Certification regime

This summary is based on the consultation paper (CP17/25) published by the FCA on 26 July 2017 and the FCA’s “near-final” rules (PS18/14) published on 04 July 2018.

The Certification Regime applies to those individuals who are not Senior Managers, but whose job the FCA regards as potentially having a big impact on customers, markets or the firm itself. Some of these roles are controlled functions under the Approved Persons Regime (including, without limitation, the CF30 customer function). The FCA will no longer approve this category of personnel – rather, it will be for firms themselves to determine who takes up these roles and “certify” that individuals are fit and proper (at the point of recruitment and on an annual basis thereafter).

The standards in relation to fitness and propriety are broadly similar to those under the current regime. There are now, however, requirements about the evidence that firms need to have collated to satisfy themselves that the relevant individual meets these standards.

All staff subject to the Certification Regime will need to comply with the Conduct Rules.

Firms will need to certify relevant staff as fit and proper for the first time 12 months after commencement of the SMCR. However, firms will need to have identified Certification Staff prior to commencement because the Conduct Rules will apply to such staff from day one.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.