What are approved persons?

The UK legislation requires persons performing certain functions (referred to as “controlled functions”) to be approved by the FCA in advance. These are as follows, and are set out in the FCA Handbook:

Governing Functions (Directors, Partners, etc.)
Required Functions (Compliance Oversight, MLRO)
Systems and Controls Function
Significant Management Function (less relevant for a new investment manager)
Customer Functions (eg for those carrying on investment advisory or portfolio management activities)

For a newly established business, the FCA is likely to require (and will require for an AIFM) a minimum of two senior individuals to be involved with the operation and management of the UK business.

For wholesale business, there are no longer specific exam requirements. However, firms can still request employees to take exams to be satisfied that an individual has the requisite skills, knowledge and expertise.