What is a primary requirement of FCA firm staff under the approved person regime?

The approved person regime established by the Financial Conduct Authority (FCA) is designed to ensure that individuals who hold key roles within regulated firms are fit and proper to perform their duties. A primary requirement for firm staff under this regime is the identification and assignment of controlled functions and significant influence functions.

Controlled functions are specific roles that require an approval process due to their impact on the firm’s affairs and the potential risks they pose to clients and the broader financial system. Significant influence functions include positions that allow individuals to influence the conduct of the firm significantly, such as directors or compliance officers. This categorization ensures that only qualified and suitable individuals are in positions of power, thereby maintaining standards and accountability within financial institutions.

In contrast, while transparency in communication, regular training updates, and client satisfaction metrics are important elements of overall good practice in financial services, they do not specifically relate to the core requirement for FCA regulated firms regarding the approval and oversight of individuals in influential roles. The focus of the approved person regime is on the suitability and accountability of those individuals, making the understanding of controlled and significant influence functions paramount for compliance within the sector.