Recruitment within financial services carries a greater level of responsibility than many other industries. Firms are not only appointing individuals to perform important roles, but they are also responsible for ensuring those individuals meet the standards of honesty, integrity, competence, and reputation required by the FCA.
One of the key tools introduced under the Senior Managers and Certification Regime to support this objective is the Regulatory Reference for both Senior Managers (e.g. Directors) and Certified Staff (e.g. Mortgage Advisers). These references help ensure that relevant information about an individual’s conduct history is shared between firms when someone moves roles within the industry.
When requesting a Regulatory Reference, firms should review the information provided carefully and consider whether anything disclosed could affect the individual’s suitability for the role being offered. Matters such as Conduct Rule breaches, disciplinary action, or concerns relating to an individual’s fitness and propriety should be carefully considered before any appointment is finalised.
Equally, firms should ensure they understand their obligations when providing Regulatory References. The FCA requires firms to disclose certain information covering at least the previous six years and to ensure that nothing within employment agreements restricts their ability to provide accurate and complete information. By taking a thoughtful and thorough approach to Regulatory References, firms can strengthen their recruitment decisions and contribute to improving standards across the industry.
