The SMCR requires firms to assess the Fitness and Propriety (F&P) of Senior Managers and Certified Persons, upon appointment to a role and on an ongoing basis.
Companies need to ensure individuals meet the key requirements relating to the F&P Pillars:
F&P processes need to be rigorous and seek not just the absence of negative indicators but also positive endorsements of the individual’s fitness and propriety.
To help you understand this further, we have some examples that call an individual’s fitness and propriety into question.