Process for assessment of fitness and prProcess for assessment of fitness and propriety

Process for assessment of fitness and propriety

26. The Fit and Proper Policy must include the processes to be undertaken in assessing whether a person is fit and proper for a responsible person position (fit and proper assessment). The processes must include details of:

(a) a statement of who will conduct fit and proper assessments on behalf of the RSE licensee;

(b) what information will be obtained and how it will be obtained;

(c) the matters that will be considered before determining if a person is fit and proper for a responsible person position; and

(d) the decision-making processes that will be followed.

27. The Fit and Proper Policy must specify the actions to be taken where a person is assessed as being not fit and proper.

28. The Fit and Proper Policy must provide that a copy of the Policy is to be given to:

(a) any candidate for election or appointment as a director of the RSE licensee as soon as possible after the candidate is nominated; and

(b) any other person before an assessment of their fitness and propriety is conducted.

29. The Fit and Proper Policy must require a fit and proper assessment to be completed before a person becomes the holder of a responsible person position unless they hold the position because APRA has determined that the person is a responsible person under paragraph 14. In such cases, the Fit and Proper Policy must require an assessment to be completed within 28 days of the person becoming the holder of the responsible person position or 28 days after APRA makes the determination under paragraph 14.

30. Interim appointment to a responsible person position may be made without a full fit and proper assessment for a period of up to 90 days (or longer with APRA’s written agreement) including any prior period of interim appointment. Prior to making such an appointment, reasonable steps must be taken, as specified in the Fit and Proper Policy, to assess the fitness and propriety of the person. The RSE licensee must complete a full fit and proper assessment prior to appointing the person to the responsible person position on a permanent basis.

31. The Fit and Proper Policy must require annual fit and proper assessments (or as close to annual as is practicable) for each responsible person position.

32. When a fit and proper assessment is conducted, an RSE licensee must make all reasonable enquiries[20] to obtain information, including collecting sensitive information as defined in the Privacy Act 1988, that it believes may be relevant to an assessment of whether the person is fit and proper to hold a responsible person position.