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12.1.4 Suitability

The company confirms that its Directors, Senior Management and employees are fit, proper and suitable to provide the services and carry out the activities for which they are regulated. Where applicable, this means that the relevant staff, Approved Persons and employees holding Controlled Functions have the skills, qualifications, knowledge and experience to carry out their defined job roles as governed by the firm and any regulatory bodies.

12.1.5 Business Model

The company confirms that our business model (strategy for doing business) is suitable for carrying out the activities for which we are regulated and seek to carry on. When considering our suitability under this FCA handbook section, we have considered: –

  • the interests of any consumers with who we conduct our business and the identification of any risks associated with them
  • the integrity of the UK financial system
  • Whether our business is conducted in a fair, sound and prudent manner.
  • the expectations of any stakeholders, regulators and/or shareholders
  • the products and services that we offer and our ability, suitability and expertise in providing them
  • our growth strategy and any risks associated with this
  • The procedures, governance and controls that we have in place to ensure compliance with rules and obligations under the regulatory, statutory, contractual and legislative systems.

12.2 Threshold Conditions Policy & Controls

1. Policy Statement

The company are committed to ensuring that we abide by the FCA and legal regulations applicable to our business type and activities at all times. We understand and agree that the Threshold Conditions, as laid out below, are to be met, monitored and maintained by our company and staff at all times and this policy sets out our aims and objectives to this end.

In accordance with Schedule 6 of the Financial Services and Markets Act 2000 and the COND module of the FCA Handbook, the company ensures that we have adequate and appropriate controls, measures, procedures and systems in place to meet the Threshold Conditions whilst carrying on any regulated activities. the company is committed to a constant process of review, whereby we monitor and record the size, scale, scope, nature and complexity of the business on a continual basis to ensure that the minimum standards and regulatory expectations are being met at all times.

2. Purpose

The purpose of this policy is to ensure that the company is meeting the minimum Threshold Conditions based on the size, scale, scope, nature and complexity of our business and that the FCA regulations are complied with at all times. We also have this policy and procedure document in place to comply with our legal obligations under Schedule 6 of the Financial Services and Markets Act 2000 and provide our staff with frequent training sessions and compliance updates to ensure their knowledge and understanding of the Threshold Conditions and how they apply to the company.

3. Scope

The policy relates to all staff (meaning permanent, fixed term, and temporary staff, any third party representatives or sub-contractors, agency workers, volunteers, interns and agents engaged with the company in the UK or overseas) within the organisation and has been created to ensure that staff deal with the area that this policy relates to in accordance with legal, regulatory, contractual and business expectations and requirements.

4. What Are Threshold Conditions?

The Threshold Conditions are the minimum conditions for which the FCA is responsible and which a firm is required to satisfy under the regulatory system. They are contained in Schedule 6 of The Financial Services and Markets Act 2000 which came into force on 1st April 2013 and are set out in detail in the COND module of the FCA Handbook.

As a firm regulated by the FCA, the company is obligated to comply with all Threshold Conditions and must be able to demonstrate to the FCA that we meet each Threshold Conditions minimum requirements at all times. As such we have in place controls, measures and/or procedures that enable us to meet and maintain compliance with the conditions whilst carrying on any regulated activities.

The 5 Threshold Conditions are: –

  • Location of Offices
  • Effective Supervision
  • Appropriate Resources
  • Suitability
  • Business Model

5. Policy Objectives

the company has laid out the below objectives and aims which ensure that we comply with and adhere to the Threshold Conditions whilst trading. All staff are aware of these objectives and we ensure that frequent and continuous reviews and audits are carried out in each threshold area so that we continue to remain compliant with The Financial Services and Markets Act 2000 and the FCA regulations.

The company uses the below objectives to meet the regulatory requirements of COND and to develop procedures and controls for maintaining compliance at all times.

