Understanding FCA Fit and Proper Requirements & Conduct Rules

This presentation provides a clear overview of the FCA’s Fit and Proper requirements and Conduct Rules, outlining how firms can assess employee competence, integrity, and financial soundness. It also highlights the importance of accountability, ethical behaviour, and regulatory compliance within financial services. Learn how MEMA Consultants supports firms in meeting FCA standards through tailored compliance frameworks and practical guidance.

1. Secure Solutions for a
Regulated World

Bridging
Compliance and
Business Excellence

2. FCA Fit And Proper
Requirements and Conduct
Rules
Following our previous article on the Senior Manager
regime, we detail the core criteria and standards set by
the Financial Conduct Authority (FCA) for financial firms
and individuals in the UK.
REGULATORY FRAMEWORK

3. FCA Fit And Proper Requirements
These criteria ensure that only firms and individuals with the necessary skills, knowledge, and
experience are authorized to operate within the financial sector
Financial Soundness
Firms must have the financial
resources and stability to carry
out activities in a safe and
responsible manner.
Honesty and Integrity
Firms and individuals must
have a good reputation, free
from criminal convictions or
sanctions that question their
integrity.
Competence and
Capability
Individuals must possess the
necessary skills, knowledge,
and experience to perform
their activities competently
and professionally.

4. Transparency
Provide clear and accurate
information about products
and services.
The Foundation of Conduct Rules
Conduct Rules are the standards financial firms and individuals must adhere to, ensuring they
act with integrity, transparency, and fairness, prioritizing consumer interests.
Integrity
Act honestly and with high
ethical standards in all dealings.
Fairness
Always put the interests of
consumers first in every transaction.

5. Treating Customers
Fairly
Maintaining Market
Integrity
Managing Conflicts
of Interest
Act in the best interests
of customers and
provide clear, accurate
information about
products and services.
Key Areas of Conduct
Do not engage in activities
that could undermine
financial markets, such as
insider trading or market
manipulation.
Take steps to avoid or
manage conflicts of interest
that may arise, protecting
customer interests.

6. ACHIEVING COMPLIANCE
Ensuring Approval: SM&CR Review
Both Fit and Proper Requirements and Conduct Rules are essential for a fair, transparent,
and responsible financial sector, protecting consumers from misconduct.
A key step towards getting your applications approved by the FCA is to ensure you have
conducted a thorough review of your SM&CR requirements.

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2
1
How MEMA Can Help Your Business
Our specialist team offers the experience and expertise to guide your compliance journey.
Regulatory Documentation
We provide a regulatory business plan, a suite of compliance policies, and
an IT security risk assessment.
Policy Tailoring And Review
We offer template documents and tailor them to your specific circumstances.
We also conduct gap analysis on current policies.
Remediation Planning
We explain the FCA’s expectations, recent publications, and prepare a gap
analysis and/or a suitable remediation plan.

8. Contact MEMA
MEMA's Client Focus
We work with a diverse range of financial institutions navigating complex regulations:
Payment initiation service providers (PISPs)
Account information service providers (AISPs)
E-Money institutions
FX exchange companies
Merchant acquirers
Bill payment service providers
Electronic communication exclusion businesses
Need help? Contact MEMA for a complimentary chat to understand your business requirements:
[email protected].