Senior Management Function SMF Controlled Function CF Induction Checklist | Role Suitability and Adequacy | Assessment Questions and Auditor Declaration | Template for FCA Applications and Authorised Firms – FCA Authorisations and Compliance

1 SMF/CR Induction Diligence Checklist

AUDIT TYPE: NEW STARTER/EXISTING EMPLOYEE DATE: ________________	NAME OF AUDITOR: _______________ AUTHORISED BY: _________________
1. SMF/CF INDUCTION
ASSESSMENT QUESTION	YES	NO	AUDITORS NOTES

Has the employee completed the Company’s general HR induction in full (applicable to new starters only)?
If the employee is relinquishing an existing position to take on a SMF/CF role, have you ensured that they have been completely removed from that role and are no longer required to perform any previous duties (including in an advisory capacity)?
If performing a SMF role, has the employee been given a Statement of Responsibilities (SoR) and had their specific functions defined and explained?
If the employee has been allocated any Prescribed Responsibilities (PRs), are they fully aware of what those responsibilities are, and what actions/tasks they need to perform?
If performing a CF role, has the employee been issued with a Certificate?
Has the employee been made aware (and provided with a copy of) who has been appointed to the other SMF/CF roles within the Company?
Does the employee understand their reporting lines and who to report to if they breach any conduct rules?
If the employee holds more than one SMF/CF role, have you assessed that there is no conflict of interest and that they have adequate time and resources to perform all functions?
If the role is being handed over by a previous employee, has the Handover Document and Policy been used during the handover period?
Has the employee been provided with a copy of the Responsibilities Map? (enhanced firms only)
Has the employee been made aware that annual FIT tests (including background, credit & CRB checks) will be required?
Has the employee undergone training on the FCA’s Conduct Rules?
Is the employee aware that any disciplinary actions related to breaches of the Conduct Rules will be reported to the FCA?
Have other relevant employees been advised of the appointment to the role and briefed on any provisions they may need to help with or be asked for? (i.e. the accounts team being aware of who is responsible for Money Laundering & financial crime functions)
Have you implemented monitoring procedures to record the employees ongoing training, qualifications, experience and any disciplinary actions (if relevant) so that a compliant and full reference may be provided should the employee apply for a SMF/CR role with a different company?
If the employee is continuing training relevant to their SMF/CF role, has adequate time, resources and cover been provided for them to attend such training and account for any revision periods?
2. ROLE SUITABILITY & ADEQUACY
ASSESSMENT QUESTION	YES	NO	AUDITORS NOTES

Has the employee been monitored performing their SMF/CF role(s) and asked if they feel confident to perform the role?
Are you confident in the employee’s ability to perform the role unsupervised?
Does the employee have access to adequate resources (i.e. staff, time, budget etc) for performing their SMF/CF role?
If the employee holds more than one SMF/CF role, have you assessed that there is no conflict of interest and that they have adequate time and resources to perform all functions?
Have you assessed any current or future training needs relevant to the SMF/CF role?
Does the employee understand how to brief and report to any regulating/governing body about their area of responsibility?
If the role requires any electronic submissions (i.e. via GABRIEL, CONNECT etc), has the employee been trained to use the system and been signed off as competent?
Has the employee’s future holiday requests been reviewed and any relevant cover appointed (where applicable)

Auditor Declaration

Once completed, the auditor should complete the below section and gain Director/High Level Management sign off. A copy of the completed sheet should be retained for 6 years after the review date & should be saved in date format to enable cross-referencing & progress reporting.

Have you dated and saved the completed review in your document control/compliance program? YES ___ NO ___

AUDITOR SENIOR MANAGER

Signed: _______________________ Signed: _______________________

Print: _______________________ Print: _______________________

Date: _______________________ Date: _______________________