In fitness and probity, which function is described as requiring prior approval?

• A. Controlled Function
• B. Politically Exposed Person
• C. Pre-Approval Controlled Function
• D. Compliance Function

Answer: (C)

In fitness and probity, roles that carry significant influence over a licensee’s operations are assessed by the regulator before the person can perform them. This is described as a Pre-Approval Controlled Function. The key idea is the “pre-approval” part: the regulator must authorize the individual prior to them taking on the function, reflecting the high level of responsibility involved. That’s why this term best fits the requirement for prior approval. Other terms describe different concepts—for example, a Controlled Function is a broad category of important roles subject to probity checks but not necessarily requiring pre-approval, a Compliance Function focuses on ensuring rules are followed, and a Politically Exposed Person is a risk category that triggers enhanced due diligence rather than a pre-approval process.