UK

Financial Services and Markets Tribunal decision on approval of individuals in financial services industry

Joanna Gray, University of Newcastle upon Tyne

The statutory regime contained in Part V of the Financial Services and Markets Act (FSMA) contains a framework within which the FSA may grant and withhold its approval of individuals performing or who wish to perform key “controlled” functions within the UK financial services industry. There is little point in regulating business entities without some gate keeping of quality, competence and integrity of those individuals who constitute the industry but that gate keeping role also determines many thousands of livelihoods and careers so an early decision from the Financial Services and Markets Tribunal on the FSA’s application of its “fit and proper” test to individuals seeking approval is welcome and should be noted by those involved in Compliance and Human Resources functions in the industry as well as the range of other individuals affected by Part V FSMA 2000.