FCA regulated screening explained

The FCA (Financial Conduct Authority) regulates over 50,000 organisations and aims to ensure that financial markets are honest, fair and effective. As part of this, the FCA requires everyone who holds a position of responsibility within the financial sector to become an “approved person.”

Approved person function is not simply restricted to banks and building societies. It is also applicable to insurance companies, retail intermediaries, consumer credit firms, payment services and financial investment companies and any suppliers to regulated companies. The list of roles which the FCA require screening and approved person status is lengthy, but it can be applicable to anyone who accept deposits, enters into, advises or arranges mortgages or other investments, affects or carries out insurance contracts or gives financial advice.

In order to be granted approved person status, employees must be subject to a number of controlled checks which are designed to determine the candidate’s honesty, competence, capability and financial soundness, as well as carry out their functions according to FCA guidelines.

• “Fit and Proper” Test – this ensures that the candidate can meet and maintain the required criteria for approval (and report anything that could affect ongoing suitability)

• Compliance with Statement of Principle

• Compliance with Code of Practice

• Having carried out and passed FCA screening test

• Checks must be applied for by employing company on behalf of the employee

The FCA screening test is a comprehensive screening test which includes full ID verification and Right to Work status, 5 years of employment history which must be validated and gaps analysed, highest qualification verification, a DBS criminal records check, a financial check (including credit report, CCJ’s and bankruptcy check), FCA register verification and disciplinary validation and a UK directorship and disqualification check.

FCA screening can be a time consuming and complicated process. Using a reputable screening provider can reduce the time it takes to carry out the checks and can cut turnaround times to as little as 24 hours. In addition, using a screening company ensures a consistent and compliant process.