The UK Banking Standards Board (BSB), an independent body that promotes high standards of behaviour and competence across the UK banking industry, has published a consultation paper and draft guidance on risks and issues under the UK certification regime which came into force on 7 March 2016 as part of the strengthened PRA and FCA individual accountability regime.
The certification regime requires firms to certify that staff in high-risk roles are fit and proper to perform the role. The draft guidance does not impose any legal or regulatory obligations, but will demonstrate good practice for firms considering their own policies and procedures, and is intended to help firms identify and deal with risks and issues when assessing this fitness and propriety. The consultation follows on from the BSB’s statement of good practice on fitness and propriety assessment principles, published in February 2017.
The guidance includes:
- Factors to consider when evaluating the evidence used in assessing fitness and propriety.
- An overview of the options available to firms in making certification decisions.
- Examples of dealing with certification risks and issues.
- Good practice in recording the outcomes of a fitness and propriety assessment.
The BSB is seeking comments by 29 September 2017, after which it will publish a final version.
While not binding, the publication of the BSB’s guidance will help firms to understand market practice relating to assessing fitness and propriety under the UK certification regime when considering their own polices and procedures.
If you have any questions, please do get in touch – we are delighted to help!
Janet and Matthew