The company ensures that: –

  • Our head office and any associated registered office/s are located in the United Kingdom
  • We are capable of being effectively supervised by the FCA, with emphasis on: –
    • The nature of the business
    • The complexity of the business
    • The way in which the business is organised
  • Adequate and relevant information is available to the regulator regarding our compliance with the Threshold Conditions. The information is such that it enables the FCA to assess and determine whether we are compliant in all areas.
  • We have the appropriate and adequate resources in place to effectively carry out our regulated activities.
  • Such resources are monitored and reviewed on a continual basis to maintain compliance.
  • We have an up-to-date and working Business Continuity Plan in place.
  • We have an up-to-date risk register and risk assessment procedures in place, both of which are reviewed on a [weekly/monthly/quarterly/annual] basis.
  • We always have access to adequate capital to support the business including any losses which may be expected during any period and that client money, deposits, custody assets and policyholders’ rights are not placed at risk if the business should fail.
  • All Directors, Senior Managers and persons carrying out Approved Persons functions, are fit for purpose and suitable for the role/s.
  • All above persons and members of staff have the adequate, appropriate and relevant skills, qualifications, knowledge and understanding to act with probity and to fulfil the regulatory requirements.
  • All employees of the company receive regular and continual training, coaching and assessments with regards to their specific job roles and any associated regulatory requirements.
  • We have adequate procedures, controls and tools for minimising the risk of financial crime, including policy documents on managing Conflicts of Interest and Remuneration & Incentives.
  • the company’s affairs, functions and activities are conducted in an appropriate manner, having particular regards to the interests of consumers and the integrity of the UK financial system.
  • Both our recruitment and selection procedures and the processes for appointing 3rd parties and/or suppliers, contain adequate due diligence checks and identity assessments, including background and financial status checks.
  • Our Business Model is suitable and appropriate for the type of regulated activities that we carry out. The Business Model ensures that: –
    • We carry out all functions and activities in a sound and prudent manner
    • We have the interests of consumers and customers at the heart of the business
    • We ensure the integrity of the UK financial system
  • When creating the company’s Business Model, we have ensured that the below areas have been considered and addressed to guarantee that it satisfies paragraphs 2F and 3E of Schedule 6 of The Financial Services and Markets Act 2000 and COND 2.7.1 of the FCA Handbook: –
    • The assumptions underlying our business model and justification for it
    • The rationale for the business we propose to do or continue to do, its competitive advantage, viability and the longer-term profitability of the business
    • The needs of and risks to consumers and/or customers
    • The expectations of stakeholders, including any shareholders and regulators
    • The products and services being offered and product strategy
    • The governance and controls we have in place as well as any member of our group (if applicable)
    • The growth strategy and any risks arising from it
    • Any diversification strategies
    • The impact of the external macroeconomic and business environment
  • Where any additions or adjustments are made to the business model, they: –
    • Are approved at an appropriate level in the business
    • Are considered in the light of any potential risks, impacts and consequences of the proposed changes
    • Appropriately consider the needs of and risks to clients and relevant consumers

6. Measures & Controls

To ensure that the company complies with the Threshold Conditions at all times, we have the below procedures and controls in place to ensure that we meet and maintain the minimum standards as set out in Schedule 6 of The Financial Services and Markets Act 2000 and COND 2.7.1 of the FCA Handbook.

6.1 Location of Offices          

The company confirms that it has its main office and any registered office located in the United Kingdom and that our business is carried out within the United Kingdom.

For the purposes of this document, the company defines our main Head Office as the place where our Senior Management and Control functions take place and where the material day-to-day decision are made.

Head Office                                                                 Registered Office

_______________________________                      _______________________________

_______________________________                      _______________________________

_______________________________                      _______________________________

_______________________________                      _______________________________

6.2 Effective Supervision      

The company confirms that it has the appropriate operational procedures, business functions and organised structured to enable the effective supervision of the firm by the FCA.

This includes being effectively supervised in relation to: –

a) the nature (including the complexity) of the regulated activities that we carry on or seek to carry on

b) the complexity of any products that we provide or will provide in carrying on those     activities

c) the way in which our firm is organised

We aim to operate in a clear and transparent manner at all times and have clear and defined procedures and controls in place to ensure that we comply with any and all rules under the regulatory system and that those procedures and controls can be audited by the regulator at any given time.

Where the company has any close links with a 3rd party, including lead generators, suppliers, group members and outsourced providers, we always adhere to our strict due diligence checks prior to creating a business relationship. A record of all 3rd party links is maintained and kept up to date, with a preferred and secondary supplier list being used.

6.3 Appropriate Resources   

The company confirms that our resources are appropriate for the products and/or services that we offer and that such resources are monitored and reviewed on a frequent basis to ensure that they remain appropriate and proportionate to the needs of the firm.

The appropriateness of our resources is measured in direct relation to the nature and scale of our business, considering the nature of the products/services that we provide. Resources are maintained to prevent any risks to the continuity of the services provided.

We confirm that we have adequate financial resources to carry on our business activities and functions and we are capable of meeting any creditor agreements as and when they fall due. Our financial stability is also capable of providing the skills, support and training to our staff to ensure that we can manage our affairs and provide a high-quality service and/or product to our clients and customers as well as being compliant with all regulatory requirements.

6.3.1 Risk Assessment

As regulated under FCA Handbook sections SYSC 4.11 and SYSC 7.1, the company has procedures, systems and controls in place to identify, manage, report and mitigate against risks. These include carrying out risk assessments on all systems and business activities and recording the finding on our Risk Register.

We also use a Risk Matrix to assign each risk an impact and probability rating, which enables us to tier all risks and create mitigating processes to minimise the likelihood of a risk occurring.

Both internal and external risks are identified, assessed and recorded by the firm, in addition to all new procedures, new business activities and new systems which are risk assessed in a hypothetical manner prior to implementation.

Please refer to the full Risk Management Program of documents for our complete procedures on identifying, assessing, reviewing and monitoring risks.

6.3.2 Business Continuity

The company’s Business Continuity Plan has been created to ensure that in the event of any disruption to business, we are able to prepare for and cope with the effects, complying with the Threshold Conditions and minimising the risk to consumers. The aim and intention of the plan is to restore ‘business as usual’ in a quick, effective and non-disruptive manner, regardless of the cause of disruption or crisis.

