More and more employers are using background checks to screen candidates because of the potential for applicants to misrepresent their credentials, but in the financial world, background checks aren’t just a good idea, they’re mandatory. The Financial Conduct Authority (FCA) recently tightened background screening requirements for financial traders, just after the FINRA tightened regulations that impacted financial firms in the United States, but FCA pre-employment screening has its benefits.
Confirming Work Ethic and History
By increasing the number of background screenings and the depth of the investigations, firms can adequately assess the propriety and fitness of their staff, eliminating those with problems or shady practice histories. It also keeps traders honest in reporting work and education histories on their resumes. Firms will be held accountable to the FCA regulators for adequate assessments and are urged to adopt new policies and procedures for conducting these assessments.
Regulating More Levels of Employees
In the past, only senior management candidates were vetted for open positions. However, with new FCA pre-employment screening regulations, even some junior employees will be screened, so firms can be sure every employee’s background is verified.
Reducing Risk of Harm
The new certification regime aids in reducing the risk of harm to firms and their customers. By making sure that candidates and employees satisfy specific requirements concerning their qualifications, competence, training and personal characteristics, firms can be sure that employees can handle the position and prevent disastrous events. With the new FCA compliant background check, firms will be required to reassess certain employees every year and issue new annual certification.
Standardized Conduct Rules
In order to be certified, any staff subject to the regime will be expected to meet new standardized conduct rules, making sure the entire firm is on the same page with basic staff behavior. Over time, all staff will be expected to comply.
By using an FCA compliant background check, firms can protect their customers and reputation. Edge Information provides an in-depth look into current and potential employees’ backgrounds to ensure that they’re the best fit for your company.