Fit and Proper Test: Who has to take the test?
The fit and proper test is taken at the time of registration by responsible persons.
Responsible persons are:
- sole practitioners or partners
- officers of the business including director and company secretary
- senior managers who are engaged directly in the provision of regulated activity
- the nominated officer
- a ‘beneficial owner’ of the business
- a person who is in effect directing the business
The fit and proper test also applies to agents of MSBs and their responsible persons , although it is the responsibiity of an MSB to ensure their agents and the agent’s beneficial owners, officers and managers are fit and proper.
In practice, this means all sole proprietors, partners, directors, company secretaries, senior managers, trustees, and nominated officers will need to be tested, as well as any beneficial owners of the business. See MLR2R5700 and MLR2R5750 for beneficial owner definition.