What is Fitness and Propriety?
Standards of fitness and propriety is an underlying concept in the SM&CR regime and in relation to persons approved by the FCA and PRA. Whether the body concerned considers an individual to be fit and proper to fulfil the specified role will depend on an assessment by reference to the following factors:
- The individual’s honesty, integrity and reputation;
- The individual’s competence and capability; and
- The individual’s financial soundness.
If an individual has a finding of gross misconduct or is otherwise found to have breached the FCA’s conduct rules, this may result in the individual ceasing to be fit and proper, which prevents them from being employed in any senior management roles within FCA-regulated firms.
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