INDI 4.1.5 How firms to make fitness assessments
(1) In deciding whether an individual is a fit and proper person to perform the customer-facing function, an authorised firm must take into account:
(a) the individual's honesty, integrity and reputation; and
(b) the individual's financial soundness.
(2) For paragraph (1) (a), the firm must take into account the following matters about the individual's honesty, integrity and reputation:
(a) any past, ongoing or pending legal proceedings, whether civil or criminal, relating to or involving the individual;
(b) any investigation undertaken, disciplinary action taken, or sanctions imposed, in relation to or on the individual by a court, tribunal, regulatory or governmental agency, body or authority, exchange, clearing house, self-regulatory body or other professional body;
(c) any complaint against the individual relating to, or any contravention by or involving the individual of, any financial services legislation (including any regulations, rules, statements of principle or codes of practice made by an exchange, clearing house, self-regulatory body or other professional body);
(d) any complaint made about the individual's standard of conduct in relation to activities subject to regulation inside or outside the QFC;
(e) the individual's involvement with any business that:
(i) was wound up or put into liquidation, placed in receivership or administration, ceased trading, negotiated a settlement with creditors, or became insolvent:
(A) while the individual was involved with the business; or
(B) within 1 year after that involvement ended;
(ii) had any approval, authority, licence, registration or other permission to conduct business removed, restricted or suspended;
(iii) has been refused any approval, authority, licence, registration or other permission to conduct business;
(iv) has been expelled by any regulatory or governmental agency, body or authority; or
(v) has been investigated, criticised, disciplined, censured or suspended by any regulator, professional body or tribunal, whether publicly or privately;
(f) whether the individual has been dismissed, or has been asked to resign and has resigned, from a position of trust or fiduciary appointment;
(g) the effect that the individual's reputation may have on the authorised firm and the QFC;
(h) whether the individual has been candid and truthful in dealing with the authority.
(3) For paragraph (1) (b), the firm must take into account the following matters about the individual's financial soundness:
(a) whether the individual is able to pay debts as they fall due;
(b) any arrangement that the individual has made with creditors;
(c) whether the individual has filed for bankruptcy, been served with any bankruptcy petition or been subject to any bankruptcy order;
(d) whether the individual has had assets seized, confiscated or frozen.
(4) In deciding whether an individual is a fit and proper person to perform the customer-facing function, the firm may also take any other relevant matter into account.
|Derived from QFCRA RM/2014-5 (as from 1st January 2015)|