Qualified Financial Adviser (QFA) Regulations Exam 1 Practice Test

Fit and proper checks focus on whether someone is suitable to provide regulated financial services by looking at both character and capability. Key elements include probity—honesty and integrity—and competence, which covers the skills, knowledge, and ability to perform duties to a required standard. It applies to individuals delivering regulated services, ensuring they meet not just personal integrity but also the technical ability to do the job.

Professional qualifications are part of competence. Regulators consider whether a person holds the appropriate qualifications, training, and ongoing development to perform their role safely and effectively. So the statement that there is no assessment of professional qualifications is not correct; qualifications form part of determining whether someone is fit and proper.