• 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.