6 The Approval and Regulation of Individuals

Subject(s):

Approved person — Senior Persons Regime

This chapter concerns the approval and the regulation of individuals—specifically the senior management and customer-facing staff of a firm. Following the collapse of institutions such as Northern Rock (2007), it was agreed that the regulator should engage more intensively with firms over senior management’s competence and technical skills. This chapter considers the requirement for approval, the application process for approval, the possibility of withdrawal of approval, and the penalty for performance of a controlled function without approval. It then considers the Financial Conduct Authority’s (FCA) power to prohibit an individual from performing certain functions, or to take disciplinary action against an individual guilty of misconduct. Finally, the FCA and Prudential Regulatory Authority’s (PRA) ability to make rules of conduct, and the application of the Statements of Principle and Code of Practice for Approved Persons (APER), are discussed.