The company’s policy is to respond to any business disruption, emergency or crisis by safeguarding employees’ lives and firm property, mitigating risks to customers, continuing to comply with regulatory requirements whilst making financial and operational assessments and quickly recovering and resuming normal business operations.

We are prepared for both internal and external disruptions in our BCP provision and take every measure and precaution to ensure that any disruption to our normal business function is mitigated against and prepared for. It is our aim that no customer is caused undue harm or inconvenience by any disruption that we may incur.

The objectives of the Business Continuity Plan are: –

  • Understand the critical functions and activities of the organisation
  • Meet the Threshold Conditions of COND
  • Analyse and respond to any risks to the organisation
  • Provide a detailed, prioritised and timetabled response to an emergency situation
  • Identify the key roles, responsibilities and contacts to respond to an emergency
  • Mitigate risks to customers and any service provision
  • Maintain effective running of the business in the event of a crisis or emergency

Please refer to our full BCP for exact procedures and measures.

6.4 Suitability

The company confirms that its Directors, Senior Management and employees are fit, proper and suitable to provide the services and carry out the activities for which they are regulated. Where applicable, this means that the relevant staff, Approved Persons and employees holding Controlled Functions have the skills, qualifications, knowledge and experience to carry out their defined job roles as governed by the firm and any regulatory bodies.

All business affairs are carried out in a sound and prudent manner and with the skills and expertise as required by the business type and regulating system.

6.4.1 Competence

The company confirms that any employee who has been recorded as being competent to carry out a specific business task or function, has previously been assessed to ensure any such competence exists, and where applicable, we have ensured that the employee has the appropriate and required qualification to perform their job role satisfactorily and within the regulatory requirements.

Where a business activity has been defined the TC Appendix 1 of the FCA Handbook, the company confirms that any staff carrying out such tasks or functions are supervised at all times and that any such supervisor has the necessary coaching and assessment skills to perform a supervisory role.

Staff will not provide advice to clients or customers without first being assessed as competent to do so.

Compliance training workshops and sessions are provided on a [weekly/monthly/quarterly] basis, followed by training feedback forms to review the delivery and method of training are suitable; also, employee assessment tests to assess, review and monitor knowledge, understanding and compliance with each trained area.

Please refer to our Recruitment & Selection Documents, Inductions Plans and Training & Development Procedures for exact measures and controls used to assess, review and maintain staff competence and suitability at all times.

6.4.2 Assessing & Maintaining Competence

The company uses the below tools to assess the knowledge, suitability and competence of its staff. These tools are used on a rolling, ongoing basis to ensure that competence is maintained and that the staff member is able to perform the duties in accordance with their regulatory and business expectation and obligations.

[Add/Delete as applicable*]

  • Assessment Quizzes
  • Coaching Sessions
  • One-2-One Discussions
  • Audit Checklists
  • Call Monitoring Forms
  • Online Tests
  • Scorecards
  • KPI Target Achievements

We are advocates for Continuous Professional Development (CPD) and ensure that all staff are offered internal and external training and workshops as applicable to their job role and also with a view to progressing within the firm and applying for other jobs roles.

We offered structured CPD which consists of: –

  • Seminars
  • Web based learning
  • Intranet
  • In-house training
  • External training
  • Conferences
  • Workshops
  • Lectures

6.4.3 Management

The company ensures that any staff member who is in a managerial or supervisory role, is trained, qualified, skilled and assessed as being competent and able to advise, coach and oversee the staff who report to them.

Supervisors within the company are dedicated to the professional develop of the staff in their team and provide adequate and effective leadership and management skills to ensure that staff are confident and happy in their job role and department.

We ensure that all supervisory staff are knowledgeable with regards to the regulatory requirements and that they are provided with ample and adequate time, support and resources to act as a source of advice and knowledge to those below them.

6.5 Business Model   

The company confirms that our business model (strategy for doing business) is suitable for carrying out the activities for which we are regulated and seek to carry on.

[Please insert a copy of your Business Model or link to file location here]

7. Associated Documents

The company uses multiple compliance documents to ensure that we meet and maintain the minimum Threshold Conditions. The below documents contain objectives and procedures that are key to us complying with Schedule 6 of The Financial Services and Markets Act 2000 and COND 2.7.1 of the FCA Handbook.

  • Risk Management Program (policy, procedures, register & matrix)
  • Internal Audit Policy & Procedures
  • Business Continuity Plan
  • Anti-Money Laundering Policy & Procedures
  • Anti-Money Laundering Audit Checklist
  • Training & Development Program
  • Recruitment, Selection & Induction Program
  • Certificate of Incorporation
  • Approved Persons & Suitability Policy
  • Conflicts of Interest Policy
  • Remuneration & Incentives Policy
  • Anti-Bribery & Corruption Policy

8. Responsibilities

The company will ensure that all staff are provided with the time, training and support to learn, understand and implement the Threshold Conditions and to understand how the company’s objectives and obligations under these regulations relate to each job role.

It is the Senior Management and any Approved Person/s overall responsibility to ensure that the Threshold Conditions are being met and maintained at all times through the use of reviews, audits and records of changes within the business.