Fit and Proper Quiz: How Well Do You Know the FCA Test?

Sixteen questions on the FCA fit and proper test and the approval process for Senior Managers: the three criteria, the forms, regulatory references, criminal records checks and the 12-week rule. Reveal each answer as you go.

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How This Quiz Works

There are 16 questions on the fit and proper test and Senior Manager approval. Most are multiple choice. Read each question, choose your answer, then select Show answer to see the correct answer, a short explanation and a link to the full guide. Keep a note of your score and check it against the guide at the end.

The questions reflect the FCA rules as we understand them, including the 2026 changes to the Senior Managers and Certification Regime. They are a learning aid, not an official FCA test, and nothing here is legal advice.

Running a training session? Download this quiz as a Word document, with the questions first and the answers on a separate page.

This quiz is part of our SMCR quiz series:

SMCR Quiz: Start HereA 10-question sampler and the full series Senior Manager Functions QuizWhich SMF does what, tiers and responsibilities Fit and Proper QuizApproval, Form A, references and the 12-week rule Conduct Rules Quiz20 scenarios: who is covered and which rule applies MLRO and Financial Crime QuizSARs, the nominated officer, CDD and sanctions Compliance Officer QuizSMF16, monitoring, breaches and Consumer Duty

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The Fit and Proper Test

What the regulator, and the firm, must be satisfied of before a Senior Manager starts.

Question 1

Which of these is NOT one of the three main criteria in the FCA’s fit and proper test?

Honesty, integrity and reputation
Competence and capability
Financial soundness
A professional qualification

Show answer

Answer: D. The FCA’s FIT sourcebook sets out three criteria: honesty, integrity and reputation; competence and capability; and financial soundness. Qualifications help show competence but are not a separate test.

Question 2

Who must be satisfied that a Senior Manager candidate is fit and proper before an application is made?

Only the FCA
The firm, and then the regulator
The candidate’s previous employer
An external auditor

Show answer

Answer: B. The firm must assess the candidate first and confirm it is satisfied in the application. The regulator then makes its own assessment.

Question 3

Does a past regulatory or legal issue automatically disqualify a candidate?

Yes, always
No, the regulator considers relevance, seriousness and time elapsed
Only if it was within the last year
Only for SMF1

Show answer

Answer: B. The FCA looks at the circumstances: how serious the matter was, how long ago, and what the person has done since. Full disclosure matters more than a perfect record.

Question 4

A candidate has a county court judgment they did not mention. Which criterion is most directly affected?

Competence and capability
Financial soundness, and honesty if it was deliberately withheld
Neither
Only the firm’s capital adequacy

Show answer

Answer: B. CCJs go to financial soundness. Failing to disclose them can also raise questions of honesty, which is often the bigger problem.

Applications and Forms

The paperwork behind every Senior Manager appointment.

Question 5

Which form does a firm use to apply for approval of a Senior Manager?

Form A
Form C
Form D
Form E

Show answer

Answer: A, Form A. Form A is the application for approval. It covers the candidate’s history, the role and the firm’s fitness and propriety assessment.

Question 6

Which form is used when a Senior Manager leaves a function?

Form A
Form B
Form C
Form E

Show answer

Answer: C, Form C. Form C notifies the regulator that an approved person has ceased to perform a function.

Question 7

What is Form E used for?

Withdrawing an application
An internal transfer of an approved person to a new function
Changing a firm’s address
Reporting a breach

Show answer

Answer: B. Form E is used when an approved person moves to a new controlled function within the same firm or group.

Question 8

What is the statutory deadline for the FCA to decide on a complete Senior Manager application?

One month
Three months
Six months
There is no deadline

Show answer

Answer: B, three months. The regulator has three months from receiving a complete application. Incomplete applications can take considerably longer.

Does the FCA interview every Senior Manager candidate?

Yes, always
No, it decides case by case
Only for SMF1
Only for non-executives

Show answer

Answer: B. The FCA interviews some candidates, particularly for more significant roles or where it has questions. Every candidate should prepare for the possibility.

