Staying ‘fit and proper’

In a new article for Financial World, Edwin Coe comments on how the Financial Conduct Authority has broadened its concept of “fit and proper” to cover conduct issues not directly related to financial matters.

Being a good man is not necessarily the same as being a good citizen, Aristotle noted. That is certainly true in financial services if only because what constitutes a good citizen from the perspective of a financial regulator, that is being “fit and proper”, has changed markedly over recent years.

Under the Financial Services and Markets Act (FSMA), the concept of “fit and proper” always extended beyond qualifications, training, capability and financial soundness to encompass “personal characteristics”, but such characteristics were never defined. Scroll back 10 years and the Financial Conduct Authority (FCA) concept of “fit and proper” was inextricably tied to financial probity.

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