In line with its objective to ensure the sound conduct of business in the financial services and global business sectors, the Financial Services Commissions (FSC) issued its revised Guidelines on Fitness and Propriety (the “Guidelines") on 2 October 2020.

The Guidelines will be effective as from 1 November and clarify the criteria that will be taken into consideration by the FSC in assessing the Fitness and Propriety of applicants/licensees comprising, though not restricted to, the below:

(a) all the shareholders of the applicant/licensee;
(b) any beneficial owner of the applicant/licensee;
(c) any controller of the applicant/licensee;
(d) any director of the applicant/licensee;
(e) any officer of the applicant/licensee;
(f) any incumbent officer such as the Money Laundering Reporting Officer, the Deputy Money Laundering Reporting Officer and the Compliance Officer;
(g) any representative or agents of the applicant/licensee;
(h) trustees and management committees of occupational pension plans;
(i) external and outsourced auditors of regulated entities;
(j) the principal representative of a foreign financial institution that is conducting insurance business or business of a financial nature;
(k) an insurance agent, broker and sales representative and any such person as maybe determined by the FSC.

For the purpose of enabling the “Fit and Proper" assessment, the above mentioned applicants/licensees are required to complete the Personal Questionnaire form, as was the case previously except that this form has now been updated to enable a better assessment of the individual. The “Fit and Proper" test will be carried out by the FSC at the time of the application of a licence or an authorization but it is imperative that the applicant/licensee remains fit and proper at all times.

To access the Guidelines, please click HERE