demonstrate the knowledge and ability necessary for the performance of their duties; and
- (1) 1
- (2) 16
has not been convicted of any serious criminal offences linked to crimes against property or other crimes related to financial activities (other than spent convictions under the Rehabilitation of Offenders Act 1974 or any other national equivalent); and
has not been adjudged bankrupt (unless the bankruptcy has been discharged);
The firm should give particular consideration to offences of dishonesty, fraud, financial crime or other offences under legislation relating to banking and financial services, companies, insurance and consumer protection.
Firms are reminded that Principle 3 requires firms to take reasonable care to organise and control their affairs responsibly and effectively. Principle 3 is amplified by the rule which requires firms to take reasonable care to establish and maintain such systems and controls as are appropriate to its business (SYSC 3.1.1 R and SYSC 4.1.1 R).5 A firm's systems and controls should enable it to satisfy itself of the suitability of anyone who acts for it (SYSC 3.2.13 G and SYSC 5.1.2 G).5 This includes the assessment of an individual's honesty and competence. In addition, the competent employees rule (SYSC 3.1.6 R and SYSC 5.1.1 R)5 sets out a high-level competence requirement which every firm should follow.11