• GEN 5.6 GEN 5.6 Application for Approved Person status

    • GEN 5.6.1

      In submitting applications to the Regulator for Approved Person status in respect of the Controlled Functions, the Authorised Person must make applications in such form as the Regulator shall prescribe.

    • GEN 5.6.2

      Applicants for Approved Person status must countersign or otherwise consent to an application.

    • GEN 5.6.3

      When an Authorised Person applies to the Regulator, for that individual to be an Approved Person, the individual must satisfy the Regulator and the Authorised Person that he is a fit and proper person to carry out the role.

    • Consideration and assessment of applications

      • GEN 5.6.4 GEN 5.6.4

        An individual will only be authorised to carry on one or more Controlled Functions if the Regulator is satisfied that the individual is fit and proper to be an Approved Person. In making this assessment, the Regulator will consider:

        (a) the individual's integrity;
        (b) the individual's competence and capability;
        (c) the individual's financial soundness;
        (d) the individual's proposed role within the Authorised Person; and
        (e) any other relevant matters.

        • Guidance

          The GPM sets out matters which the Regulator takes into consideration when making an assessment of the kind under Rule 5.6.4.

      • GEN 5.6.5

        In Rule 5.6.4, an individual may not be considered as fit and proper where:

        (a) he is bankrupt;
        (b) he has been convicted of a serious criminal offence; or
        (c) he is incapable, through mental or physical incapacity, of managing his affairs.

      • GEN 5.6.6

        In assessing an application for Approved Person status, the Regulator may:

        (a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;
        (b) require the individual or Authorised Person to provide additional information;
        (c) require any information provided in accordance with (b) or otherwise to be verified in any way specified by the Regulator; and
        (d) take into account any information which it considers appropriate.

      • GEN 5.6.7

        An Authorised Person must not permit an individual to perform a Controlled Function on its behalf, except as permitted by Rule 8.6, unless that individual is an Approved Person who has been assessed by the Authorised Person as competent to perform that Controlled Function in accordance with Rule 5.6.8.

      • GEN 5.6.8

        In assessing the competence of an individual, an Authorised Person must:

        (a) obtain details of the knowledge and skills of the individual in relation to the knowledge and skills required for the role;
        (b) take reasonable steps to verify the relevance, accuracy and authenticity of any information acquired;
        (c) determine whether the individual holds any relevant qualifications with respect to the Controlled Function or Controlled Functions performed, or proposed to be to performed, within the Authorised Person;
        (d) determine the individual's relevant experience; and
        (e) determine the individual's knowledge of the Authorised Person's relevant systems and procedures with respect to the type of business that is to be, or is being, conducted by the individual on behalf of the Authorised Person.

      • GEN 5.6.9

        An Authorised Person must be satisfied that an Approved Person:

        (a) continues to be competent in his proposed role;
        (b) has kept abreast of relevant market, product, technology, legislative and regulatory developments; and
        (c) is able to apply his knowledge.

      • GEN 5.6.10 GEN 5.6.10

        The Authorised Person is responsible for the conduct of its Approved Persons and for ensuring that they remain fit and proper to carry out their role.

        • Guidance

          In considering whether an Approved Person remains fit and proper, the Authorised Person should consider those matters in the GPM and the notification requirements in Rule 8.10.

      • GEN 5.6.11

        Before lodging an application with the Regulator to perform a Controlled Function, an Authorised Person must make reasonable enquiries as to an individual's fitness and propriety to carry out a Controlled Function.

      • GEN 5.6.12

        An Authorised Person must not lodge an application in accordance with Rule 5.6.1 if it has reasonable grounds to believe that the individual is not fit and proper to carry out the Controlled Function.

    • Systems and controls

      • GEN 5.6.13

        An Authorised Person must have appropriate arrangements in place to ensure that an individual assessed as being competent under Rule 5.6.8 maintains his competence.

      • GEN 5.6.14 GEN 5.6.14

        An Authorised Person must ensure, in the case of individuals seeking to perform the Controlled Function of Senior Executive Officer that such individuals are able to demonstrate sufficient knowledge of relevant anti-money laundering requirements.

        • Guidance

          In considering whether individuals have sufficient knowledge of relevant anti-money laundering requirements, the Authorised Person may be satisfied where the individual can demonstrate receipt of appropriate training specifically relevant to such requirements.

      • GEN 5.6.15 GEN 5.6.15

        An Authorised Person must establish and maintain systems and controls which will enable it to comply with Rules 5.6.7 to 5.6.10.

        • GEN 5.6.16

          (1) An Authorised Person must keep records of the assessment process undertaken for each individual under this Chapter.
          (2) These records must be kept for a minimum of six years from the date of the assessment.