Creating a certification dashboard Certification whats involved FIT
Creating a certification dashboard
Certification – what’s involved FIT assessment Certificate issued First certificate issued by March next year Annual reassessments
Main FIT Criteria Honesty, integrity and reputation Competence and capability Financial soundness
What does a green dashboard mean?
There are different groups within scope All employees performing a role relating to a relevant firm’s regulated activities which is not a senior management function but could pose a risk of significant harm to the firm or its customers Certain material risk takers –people whose actions could have a material impact on the risk profile of the firm FCA – customer facing roles that are subject to the qualification requirement Individuals who supervise or manage another person who is covered by the certification regime Any other SIF roles under the current APER not listed in the SMR
There are different regulations to consider regarding competence SYSC CER TC
FIT Senior SYSC 4. 2 The senior personnel of a common platform firm, a management company 1 a full-scope UK AIFM, or of the UK branch of a non-EEA bank 3 must be of sufficiently good repute and sufficiently experienced as to ensure the sound and prudent management of the firm. [Note: article 9(1) of Mi. FID, article 7(1)(b) of the UCITS Directive 1 article 8(1)(c) of AIFMD 2, article 11(1) second paragraph of the Banking Consolidation Directive and article 13(1) of the CRD 4]. 2 SYSC 4. 3 A. 3 R A CRR firm must ensure that the members of the management body of the firm: (1) are of sufficiently good repute; (2) possess sufficient knowledge, skills and experience to perform their duties; (3) possess adequate collective knowledge, skills and experience to understand the firm's activities, including the main risks; (4) reflect an adequately broad range of experiences; (5) commit sufficient time to perform their functions in the firm; and (6) act with honesty, integrity and independence of mind to effectively assess and challenge the decisions of senior management where necessary and to effectively oversee and monitor management decision-making.
FIT general employees SYSC 5. 1. 1 R A firm must employ personnel with the skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them.
FIT retail TC 2. 1. 12 R A firm must review on a regular and frequent basis employees' competence and take appropriate action to ensure that they remain competent for their role.
Points to consider What outcomes would I expect to see with a green certification card? What indicators can I rely on? What can I do to ensure the indicators are reliable? How can I utilise MI that is already gathered within the business?
Key performance indicators A. B. C. D. E. F. G. H. I. J. K. Quantitative indicators that can be presented with a number. Qualitative indicators that can't be presented as a number. Leading indicators that can predict the outcome of a process Lagging indicators that present the success or failure post hoc Input indicators that measure the amount of resources consumed during the generation of the outcome Process indicators that represent the efficiency or the productivity of the process Output indicators that reflect the outcome or results of the process activities Practical indicators that interface with existing firm processes. Directional indicators specifying whether or not a firm is getting better. Actionable indicators are sufficiently in a firm's control to effect change. Financial indicators used in performance measurement
Create a dashboard Design the dashboard with the key performance indicators you would like to include. Try to use a variety of indicators and if possible identify the category to which it belongs.
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