Annual Fit & Proper Reviews

Fit & Proper?

We are all familiar with the need to carry out annual checks, but recently, we have had a number of queries regarding the scope of these, particularly with regard to Non Executive Directors.

All Approved Persons – and that will include both Executive and Non Executive directors – must be subject to annual Fit & Proper Reviews.

Whilst a Non Executive may not have the same influence or control, he is still performing a Controlled Significant Influence function, so must be subject to the same checks.

The starting point for both is completion of an annual declaration similar to the RWA template available in the Compliance Documents area of the Website.

We would also recommend that you carry out Credit Checks and Disclosure and Barring Service (DBS) Checks (Basic, Standard or Enhanced).

For all other staff we also recommend that as a minimum, they also complete an annual declaration which is similar to that for Approved Persons.

You may also wish to consider DBS and Credit checks, but note that you can only apply for Basic DBS checks as the list of roles that allow Standard and Enhanced checks does not cover ordinary employees in a financial services firm, only Approved Persons.

RWA can connect you with a specialist company that can arrange such checks if so desired, and please speak to your RWA Business manager if you have any questions.

 

About the author

Terence is the Compliance Director at RWA. He has over 35 years' experience in the Financial Services environment, covering general insurance, investments and mortgages. Before joining RWA, Terence worked for a large PLC insurance brokerage in Manchester, overseeing some 20 acquisitions. He was made a Director of RWA in 2011 and has worked with insurance broking firms of all sizes across the UK. He has a particular interest in Financial Crime and the protecting the insurance broker. Terence is also Executive Chairman of the Association of Professional Compliance Consultants (APCC), the professional body for the compliance consultancy sector.

Terence Clark

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