What does the term "fitness and propriety" entail for regulated individuals?

The term "fitness and propriety" refers to a critical assessment of an individual's competence, capability, and integrity to perform roles or functions that are governed by regulations. In the context of financial services and other regulated sectors, it is essential for individuals in key positions to demonstrate not only their technical skills but also their ethical standards and trustworthiness. This ensures that they can effectively uphold the standards and responsibilities associated with their roles, thereby protecting the interests of clients and maintaining the integrity of the financial system.

This holistic evaluation covers aspects such as an individual’s professional qualifications, experience, honesty, and reputation. Regulators employ this assessment as a way to ensure that individuals in regulated positions can be trusted to act in accordance with the law and the ethical standards expected of their professions.