Approved persons
Related information
MiFID practical guide
MiFID Permissions and Notifications guide [PDF]
An approved person is an individual who has been approved by the FSA to perform one or more 'controlled functions' on behalf of an authorised firm.
The purpose of the direct approval of individuals who perform controlled functions is to complement the regulation of the authorised firm for which the approved person(s) performs the function.
An individual cannot be approved in advance of a firm becoming authorised, but the application will be co-ordinated to ensure that the approval coincides with the giving of permission to the firm.
Approval must be obtained before a person can perform a controlled function.
Consequences of Approval
The standards of conduct expected of an approved person are set out in a Statements of Principle document and a Code of Practice.
The Statements of Principle document sets out the conduct expected of an individual once approval is granted. There are 7 principles, 4 applying to all approved persons and 3 applying to persons who carry out significant influence functions.
The Code of Practice sets out examples of generic conduct which, in the FSA’s opinion, does not comply with the Principles and also contains guidance.