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Basic Rules
The rules say that Firms firm must take reasonable care to ensure that no employee performs an FCA certification function unless the employee has a valid certificate issued by that firm to perform that function.
This means that firms will need to check and confirm (certify) at least once a year that these people are suitable to do their job and maintain a record of every employee who has a valid certificate issued by it.
A firm may only issue a certificate to a person if the firm is satisfied that the person is a fit and proper person to perform the FCA certification function to which the certificate relates.
In assessing if a person is fit and proper to perform an FCA certification function, a firm must have regard, in particular, to whether that person:
(1) has obtained a qualification;
(2) has undergone, or is undergoing, training;
(3) possesses a level of competence; or
(4) has the personal characteristics required by general rules made by the FCA.
Certification staff must also be formally assessed initially and at least annually thereafter as Fit And Proper under the Fitness and Propriety (FIT) rules covered in a separate section of this manual.
They are also subject to Regulatory References rules covered later in this section.
Issuing and Renewing Certificates
Certificates issued by firms must:
(1) state that the firm is satisfied that the person is fit and proper to perform the function to which the certificate relates; and
(2) set out the aspects of the affairs of the firm in which the person will be involved in performing the function.
A certificate is valid for a period of 12 months, beginning with the day on which it is issued. It cannot be drafted to last more than 12 months
(The FCA though believes that FSMA allows a firm to draft a certificate to expire after fewer than 12 months. The FCA interprets the Act in this way because to require a firm to make a certificate last longer than the firm thinks best is likely to make it harder for the firm to ensure the fitness of its certification employees. That would undermine the purpose of the certification regime in the Act.)
If someone performs more than one Certification Function, a firm must certify that the person is fit and proper to carry out each function. There might be different competencies required for the different functions, so firms must assess that the person is fit and proper to do each role but this could be done as part of a single assessment process and in a single certificate.
If, after having considered if a person is fit and proper to perform an FCA certification function, a firm decides not to issue a certificate to that person, the firm must give the person a notice in writing stating:
(1) what steps (if any) the firm proposes to take in relation to the person as a result of the decision; and
(2) the reasons for proposing to take those steps.
It should also consider if the circumstances warrant making a notification to the FCA for a breach of the Code of Conduct Rules (COCON) covered in the Supervision (SUP) section of this manual.
In cases where a certification employee’s role changes to involve a new FCA certification function part way through the 12-month period for which their certificate is valid, the firm may need to reissue the certificate if that new function has different requirements relating to:
(a) personal characteristics;
(b) the level of competence, knowledge and experience; (c) qualifications; or
(d) training;
The FCA would expect the firm to assess whether the employee is fit and proper to perform that new function before they start it.
Temporary Appointments
The rules allow firms to temporarily appoint an individual to a role which would otherwise require certification if the appointment is to provide cover for a certification employee whose absence is reasonably unforeseen and the appointment is for less than four weeks;