Fitness & Propriety Assessment Forms
Who needs to be assessed?
All individuals that are to be appointed in any of the Controlled Functions for a regulated entity must be notified to the Isle of Man Financial Services Authority (“the Authority”) as detailed within the Regulatory Guidance – Fitness and Propriety. The equivalent requirement applies to individuals proposed for a Controlled Function within a licence, authorisation or registration applicant.
Assessable roles for applicants and regulated entities include controllers, directors, the chief executive, head of compliance, principal control officers and managers. The assessment considers the integrity, competence and financial standing of the individual.
For regulated entities (and applicants), the appropriate form will depend on the nature of the Controlled Function. Appendix 2 to the Regulatory Guidance – Fitness and Propriety sets out the types of Controlled Functions, and Appendix 6 details which forms should be used in each case.
Please find below, links to F&P forms:
Please refer to the Regulatory Guidance – Fitness and Propriety for details on which form needs to be completed. For changes in controller of existing regulated entities the following forms are required:
- F&P3 Controller Questionnaire (for Controlled Functions R1)
- F&P4 Intermediate Controller Notification Form (for Controlled Function R3)
The Fitness & Propriety Assessment Privacy Notice can be found here.
Please be aware, if individuals have any spent convictions, these must be disclosed to the Authority by the individual, but not within the F&P Forms. Instead they should be disclosed to the Authorisations Division, under separate cover, directly by the individual. Receipt of these notifications will always be acknowledged, to the individual, by the Authorisations Division.
The Isle of Man has been recognised internationally as a jurisdiction with a robust and effective regulatory environment. A cornerstone of this environment is the knowledge and experience of those individuals working within the financial services sector. The primary responsibility for ensuring that a business is staffed and supported by competent individuals rests with that business.
Individuals undertaking certain key roles for regulated entities are already required to demonstrate to the Authority that they have the necessary competence to undertake that role as part of the Authority’s fitness and propriety criteria. The Authority’s Regulatory Guidance - Fitness and Propriety gives guidance on this criteria which applies both initially on application to become a regulated entity and remains as a continuing obligation.
The Training and Competence Framework sets out the Authority’s detailed expectations of its applicants, regulated entities and their staff in relation to ongoing training and competence, and should be read in conjunction with the Regulatory Guidance - Fitness and Propriety referred to above. The framework is split into two distinct segments:
PART 1 General Training and Competence Requirements – What the Authority expects of regulated entities in relation to the training and competence of all staff; and
PART 2 Controlled Functions and Other Functions - Training and Competence – the additional expectations applicable to individuals undertaking or aspiring to undertake certain Controlled Functions or certain other functions.
When applying the training and competence framework, an applicant / regulated entity should consider the specific risks and needs of its business.
When should notification be given to the Authority?
The Authority must be notified at least 28 calendar days in advance of an appointment to a Controlled Function that is a notified and accepted Controlled Function. The Authority expects that notification will be made by completing and submitting the relevant form.
Please note, the Authority may return any F&P forms that have not been completed correctly or are incomplete. The assessment process will only commence when a properly completed form has been supplied.
Full details of the Fitness and Propriety Assessment Criteria / Forms / and Controlled Functions can be found in the Regulatory Guidance – Fitness and Propriety.
How long does an F&P application take?
The Authority expects to make a determination as to a person’s fitness and propriety within 28 calendar days of a completed form being submitted. It should be noted that should the Authority require additional information or clarification of matters the 28 calendar day ‘clock’ is paused until such information is received by the Authority from the applicant.
Criminal records checks
Before an F&P form is submitted to the Authority in respect of a notified and accepted Controlled Function, a criminal records check should be undertaken. In order for a regulated entity or applicant to satisfy itself as to the integrity of an individual, it must review a certificate that evidences that a BASIC level criminal records check has been carried out on that individual. The Authority expects the check to have been carried out within 12 months of the date of the F&P form. If the criminal records check is less recent (or has not been undertaken), the regulated entity or applicant must provide reasons for this, and this rationale will form part of the Authority’s consideration of the individual’s fitness and propriety.
Please note: the certificate itself should only be supplied to the Authority for controllers or where the controlled function is part of a new licence, authorisation or registration application. The form will be destroyed immediately after the F&P assessment has concluded.
How do I do a criminal records check?
A criminal records check certificate may be obtained by one of the following methods:
- The individual may request a Basic check themselves though the Disclosure and Barring Service, Disclosure Scotland or AccessNI. The certificate will be provided directly to the individual which should be made available to the regulated entity (or an applicant to become a regulated entity);
- If the individual has had a Basic, Standard or Enhanced check undertaken by another party within the last 12 months and the individual is happy to share this with the employer; or
- If the individual is or has been resident outside the UK, please see the guidance at: https://www.gov.uk/government/publications/criminal-records-checks-for-overseas-applicants which will provide details of how to obtain a criminal records check from these jurisdictions.
Please note that the results from a Data Subject Access Request (or similar) made to the Isle of Man Constabulary, is not a substitute to undertaking a criminal records check.
The regulated entity or applicant should consider whether the details provided on the certificate issued by the checking body are consistent with the details stated by the individual within the F&P form, and should also consider whether the details on the certificate impact on its ability to confirm to the Authority that it is satisfied that the individual is fit and proper for the role in which they are proposed.
I have a caution/conviction from some years ago – do I still need to disclose it?
The Authority is exempted from the Rehabilitation of Offenders Act 2001 and so current and spent convictions (which are not protected convictions) must be disclosed:
Where that conviction is not a spent conviction under the Rehabilitation of Offenders Act please select ‘yes’ on the relevant F&P form and include relevant details. The details must be included even if the conviction has been disclosed to the Authority previously.
Where a conviction is spent but is not protected, please select ‘no’ on the relevant F&P form and then send full details of the conviction or caution, separate to the F&P form, in writing and directly to the Head of Policy and Authorisations. All correspondence will be dealt with in the strictest confidence and the Authority will acknowledge receipt directly to the individual in question. Details must be supplied even if they have been supplied to the Authority in previous applications.
For spent convictions which are protected please simply select ‘no’ on the F&P form and no further action is necessary.