Conduct of individuals involved with the scheme

CDC code in force: 31 July 2026

1. We must take into account a person’s conduct in the five years before the authorisation application, and continuously afterwards in relation to any work done in connection with an assessed role (or in the case of a multi-employer CDC scheme, on behalf of someone who was undertaking an assessed role) in relation to a CDC scheme¹.
2. We are more likely to be satisfied of an individual’s conduct if:
   1. they act in an open, honest, and transparent manner
   2. they are responsive to issues that may arise in their scheme
   3. they seek to improve outcomes for their members
   4. where an adverse event has previously occurred:
      1. there are mitigating circumstances
      2. they have acted to reduce the likelihood of it recurring
      3. they are able to provide evidenced examples of their conduct, such as testimonials relating to other schemes
3. While the following is not an exhaustive list, we are less likely to be satisfied of an individual’s conduct if:
   1. they are, or have been, under investigation by a regulatory authority (including TPR), government agency, or professional body
   2. they are, or have been, subject to disciplinary action by a regulatory authority (including TPR), government agency, or professional body
   3. they have had action taken against them or had permissions or licences removed by a regulatory authority (including TPR), government agency, or professional body for reasons of misconduct
   4. they are subject to disciplinary or criminal proceedings or they have unspent and/or spent criminal convictions
   5. they have been notified of potential proceedings, including investigations
   6. they have been dismissed, resigned or forced to resign due to negligence or misconduct from employment or a role involving a fiduciary duty
   7. they have been dismissed, resigned or forced to resign over poor management or failure to resolve a conflict of interest
   8. there are aggravating factors to any of the adverse events in a to g above that are relevant to the role being assessed, including their frequency, severity and impact
4. Where a person has experienced one of the adverse events listed above it may still be possible to satisfy us with a full explanation, supported by evidence, of how the situation was resolved satisfactorily and how further experience demonstrates acceptable conduct. 

Legal references

¹ Paragraph 2(j) of Schedule 1 to the 2022 and 2025 Regulations

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