Key dates
- 22 September 2021
- - CBI notice of intention to amend PCFs under F&P regime (e.g., new Designated Persons roles)
- 20 November 2025
- - Effective date for revised Guidance on Fitness and Probity Standards
- 24 November 2025
- - CBI publishes Feedback Statement on CP160, Fitness and Probity Standards 2025, and revised Guidance
- Post
- amendment (TBD, after regulations effective); - 6-week window for in-situ PCF assessments and confirmations to CBI
Suggested considerations
- Conduct thorough F&P due diligence on PCF/CF holders pre-appointment and ongoing (best-efforts for references, criminal/financial checks via public records; assess time commitments case-by-case).
- Certify annually that PCF/CF individuals meet standards; no dual certification needed if PCF covers CF-1/2.
- Review and update succession planning, handover policies, and conduct breach procedures in light of new PCFs and IAF/SEAR (Statements of Effectiveness and Accountability of Responsibilities).
- Assess residency and capacity for non-resident PCF holders case-by-case, considering firm complexity.
- Embed F&P into culture and governance frameworks, aligning with IAF Conduct Standards once enacted.[Speech]
What changed
- The speech itself outlines no new statutory changes but highlights the F&P regime's role in ensuring "fit and proper" individuals in key roles and previews the IAF as a complementary framework to...
- Consolidation of F&P Standards into the Fitness and Probity Standards 2025, applicable across all sectors, read alongside revised Guidance on the Fitness and Probity Standards (effective 20 November...
- Amendments to Pre-Approval Controlled Functions (PCFs), adding roles like Designated Person for Investment Management (PCF-39D), Distribution (PCF-39E), and Regulatory Compliance (PCF-39F),...
- Clarifications on due diligence (best-efforts basis for references, criminal checks, financial soundness via public records only—no bank statements required), time commitments (case-by-case), and...
- Proportionality for fitness assessments but not probity; ongoing certification obligations for Controlled Functions (CFs) and PCFs.
These build on the speech's vision, addressing Enria Report...
Compliance impact
Urgency: High – While the 2021 speech is foundational, 2025 Standards and Guidance are now effective, mandating immediate due diligence enhancements and certifications amid IAF rollout. Non-compliance risks CBI investigations, prohibitions, or sanctions, especially with expanded PCFs tying into broader accountability (e.g., SEAR). This elevates board exposure, demanding proactive governance reviews to align culture with consumer protection mandates.