In August 2009, amendments to the FSA Handbook came into effect which changed how the FSA approves and supervises persons performing SIFs, introducing procedures to interview, at its discretion, candidates applying to perform certain SIF roles in certain firms and placing greater emphasis on monitoring the performance of persons already performing such roles.
The letter reminds CEOs that the responsibility to assess whether a candidate is fit and proper to carry out a role rests with the firm and that firms should have robust recruitment, referencing and due diligence processes in place.
The letter outlines the FSA’s expectations for the application process for new SIFs. Such applications are to be submitted in good time, at the point of a shortlist being drawn up rather than when a preferred candidate emerges, and with sufficient information, including supporting documents and the reasons why the candidate is fit and proper to perform the role. The range of issues likely to be addressed at interview are also outlined.
