What is a fit and proper test
A fit and proper test is a necessary legal stage that must be carried out during the acquisition of a broker license. In order for a brokerage company to acquire a broker license and thus conduct brokerage services, they must first complete a fit and proper test.
DeltaQuest can assist you with all of your fit and proper test requirements. We provide guidance and advice on the requirements of passing a fit and proper test successfully in all major jurisdictions that regulate forex business and investment business. View our Fit and Proper Test service page for further information.
Fit and proper test explained
A fit and proper test is an important part of the registration and forex licensing process. It is conducted by the designated regulatory body of the jurisdiction in which the forex company is established. The aim of the fit and proper test is to assess the participant’s suitability as a forex company owner, and to prevent unsuitable people from running a forex brokerage or investment business.
A fit and proper test covers a range of assessment criteria to ensure that the person or people under test have been approved by the authorities. This will ensure that those individuals being assessed have the relevant knowledge and expertise in place to run a forex company. In addition to the above, a fit and proper test also assesses a forex company’s level of professional efficiency. Without positive fit and proper test results, a forex brokerage will not be considered a reliable or professional institution.
Once all criteria have been approved and the fit and proper test has been passed, certification is provided, which enables the licensing and registration procedures to continue and the forex company formation process to continue.
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