BSB publishes certification guidance

The Banking Standards Board (BSB) has published good practice guidance for banks and building societies putting in place procedures to assess the fitness and propriety of staff under the Certification Regime. This takes the form of a high-level set of principles on the assessment of fitness and propriety. The BSB has also issued supporting guidance on this area which reflects the knowledge and experience of BSB member firms. It contains comprehensive definitions of each element of the regime (honesty and integrity, reputation, competence and capability, and financial soundness), potential sources of information that could be taken into account when carrying out the assessments and example assessment record template to support consistent recording of the outcome of fitness and propriety decisions across firms.

The BSB plans further good practice guidance on topics including identifying and evaluating risks and issues related to certification, assessing the fitness and propriety of individuals working outside the UK or moving to the UK from overseas, and factors to consider when sharing information about certified individuals when they move between firms (this is linked to the regulatory reference requirements). It has also set up a member firm working group to share experiences and facilitate the identification of good practice to help to achieve a fair and effective implementation.