Where the firm is satisfied the Certified Person continues to be FIT, they can continue to be listed on the FCA‘ Directory’ of certified and assessed persons.
The Directory
The Directory contains details about specific individuals working in financial services. This information is available via a firm’ s entry on the Financial Services Register. The Directory was designed to improve standards in the market that will benefit both firms and consumers by:
• enabling customers to verify the identity of those selling or providing advice to help protect themselves from scams.
• re-assuring customers to the suitability of the staff they are dealing with at the firm.
• helping firms cross-check regulatory references when recruiting; and
• making it more difficult for unsuitable individuals to operate.
The type of information published on the Directory includes:
• roles with start and end dates
• activities undertaken
• customer engagement methods
• workplace location( where relevant)
• memberships of professional bodies
‘ Directory Persons’ is the term used by the FCA for the people that will appear on the Directory. This includes three categories of people:
• Certified Persons e. g. individuals giving mortgage advice, retail investment advice, and pension transfer specialists.
• Directors who are not Senior Managers( likely to be non-executive directors)
• Sole Traders and Appointed Representatives who require a qualification to carry out their role.
It is important that your Directory Persons’ data is accurate. If your information is showing as incomplete or out-of-date, it can give a poor impression of your business. Firms are required to‘ attest’ the FCA that their Directory Persons’ data is up to date and accurate at least every 12 months. If there have been changes to your firm’ s Directory Persons, this must be completed within seven business days of the change taking place.
Firms are required to‘ attest’ the FCA that their Directory Persons’ data is up to date and accurate at least every 12 months. If there have been changes to your firm’ s Directory Persons, this must be completed within seven business days of the change taking place.
Potential changes following the Mansion House Speech
Eagle-eyed observers of the regulatory policy may have noticed that the certification regime is up for review, with regulatory bodies to be asked to consider how it might be subject to reform. It is true that the Certification Regime can seem in some respects overly complicated and prescriptive.
Whilst the framework that sits around the process is up for review, the concept of ensuring all staff are reputable and competent for their roles will remain. If anything, following the introduction of Consumer Duty and the requirement to monitor and evidence outcomes, this will only increase in prominence.
This includes the process of assessing staff as Fit and Proper by looking at Honesty Integrity, Financial Soundness, and Competence and Capability. Not carrying out these ongoing checks would expose a business to significant risk.
Any future reform will be subject to ongoing consultation, and, for the moment, the Certification Regime continues to be an important feature of the current regulatory framework. Regardless of any future reform, the requirement for firms to ensure staff are FIT and competent on an ongoing basis will remain and, if anything, has been stepped up as a result of the shift to the new Consumer Duty world and the requirement to deliver good outcomes.
To find out more about Fit and Proper Checks, and how we can help you make sure you’ re on top of the requirements, get in touch with our Business Support Team on 0141 616 4161 option 2 or at businesssupport @ simplybiz. co. uk
It should be noted that only individuals that have been assessed as FIT should appear on the Directory.
April 2025 | 15