Senior Management Function SMF Controlled Function CF Due Diligence Questionnaire | Verification Evidence and Position Details | Fit and Proper Assessment Review | Template for FCA Applications and Authorised Firms – FCA Authorisations and Compliance

Introduction to Questionnaire

A Senior Management Function (SMF) is a controlled function as specified under the Financial Services and Markets Act 2000 and for which any person performing such a role in a UK-authorised firm and EEA Branch must first be approved by the FCA before starting in the position. People carrying out SMF functions are referred to as Senior Managers and it is essential that such employees or candidates meet the SM&CR regulations and requirements when being assessed and appointed.

Certification Functions (CF) refer to functions that are not Senior Management Functions (SMF), but that can still have a significant effect or impact on the customer, firm and/or market integrity. For such roles, it is again essential that assessments and checks are carried out to ensure that the candidate or employee is fit for purpose and suitable for the role. The FCA does not need to approve appointment to CF roles; however, the Company are obligated to carry out post appointment and then annual checks on CF appointed individuals to ensure that they are still suitable for the position. We will then issue them with a certificate after considering their qualifications, level of competence and training.

The Company utilise this due diligence questionnaire for each SMF and/or CF role being assigned, to ensure that we are verifying, validating and assessing any individual being considered for a Senior Management Function (SMF) or Certification Function (CF) role. We utilise the FCA’s SM&CR criteria when assessing each individual and recognise that having effective due diligence processes in place is essential to the functioning of our business and enables us to ensure that those we recruit or promote to senior management roles are fit for purpose and qualified.

This due diligence questionnaire for the sole use of SMF & CF role assessments and is not to be used for general employee due diligence (please refer to our standard HR due diligence procedures for general due diligence).

[Author Note:] Whilst the criteria for assessing a SMF/CF role is defined by the FCA, how each firm performs such due diligence and any extra checks are bespoke. It is therefore essential that you customise this questionnaire to ensure that it suits your business and permission type, as well as the scope of your obligations. [End Note]

SMF/CF Role Due Diligence Questionnaire

1 Personal Details

Name: ___________________________

NI Number: ___________________________

Address: ___________________________

Telephone No: ___________________________

Email: ___________________________

Date of Birth: ___________________________

2 Verification Evidence

a. Obtain 2 forms of identity verification from the below list*: –

UK Passport
UK/EU Photo Driving Licence
National Identity Card
State Pension/Benefits Book
Armed Forced ID Card

b. Obtain 2 forms of address verification from the below list* (dated within last 3 months): –

Council Tax Statement
UK/EU Photo Driving Licence (if not already used for identity)
Bank/Building Society Statement (excluding online statements)
Mortgage/Rent Statement
HMRC Tax Notification
Utilities Bill – gas, electric, water etc (excluding mobile phone)

3 Position Details

SMF/CF Position: ___________________________

Estimate Date of Appointment: ___________________________

Provided Summary of SMF/CF position being Appointed

_______________________________________

Is the candidate an existing employee?

If yes; existing position: __________________

4 Due Diligence & Fit & Proper Assessment

a. Please attach copies of the below searches/documents:

Regulatory reference covering past 6 years employment (for new employees)
Criminal Record Background check
Credit Check (where financial soundness is required)
Directorship checks (where applicable)

(If you are unable to provide any of these, please provide an explanation as to why)

_______________________________________

b. Have you assessed the individual’s honesty & integrity using the Fitness & Propriety Assessment Record?
YES ___ NO ___

Please provide details of your assessment (attach copy of the Assessment Record and any supporting documents to this questionnaire):

c. Provide details of any relevant qualifications held by the individual:

Attach certificates or relevant documents

d. If the activity being performed requires an appropriate qualification under the FCA’s training & competency requirements (see TC App 1.1), provide details of these below:

Attach certificates or relevant documents

e. What training has the individual undergone (or is currently undergoing) that is relevant to the SMF/CF role being appointed to?

Details of past or ongoing training (including any proposed future training)

f. Results of a Regulatory Background Check (via regulator, professional bodies, government bodies, companies house or agencies etc) to check whether the individual:

i. has any existing or previous investigations or disciplinary proceedings; or has contravened any of the requirements and standards of the regulatory system or the equivalent standards relating to any relevant bodies or regulators
ii. has been the subject of any justified complaint relating to regulated activities
iii. involved with a company, partnership or other organisation that has been refused registration, authorisation, membership or a licence to carry out a trade, business or profession
iv. has been a director, partner, or concerned in the management, of a business that has gone into insolvency, liquidation or administration while the person has been connected with that organisation or within one year of that connection
v. has been investigated, disciplined, censured or suspended or criticised by a regulatory or professional body, a court or Tribunal, whether publicly or privately
vi. has ever been disqualified from acting as a director or disqualified from acting in any managerial capacity

(If there are any relevant findings from the above searches, please provide details)

5 Assessment Review

If appointing to a CF role, has the individual been issued with a Certification Function Certificate?

YES ___ NO ___ N/A ___

If appointing to a SMF role, have you obtained FCA approval to appoint the individual to the role?

YES ___ NO ___ N/A ___

a. Does the individual possess the relevant and required qualifications, skill level, competence training and propriety to perform the position they are being appointed to?
YES ___ NO ___

b. Does the individual have (or will be allocated) adequate time to perform the SMF/CF role and meet the responsibilities associated with that function?
YES ___ NO ___

c. Please describe the measures and controls in place for compliance audits & monitoring to ensure that SMF/CF appointed individuals are supervised and supported:

_______________________________________

Date Completed: _______________________

Completed By: _______________________

Position: _______________________

Signed: _______________________

[Ensure that you attach a completed FIT Assessment Record for each employee undertaking an SMF/CR role.]