Fit and Proper Persons - Meeting the Criteria (February 2024)

Summary

This guidance from the Guernsey Financial Services Commission explains how it assesses whether individuals holding a supervised role meet the Fit and Proper standard required under the Bailiwick's Regulatory Laws and the Minimum Criteria for Licensing. It is aimed at individuals who hold or intend to hold a supervised role, and at the entities that employ or propose to employ them.

• Competence: Skills, knowledge, experience, understanding of the business model and regulatory obligations, and sufficient time to perform the role.
• Probity: Integrity, honesty, reputation, conflicts of interest, conduct history, convictions, pending cases, and prior regulatory actions.
• Solvency: Financial soundness, including any bankruptcy or analogous proceedings or creditor compromise arrangements.
• Business practices: Previous conduct that may cast doubt on competence or soundness of judgement.
• Assessment methods: The Commission reviews the Online Personal Questionnaire, notifications from licensed firms, supervisory engagement and thematic reviews, and publicly available information and third-party due diligence.

The note sets an expectation that licensees (current or proposed) assess individuals against the Fit and Proper standard both at appointment and on an ongoing basis, and have processes in place to identify shortfalls. It is explicitly non-exhaustive, general guidance rather than legal advice, and may be updated to reflect changes in law or court guidance.

Key obligations

• Licensed firms and applicants must assess individuals proposed for, or holding, a supervised role against the Fit and Proper standard, both at the outset of appointment and on an ongoing basis.
• Licensees must have processes in place to identify where an individual does not meet the Fit and Proper standard.
• Notification of any issues affecting a supervised role holder's fitness and propriety must be made to the Commission on a timely basis.

Applies to

licensed firms (banks, insurers, funds, trust service providers and other licensees under the Regulatory Laws), individuals in supervised roles, applicants for supervised roles

Deadlines

• on a timely basis: Notification to the Commission of any issues affecting a supervised role holder's fitness and propriety