Who we will assess for fitness and propriety

CDC code in force: 1 August 2022

Those fulfilling various roles in relation to a CDC scheme must show that they meet satisfactory standards of fitness and propriety^WO1. For a scheme to be (and remain) authorised we need to be satisfied that all relevant individuals can show the appropriate skills and characteristics on their appointment and throughout supervision. If the relevant individuals change at any time after authorisation they will need to be assessed. We will also need to be satisfied that the trustee board as a whole has sufficient competence to carry out its role. The Regulations set out the matters we must consider in our assessment^WO2.

Each individual subject to the assessment must provide a declaration and criminal conviction certificate^WO3. The other evidence we require will vary from role to role. We will also take into account:

• evidence of competence
• statements of development
• evidence of qualifications or learning programmes
• other relevant professional experience
• matters we consider appropriate, including those relating to a connected person^WO4
• matters that occur in and outside the UK

Trustees must:

• identify each person subject to a fit and proper test^WO5
• ensure that we receive sufficient evidence about them for us to complete our assessment
• carry out due diligence (to the extent possible) to determine whether the relevant persons meet the requirements to be fit and proper, and identify any action needed

Identifying who is subject to the fit and proper test

The Act sets out the persons who we must^WO6 assess at authorisation and during supervision. Trustees must^WO7 identify any individual, or group of individuals, who perform one or more of the roles to be assessed for fitness and propriety. We will assess each of those persons.

Where the roles are fulfilled by a corporate entity, we will assess the appropriate senior individuals, but we will not normally assess the corporate entity.

Where an individual or legal entity has more than one role in relation to a CDC scheme, they will be assessed for fitness and propriety in relation to each role. We may look through corporate structures to the individuals on relevant boards who are performing core functions in relation to the scheme. A core function includes an executive or management role carried out in respect of, or on behalf of, a person subject to the fit and proper assessment.

We may also consider other matters, including whether there are any persons connected to those we are assessing that are relevant to our assessment of fitness and propriety.

The person who establishes the CDC scheme

This is the person who entered into the trust deed and rules. They may:

• have provided the initial financial backing for the CDC scheme
• remain connected to the CDC scheme

We will not assess a person who has no decision-making capacity in, or influence over, the scheme.

Trustees

The following people need to be identified:

• All trustees who are appointed as individuals.
• All the directors of a corporate trustee of the scheme.
• All individuals who perform core functions and make decisions on behalf of a trustee director that is itself a corporate body.

Persons who can appoint or remove trustees

We will assess all persons identified in the trust deed, or other documents, as having the power to appoint or remove trustees. We will not normally assess members who vote as part of an election or selection process.

Persons who can amend the trust deed

We will assess all persons identified in the trust deed, or other documents, as having the power to amend the deed.

We will not normally assess:

• members who vote on or consent to amendments
• employers who can change the admission criteria only for their section or for individual members

Legal references

^WO1 Sections 9(3)(a) and 11 of the Act

^WO2 Regulation 8 and Schedule 1 to the Regulations

^WO3 Regulation 6(2)(a)(v) of the Regulations

^WO4 Section 11(3)(b) of the Act

^WO5 Regulations 6(2)(a) and (b) of the Regulations

^WO6 Section 11(2) of the Act

^WO7 Regulation 6 of the Regulations

Related content

• Identifying persons for fit and proper assessment: guidance