How we assess and determine Senior Managers Regime applications
Under section 61 of the Financial Services and Markets Act 2000 (FSMA), we may approve an individual only where it is satisfied that a candidate is fit and proper to perform the Senior Management Function(s) applied for. When considering a candidate’s fitness and propriety, we take into account and must be satisfied of the candidate’s:
- honesty, integrity and reputation, i.e that they will be open and honest in their dealings and able to comply with the requirements imposed on them
- competence and capability, i.e. that they have the necessary skills to carry on the function they are to perform
- financial soundness.
The length of time taken to determine an application will vary, particularly where there is evidence of non-disclosure and/or adverse information, or where an interview is required to assess the candidate’s competence and capability. In these cases, we may require the applicant to submit further information we consider necessary to determine the application. As a result, the statutory clock will be stopped until we have received that information and/or the interview has taken place. Nevertheless, we have a statutory obligation to undertake our review of the application within 90 days of receipt.
We will take a proportionate approach in our assessment of applications, taking into account all matters relating to an individual’s fitness and propriety. Where appropriate, we may also interview candidates as part of our assessment. This is particularly the case for the most senior roles at the largest firms although, at our discretion, we may also choose to interview other candidates.
Where both the PRA and the FCA wish to interview a candidate we will, so far as possible, seek to co-ordinate a single joint interview with the applicant. Both organisations do, however, reserve the right to conduct solo interviews, where appropriate.
If a decision is made to approve the application, we will inform the firm by issuing an approval notice. If the PRA and/or the FCA are minded to refuse the application, the PRA will inform the applicant by issuing a warning notice, which will include details of the appeals process.
During the course of their assessment, case officers may request further information from firms via email to help reach a decision. If the firm does not respond to this request within four weeks, they are considered a ‘non-responder’. We will make further reasonable effort to obtain the required information, but we may reject a non-responder’s application at our discretion if the information is not forthcoming.