Who is subject to fit and proper assessment by the firm?

The fit and proper assessment is particularly focused on individuals who hold significant roles within a firm, specifically those in senior management functions and certification employees. This evaluation process serves to ensure that individuals in these positions are competent and have the necessary integrity to carry out their roles effectively, which is crucial for maintaining high professional standards within the financial services industry.

Senior management functions encompass roles that have a significant influence over the operations and governance of the firm, while certification employees are those who carry out functions that could cause a significant impact on the firm or its customers, such as those involved in the handling of customer assets or the management of financial risks.

Such assessments help to safeguard the firm's operations and protect stakeholders by ensuring that individuals in pivotal positions are not only qualified but also uphold ethical standards. This is in line with the regulatory requirements that aim to promote professionalism and trust within the industry. Other groups like all employees, clients, or third-party service providers do not undergo the same level of scrutiny pertaining to fit and proper assessments as those in senior management and specific certification roles.