FIT
Fit and Proper Test
Definition
The assessment regulators conduct to determine whether individuals holding key positions in regulated firms possess the required honesty, integrity, reputation, competence, and financial soundness. The FIT test applies to senior managers, certified persons, and those performing controlled functions.
Regulatory Context
Under SM&CR in the UK, firms must certify the fitness and propriety of relevant staff at least annually. Similar fitness and propriety requirements exist across jurisdictions, including under CRD IV in the EU and individual state requirements in the US.