click inside the rationale behind decision to approve/reject box and explain why the decision to approve or reject was made.
    • If you sent additional documents to the requesting firm or to the reference subject, click inside the date additional docs sent box and indicate the date when you sent the documents.
    • If you sent additional documents to the requesting firm or to the reference subject, click the button underneath additional docs sent and upload them (optional).

Asserting accuracy

Under SM&CR, you must take reasonable steps to ensure that the regulatory references you provide to other FCA/PRA-regulated firms are verified as accurate. If you have verified the references:

  • Press the toggle underneath contents of reference verified?
  • Then, click inside the box entitled summary of reference verification steps and summarise all the main steps you took to verify the information that you disclosed in the reference.
  • If you have not yet verified the reference, do this ASAP.
  • Click the button underneath other documents and upload any additional documents associated with the reference.
  • Then, click inside the box entitled ‘Summary of reference verification steps’ and summarise all the main steps you took to verify the information that you disclosed in the reference

Final steps

  • Finally, click the box entitled last update and indicate when you last updated this dataset.
  • Click Save and Close and then the information about the reference will be permanently recorded in Corterum.
Next 02. References your firm has requested from others
In this article..

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