Authorised Firms — Collective suitability of Individuals or Other Persons Connected to the Authorised Firm
Notwithstanding that individuals performing
Licensed Functionsare required to be Authorised Individualsand that an Authorised Firmis required to appoint certain Authorised Individualsto certain functions as stated in chapter 7 of the GEN module, the DFSAwill also consider:(a) the collective suitability of all of the Authorised Firm'sstaff taken together, and whether there is a sufficient range of individuals with appropriate knowledge, skills and experience to understand, operate and manage the Authorised Firm'saffairs in a sound and prudent manner;(b) the composition of the Governing Bodyof the Authorised Firm. The factors that would be taken into account by the DFSAin this context include, depending on the nature, scale and complexity of the firm's business and its organisational structure, whether:(i) the Governing Bodyhas a sufficient number of members with relevant knowledge, skills and expertise among them to provide effective leadership, direction and oversight of the Authorised Firm'sbusiness. For this purpose, the members of the Governing Bodyshould be able to demonstrate that they have, and would continue to maintain, including through training, necessary skills, knowledge and understanding of the firm's business to be able to fulfil their roles;(ii) the individual members of the Governing Bodyhave the commitment necessary to fulfil their roles, demonstrated, for example, by a sufficient allocation of time to the affairs of the firm and reasonable limits on the number of memberships held by them in other Boards of Directorsor similar positions. In particular, the DFSAwill consider whether the membership in other Boards of Directorsor similar positions held by individual members of the Governing Bodyhas the potential to conflict with the interests of the Authorised Firmand its customers and stakeholders; and(iii) there is a sufficient number of independent members on the Governing Body. The DFSAwill consider a member of the Governing Bodyto be "Independent" if he is found, on reasonable grounds by the Governing Body, to be independent in character and judgement and able to make decisions in a manner that is consistent with the best interests of the Authorised Firm;(c) the position of the Authorised Firmin any Groupto which it belongs;(d) the individual or collective suitability of any Personor Personsconnected with the Authorised Firm;(e) the extent to which the Authorised Firmhas robust human resources policies designed to ensure high standards of conduct and integrity in the conduct of its activities;(f) whether the Authorised Firmhas appointed auditors, actuaries and advisers with sufficient experience and understanding in relation to the nature of the Authorised Firm'sactivities; and(g) whether the remuneration structure and strategy adopted by the Authorised Firmis consistent with the requirements in GEN Rule 5.3.31(1).