GENE 2.1.1 Guidance

1. FSR, article 29 provides the Regulatory Authority with the power to make rules setting out the criteria which an applicant must satisfy before authorisation can be granted. The FSR states that such criteria shall include the fitness and propriety, legal form, resources, systems and controls and location of offices of an applicant.
2. The purpose of fitness and propriety criteria is to set out the minimum criteria that a person must meet for it to become and remain Authorised. It also enables the Regulatory Authority to ensure that its regulation of authorised firms is not impeded as a result of:
a. the authorised firm's group structure or internal administration;
b. any other laws, regulations or administrative provisions of another jurisdiction to which the authorised firm is subject; or
c. an inability or unwillingness to comply, on an ongoing basis with the requirements imposed by the regulatory system.
3. The fitness and propriety criteria summarises some of the areas that the Regulatory Authority will consider during the assessment of an applicant for authorisation. Also, as part of its supervisory approach, the Regulatory Authority will monitor whether an authorised firm continues to meet the fitness and propriety requirements. Under Article 31, the Regulatory Authority may impose conditions or withdraw the authorised firm's authorisation if it fails to satisfy the criteria in Article 29.
Editorial changes (as from 1st January 2016).