What does ‘fit and proper’ mean in the context of SMCR?

Certification Regime staff must be ‘fit and proper’ to perform their role.

In a change from the Approved Persons Regime, the FCA will no longer approve individuals who are subject to the Certification Regime.  Instead, this responsibility will now fall on firms themselves.  Specifically, firms will be responsible for certifying, at least annually, that all staff falling under the Certification Regime are fit and proper to perform their role.  If an individual performs more than one certification function, that person will need to be certified as fit and proper for each function performed.

On assessing an individual as being fit and proper to perform his/her role, the firm should issue a certificate to that individual.  Without such a certificate, a firm should not allow an employee to perform a Certification Function[1].

[1] SYSC 27.1.3G

Everything you wanted to know about SM&CR - but were afraid to ask!

New to SMCR – or need a hand getting up to speed withj SMCR compliance? This guide will help you understand and implement every part of the SM&CR. You’ll learn, amongst other things:

  • How firms are classified.
  • How to identify Certification Staff.
  • The Responsibilities of a Senior Manager.
  • Conduct Rules & how they apply to your role.

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