At least one individual in most consumer credit firms must be ‘approved’ by us. Read more about approved persons.
An ‘approved person’ is an individual we approve to perform one or more activities on behalf of an authorised firm. These are activities we refer to as ‘controlled functions’.
At least one individual in all consumer credit firms (except most providers of not-for-profit debt advice and some sole traders) must be approved by us. This individual will be the approved person for your firm.
We can approve an individual only if we are satisfied they are fit and proper to perform the controlled function(s) they apply for.
When considering a candidate’s fitness and propriety, we look at:
- honesty (including being open regarding any self-disclosure)
- integrity and reputation
- competence and capability
- financial soundness
Responsibilities of approved persons
Being an approved person brings with it several important responsibilities. These include a duty to be aware of – and comply with – our regulatory requirements and understand how they apply to the carrying out of each controlled function.
More specifically, approved persons must:
- comply with and continue to comply with our Fit and Proper test for Approved Persons
- comply with the Statements of Principle, which describe the conduct we require and expect of individuals we approve, and the Code of Practice for Approved Persons
- report to the firm and to us any matter that may affect the firm’s ongoing fitness and propriety
Twelve controlled functions potentially apply to consumer credit firms, depending on their business and legal status. Controlled functions need to be carried out by approved persons who are closely involved in running the firm.
It is unlikely you will be able to outsource these roles and still meet the standards we expect, although we will assess this case-by-case. You can, however, outsource any resources you need for the guidance and support of approved persons.
The number of roles your staff will need to be approved for will depend on the type of credit activities you intend to carry out, the legal status of your business and the permissions you require.
Firms with limited permission will normally only need to appoint one person.
You can be an approved person for more than one function in your firm, but you will need to demonstrate in your application that you have the ability to manage multiple roles. We will consider your application in the context of the scale of your firm and the activities it plans to undertake.
You can also be an approved person for more than one firm. Again, we will consider your application against how you plan to do this, including how you will manage the risks associated with being an approved person for more than one firm.
We also have further information on approved persons for regulated firms.