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SUP 10A.15 References and accurate information


SUP 10A.15.1RRP
  1. (1)

    If a firm (A):

    1. (a)

      is considering appointing a person to perform any FCA controlled function;

    2. (b)

      requests another firm (B), as a current or former employer of that person, for a reference or other information in connection with that appointment; and

    3. (c)

      indicates to B the purpose of the request;

    B must, as soon as reasonably practicable, give to A all relevant information of which it is aware.

  2. (2)

    When giving the information to A under (1), B must have regard to the purpose of the request and, in particular, to:

    1. (a)

      any outstanding liabilities of that person from commission payments;

    2. (b)

      any relevant outstanding or upheld complaint from an eligible complainant against that person;

    3. (c)

      section 5 of the relevant Form A in SUP 10A Annex 4 (Application to perform controlled functions under approved persons regime);

    4. (d)

      FIT 2 (Main assessment criteria); and

    5. (e)

      if SUP 16.8.1 G (1) (Persistency reports from insurers) applies to B, the persistency of any life policies sold by that person.

SUP 10A.15.2G

The requirement in SUP 10A.15.1R (1) for firm (B) to give to firm (A) all relevant information of which it is aware concerning a person firm A is considering appointing to perform any of the FCA controlled functions, also applies where firm A has outsourced the collection of that information to another (unregulated) third party, where firm B has been made aware that the unregulated third party is acting on behalf of firm A.

SUP 10A.15.3G

A firm supplying a reference in accordance with SUP 10A.15.1 R owes a duty to its former employee and the recipient firm to exercise due skill and care in the preparation of the reference. The reference should be accurate and based on documented fact. The firm may give frank and honest views, but only after taking reasonable care both as to factual content, and as to the opinions expressed, and verifying the information upon which they are based.

The need for complete and accurate information

SUP 10A.15.4GRP

The obligations to supply information to:

  1. (1)

    the FCA under either SUP 10A.14.8 R or SUP 10A.14.10 R;

  2. (2)

    another firm under SUP 10A.15.1 R;

apply notwithstanding any agreement (for example a 'COT 3' Agreement settled by the Advisory, Conciliation and Arbitration Service (ACAS)) or any other arrangements entered into by a firm and an employee upon termination of the employee's employment. A firm should not enter into any such arrangements or agreements that could conflict with its obligations under this section.

SUP 10A.15.5GRP

Failing to disclose relevant information to the FCA may be a criminal offence under section 398 of the Act.