Shearman & Sterling LLP | FinReg | UK Banking Standards Board Publishes Fitness and Propriety Assessment Principles
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  • UK Banking Standards Board Publishes Fitness and Propriety Assessment Principles

    The Banking Standards Board has published the Statement of Good Practice 1 on the Certification Regime: fitness and propriety assessment principles and Supporting Guidance for the Statement of Good Practice. The BSB was launched in April 2015 to help raise standards of behavior and competence in the banking sector. The Certification Regime, part of the regulatory reforms introduced in the UK to strengthen individual accountability, requires firms to certify that all individuals in roles which pose a risk of significant harm are "fit and proper". The first certification process was due to be completed by March 7, 2017 and thereafter firms must conduct assessments on an ongoing basis. The Statement of Good Practice 1 is a high-level set of principles relevant to the assessment of fitness and propriety which aim to assist firms in effectively implementing the requirements of the Certification Regime, to raise industry standards and ensure that assessments are fair, consistent and transparent. The Supporting Guidance includes definitions of each element of fitness and propriety (honesty and integrity, reputation, competence and capability and financial soundness), an overview of different types of assessments and an assessment record template.

    The BSB intends to produce more supporting guidance relevant to the Certification Regime. The guidance will relate to identifying and evaluating risks and issues related to certification, assessing the fitness and propriety of individuals working outside the UK or moving to the UK and considerations when sharing information about certified individuals when they move between firms.

    View the Statement of Good Practice.

    View the Supporting Guidance.