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Providing references: financial services

Updating authors: Nick Thorpe and Neil Johnston
Consultant editors: Bridget Barker and Paul Ellison

Summary

  • General employment law principles apply in respect of references for employees at firms regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). (See Termination of employment > Providing references)
  • Additional regulatory requirements apply in relation to references for approved persons. (See References for approved persons)
  • Additional regulatory requirements apply in relation to references for individuals subject to the Senior Management and Certification Regimes. (See References under the Senior Management and Certification Regimes)
  • New rules for providing references under the Senior Management and Certification Regimes come into force on 7 March 2017. (See Reference rules from 7 March 2017)
  • When supplying a reference, a previous employer is required to disclose all relevant information of which it is aware. (See Information to be disclosed)
  • An employer supplying a reference owes a duty to both its former employee and the recipient firm to exercise due skill and care in the preparation of the reference. (See Information to be disclosed)
  • Employers should consider either refusing to include a standard reference within a COT3 or settlement agreement or including a clause in the agreement limiting a standard reference to a non-regulated role. (See Settlement agreements)