References, Checks and Timing

The checks that sit around the application.

Question 10

How many years must regulatory references normally cover?

Two
Three
Six
Ten

Show answer

Answer: C, six years. Firms must request regulatory references covering the previous six years from the candidate’s past employers in regulated firms.

Question 11

Must a firm obtain a criminal records check for a Senior Manager candidate?

Yes
No
Only for SMF1
Only if the candidate agrees

Show answer

Answer: A, yes. A criminal records check is part of the firm’s assessment for Senior Manager candidates.

Question 12

Under the 12-week rule as changed in April 2026, what must happen within 12 weeks when someone covers an unforeseen Senior Manager absence?

The person must be approved
The firm must submit an application for the person covering
The firm must recruit a permanent replacement
Nothing, cover can continue indefinitely

Show answer

Answer: B. Since the April 2026 changes, the firm has 12 weeks to submit an application, rather than to obtain approval, and the person can continue covering until the regulator decides.

Can a newly hired Senior Manager start performing their function before approval?

Yes, from their first day
Not normally, unless covering under the 12-week rule
Yes, if the board agrees
Only on a part-time basis

Show answer

Answer: B. A Senior Manager Function must not be performed without approval, apart from temporary cover under the 12-week rule.

How often must a firm certify the fitness and propriety of staff in certification functions?

Once, on joining
At least annually
Every three years
Only if a concern arises

Show answer

Answer: B, at least annually. Certified staff must be assessed and certified as fit and proper at least once a year.

Question 15

After approval, what should a firm do if it learns of information that may affect a Senior Manager’s fitness?

Nothing until the annual review
Consider it promptly and notify the regulator where required
Ask the Senior Manager to resign
Wait for the FCA to ask

Show answer

Answer: B. Fitness and propriety must be assessed on an ongoing basis, and significant matters must be notified to the regulator.

Question 16

Who decides whether an approved Senior Manager should be replaced after a serious failing?

The FCA, automatically
The firm, informed by its own fitness assessment
The skilled person
The candidate’s previous employer

Show answer

Answer: B. Decisions about individual appointments are normally the firm’s, though the regulator will want to understand any change.

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How Did You Do?

Count your correct answers out of 16.

13 or more: You know the approval process well. Try the Conduct Rules quiz next.
8 to 12: Good. Our guide to what goes wrong in Form A submissions will sharpen the detail.
Fewer than 8: Read the fit and proper test in full before your next application.

More Quizzes in the Series

Each quiz in the series tests a different part of the regime. Work through them in any order.

From Quiz to Appointment

We build the fit and proper assessment into every search from the first conversation, so the candidates you see are ready for the Form A.

SMF authorisation supportForm A and approval support Urgent SMF replacementCover when a Senior Manager leaves Interim SMF16 and SMF17Interim cover, shortlisted in days SMF recruitment servicesPermanent Senior Manager search

Related Services and Guides

From knowledge to appointment. Every search is run by our specialist team, with Adrian Lawrence FCA overseeing each mandate

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Compliance officer (SMF16) →

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Resources

Guides, templates and pay data.

→ Knowledge Centre → Free guides and templates

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For current and future Senior Managers.

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Candidate resources →

Every search is run by our specialist team, with Adrian Lawrence FCA overseeing each mandate

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Frequently Asked Questions

Is this an official FCA test?

No. It is a learning aid, not an official assessment.

Where is the fit and proper test set out?

In the FCA Handbook’s FIT sourcebook, with related rules on Senior Manager approval in SUP 10C.

Can a candidate fail the fit and proper test for one issue?

It depends on the issue and how it was disclosed. The regulator looks at the whole picture, and non-disclosure is often more damaging than the original matter.

About the Author

Adrian Lawrence FCA is the founder of SMF Capital. He is a Chartered Accountant and Fellow of the ICAEW, holds a practising certificate in his own name, and is a former listed-company Finance Director with a BSc from Queen Mary College, University of London. He founded FD Capital in 2018 and has since built a network of five specialist recruitment practices. He oversees every SMF Capital search. View Adrian’s ICAEW profile.

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