Approval process
Related information
Forms relevant to the Supervision manual in the FSA Handbook
Supervision forms
Applications for approval: Our approach to adverse disclosures
Applications for Approval [PDF]
The FSA deals with many applications for approval for controlled functions each year. These applications are from new firms applying for authorisation and from existing authorised firms seeking approval for additional approved persons in the firm.
The application to approve an individual is made by the firm (‘the applicant’), but is countersigned by the individual ('the candidate'). Before the firm submits the application, it must verify the information in it. As part of this verification, the candidate is required to sign the form to confirm the accuracy of the information given by the firm so far as it relates to him.
It is important to remember that it is firms who make application to the FSA for approval of an individual. Hence, the onus is on the applicant to provide sufficient information on the Application Form (Form A) to satisfy the FSA that the candidate is fit and proper. This should include details of the due diligence undertaken, the recruitment, interview and appointment process and details of the rationale the firm has used to conclude that the candidate is fit and proper to perform the role for which approval is sought.
Our approach to adverse disclosures: Applications for Approval [PDF]
A firm is required to disclose all matters relating to a candidate’s fitness and propriety. If a firm is not sure whether something may have an impact on a candidate’s fitness and propriety, the information should be disclosed. The FSA takes non-disclosure of material facts very seriously and may consider it to be evidence of current dishonesty. If in doubt, disclose.
In the event that a candidate discloses adverse information to the applicant (or the applicant knows of adverse information by some other means) the firm has a duty to disclose that information to the FSA.
The FSA has a statutory obligation to determine applications within three months. However, we have made a commitment in our published service standards that we will try to complete the processing of 85% of applications within two, four or seven days (excluding the day of receipt) depending on the nature of the application.
In ‘non-routine’ cases, the processing of applications will take longer and if we ask for more information. the statutory clock is stopped until that information is received.
As part of the approvals process, the FSA will normally interview candidates for Chair, Chief Executive, Finance Director, Risk Director and some Non- Executive Director posts in High Impact firms. We may also, at our discretion, interview candidates for other significant influence functions and other firms.
Where, following an interview or otherwise, we decide to grant an application, we shall give written notice of our decision to the firm and the candidate. Any public announcement prior to receipt of this confirmation must state that the appointment is subject to regulatory approval.
If we propose to refuse an application, we give a warning notice to both the applicant firm and the candidate. They may then choose to withdraw the application or, alternatively, to make written or oral representations to the Regulatory Decisions Committee of the FSA. If, following consideration of these, we decide to refuse the application, then the applicant firm, the individual candidate, or both, have a right to refer the refusal to the Financial Services Tribunal.
| Annex | Approved Persons - Chapter 10 |
|---|---|
| 4D | Long Form A - UK and Overseas Firms (not EEA) [DOC] Long Form A - Incoming EEA only [DOC] Short Form A - UK and overseas firms (not EEA) [DOC] Short Form A - Incoming EEA only [DOC] |
| 5R | Form B [DOC] Notice to withdraw an application to perform controlled functions under the approved persons regime Notes [DOC] |
| 6R | Form C [DOC] Notice of ceasing to perform controlled functions Notes [DOC] |
| 7R | Form D [DOC] Notification of changes in personal information or application details Notes [DOC] |
| 8D | Form E [DOC] Internal transfer of an approved person Notes [DOC] |
