Here at RWA, we frequently come across firms appointing new senior executives.
However, we then see that these appointments have been completed WITHOUT regulatory approval.
We would like to take this opportunity to remind all firms that if you wish to appoint a new director (executive or non-executive) or a new partner, then you MUST first seek FCA approval by completing the relevant application (Form A) on the FCA’s CONNECT system.
The FCA expects robust due diligence and for a firm to be able to produce a rationale as to why this appointment is good for the customer and the firm and to be able to demonstrate that the applicant has all the necessary skills and experience to fulfil their duties. A full detailed CV will be required with the application to the regulator.
Also, it is expected that you will have undertaken DBS and credit checks on the individual applicant.
Only when the application has been submitted and the FCA has given formal written approval (and this can take up to three months from the date the FCA deem an application to be complete) can the individual start to perform their duties and if a director, be registered at Companies House.
More details can be seen at - https://www.fca.org.uk/firms/approved-persons
Failure to follow this is a serious breach of FCA rules and may expose the firm to regulatory censure.
If you would like to discuss this further, please contact the team at RWA.
