360-degree fitness and propriety

The regulator is grappling with a backlog of approved persons applications, while employers are playing an amplified role as arbiters of fitness and propriety issues under the SMCR. The stakes have never been higher for financial services employees to avoid possible misconduct both in and outside of work, write James Alleyne and Natasha Forman.

James Alleyne (jalleyne@kingsleynapley.co.uk) is a legal director in the Criminal Litigation team at Kingsley Napley; Natasha Forman (nforman@kingsleynapley.co.uk) is a senior associate in the Employment team, where Georgia Roberts (groberts@kingsleynapley.co.uk) is an associate.

Under the Senior Managers and Certification Regime (SMCR), which was introduced by the Financial Conduct Authority to seek to remedy perceived industry-wide failings following the 2008 financial crash, regulated staff must meet certain standards of fitness and propriety, and will be personally accountable to the FCA for any failure to do so.