For authorised persons, we need to look at the firm that is executing the service or function. While some may be one man bands in the retail adviser space, others may be FTSE100 companies. The Financial Services & Markets Act 2000 is the fundamental legislation involved in defining these roles and in accordance with section 31 of the Act (Authorised persons) is defined as any of the following:
( a) a person who has a Part 4A permission to carry on one or more regulated activities;
( b) an incoming EEA firm;
( c) an incoming Treaty firm;
( d) a UCITS qualifier;
( e) an ICVC;
( f) the Society of Lloyd’s.
For that reason the firm can become authorised in it’s own right (see legal entity).
The UK legislation calls for persons performing certain functions (described as “controlled functions”) to be approved by the FCA in advance. These are as follows, and are set out in the FCA Handbook:
For a recently launched company, the FCA is likely to expect a minimum of two senior individuals as being included with the operation and supervision of the UK business.
For wholesale business, there are no longer specific exam requirements. However, companies can however request employees to take exams to satisfy themselves that an individual has the requisite skills, knowledge and proficiency.
How do I become an approved person?
Your firm needs to apply on your behalf.
In an application, your firm will be requested to help prove that an individual carrying on a controlled function:
Please be aware that this is changing in 2019 to the Senior Managers and Certification Regime (SM&CR or SMCR). Please ask for details.
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