What is FCA screening and what are good practices for staff recruitment?

FCA Screening s a set of pre-employment screening standard which set by FCA to ascertain that a person is honest, have integrity and reputation and which confirms that they are ‘fit and proper’ for the role they are going to undertaking. The pre-employment checks consist of a variety of background checks which will comply with the ‘The Fit and Proper Test’ for Approved Persons which has been set out by the Financial Conduct Authority (FCA).

As per the Financial Services and Markets Act (2000), the firms that it regulated by FCA should adhere to a strict code of recruitment procedure and practice.

As per the Financial Services and Markets Act (2000), the firms that it regulated by FCA should adhere to a strict code of recruitment procedure and practice.

• Financial investment organisations or advisers
• Consumer credit firms
• Insurance companies
• Co-operative societies
• E-money companies

The FCA screening comprises of the following checks.

Identity check

• Identity confirmation
• Electoral Roll check
• Directorship search
• Address verification
• Right to Work Check

Financial checks

• Bankruptcy / Insolvency search
• CCJ
• Credit score
• Financial Services Register Check
• AML PEPs & Sanction Search

Educational Checks

• Verification of Highest Education
• Verification of professional qualification

Employment Checks

• Five to ten years employment history

Criminal records check

• Basic Disclosure or Standard DBS Check

Following are few examples of good practices for staff recruitment and vetting as per Financial Conduct Authority (FCA):

• Vetting of prospective employees on a risk-based approach, considering data security and other fraud risks in consideration.
• Enhanced pre-employment vetting which should include checks of credit records, criminal records, financial sanctions list, PEPs, Adverse media and the CIFAS Fraud Database. The enhanced checks should be undertaken for staff in roles with access to large amounts of customer data.
• Proper communication channels between HR and Financial Crime unit to ensure that financial crime risk indicators are considered during the pre-employment vetting process.
• Detailed understanding of vetting conducted by employment agencies for temporary and contract roles.
• Standard operating procedures to assess on a regular basis whether staff in higher risk positions are becoming vulnerable to committing fraud or being coerced by criminals.
• A four eyes check where appropriate