The Financial Conduct Authority (FCA) has announced the final rules on a new public register that enables consumers, firms and other stakeholders to find information on key individuals working in financial services
The rules apply to banks, building societies, credit unions and Prudential Regulation Authority designated investment firms (banking firms); insurers and reinsurers; all other firms authorised to provide financial services under FSMA, including limited permission consumer credit firms, such as not-for-profit debt advice bodies and credit unions; and appointed representatives (ARs) acting as agent for FCA authorised firms.
The regulator says publishing this information on a regular basis will enable customers to make sure they only deal with individuals whom an authorised firm has assessed as fit and proper, or otherwise suitable and those who have appropriate qualifications.
The FCA says the directory will enable firms to cross-check references, make their staff known to customers and make it more difficult for unsuitable individuals to operate in the UK market. It will be made public in a clear and easy to use format.
Users will be able to search information on all directors and senior managers; all staff certified as fit and proper by their firm; and other important individuals who undertake business with clients and require a qualification to do so.
Jonathan Davidson, the FCA’s executive director of supervision - retail and authorisations, said: ‘The new directory will help consumers to protect themselves from unauthorised individuals by clearly and easily identifying individuals who have been banned by the FCA. It will also help firms to understand the employment history of candidates when hiring.'
Banking firms and insurers can start submitting data on directory individuals using the FCA’s Connect system or the multi-entry facility around September 2019. All other firms can start submitting data as of 9 December 2019 following commencement of the senior managers and certification regime (SM&CR) for solo-regulated firms.
The FCA will communicate additional information on what firms need to do, including the exact date when FCA systems will open for submissions from banking firms and insurers at a later stage. Firms are required to report timely and accurate information about their directory persons and will need to ensure its accuracy prior to submission.
The directory is expected to go live in March 2020.
FCA policy statement, Finalising the Directory is here.
Report by Pat Sweet
