Fit and proper requirement
Standard requiring managers and significant controllers of financial institutions to be competent, reputable and reliable.
The fit and proper requirement is a supervisory standard for persons who manage, direct or significantly influence regulated financial institutions. In Switzerland it is often expressed as a requirement of proper business conduct, integrity, professional competence and sound governance. FINMA and other supervisory structures consider qualifications, experience, reputation, conflicts of interest, past misconduct and ability to ensure compliant organisation. The requirement is ongoing, not only a licensing condition. Changes in management, ownership or serious incidents may require notification and renewed assessment.