In October and November 2015, the PRA and FCA consulted on a set of proposals for the provision of regulatory references, by current or former employers, in respect of individuals applying for certain roles at deposit-takers, insurers (including Swiss general insurers) and PRA-designated firms.  This week the FCA and PRA published a policy statement which, amongst other things, includes:

  • rules to implement the first set of proposals on regulatory references which will apply from 7 March 2016 but which, as a result of consultation responses, will be supplemented with the PRA’s full policy at a later date.
  • final rules to implement the remaining proposals made in Chapter 4 of PRA CP36/15 and PRA CP41/15. 

The policy statement confirms, amongst other things, that from 7 March 2016, when considering the appointment of an in-scope individual, PRA-regulated firms will be required to provide a reference to another regulated firm “as soon as reasonably practicable” upon request containing“all relevant information” of which it is aware.

Firms will also be required to take reasonable steps to obtain references covering at least the past five years of service from a person’s current and previous employers, and from organisations at which the person served as, or is currently, a non-executive director (NED).

The new rules become effective on 7 March 2016, with the exception of the rules in relation to the grandfathering provisions for current approved persons, which came into effect on 15 February 2016.

For more information, please see our briefing: "Regulatory References: the interim rules."