What is an approved person?
An approved person is an individual who has been approved by the PRA and/or the Financial Conduct Authority (FCA) to perform one or more Controlled Functions on behalf of an authorised firm.
Under section 59 of the Financial Services and Markets Act 2000 (FSMA), authorised firms are required to ensure that individuals seeking to perform one or more of the PRA–designated Controlled Functions seek PRA approval prior to taking up their position. Non-approval prior to taking up the role may lead to enforcement action against the firm and/or the individual.
Please note: Firms should only use the forms on these pages if they are seeking approval for persons under the Approved Persons Regime who will be eligible for grandfathering to the new Senior Managers Regime (SMR) or Senior Insurance Managers Regimes (SIMR) on 7 March 2016. Firms are reminded that the grandfathering form (Form K) must be submitted by 8 February 2016.
For new applications, where approval is being sought for relevant individuals taking up roles and responsibilities after 7 March 2016, please use the forms available on the SMR – Forms and SIMR – Forms pages.
Firms should only apply to the PRA for approval of PRA-designated Controlled Functions at dual-regulated firms. For a list of PRA designated Controlled Functions, see the document ‘PRA-designated Controlled Functions’ under Key Resources.
For dual-regulated firms, the PRA leads the assessment of applications for the approval of the PRA-designated Controlled Functions. The authorisation of an individual to carry on PRA-regulated activities will not be granted unless both the PRA and the FCA are satisfied that it should be. The FCA is required to give its consent to the PRA before any final decision can be made on an application. More information on the application process can be found on the Submitting, assessing and determining an approved persons application page.
All approved persons must comply and meet on an ongoing basis:
(i) The Statements of Principle and Code of Practice for Approved Persons set out in the APER section of the PRA Handbook.
(ii) The fit and proper test for Approved Persons, set out in section 61 of FSMA. The FIT section of the Handbook provides further guidance on what the PRA will take into account when assessing individuals against this. Approved persons must inform their firm and the PRA of any matter that may impact their ongoing fitness and propriety.
The PRA has the power under FSMA to take disciplinary action against an individual approved to perform a controlled function where an individual acts in a manner inconsistent with APER or if an individual knowingly consorts in a breach of rules by their firm. This action may include a fine, a suspension of the approval, imposing restrictions or issuing of a public statement relating to the misconduct.
Where the PRA believes that a person is no longer fit and proper to perform the function, approval may be withdrawn or the individual may be prohibited from holding Controlled Functions in the future.