CHW01-Fit and Proper Persons: Directors Policy

Registration Number: {{org_field_registration_no}}

Fit and Proper Persons: Directors Policy

1. Purpose

This policy sets out the requirements and procedures for ensuring that directors of {{org_field_name}} meet the Fit and Proper Persons criteria, as mandated under the Regulation and Inspection of Social Care (Wales) Act 2016 and the Regulated Services (Service Providers and Responsible Individuals) (Wales) Regulations 2017. This policy ensures that only individuals with the necessary skills, knowledge, experience, and integrity are appointed as directors, ensuring safe, high-quality care for all service users.

2. Scope

This policy applies to all current and prospective directors of {{org_field_name}}, including executive and non-executive directors, shadow directors, and any individual with significant influence over the organisation’s governance.

3. Legal and Regulatory Framework

This policy aligns with:

Regulation and Inspection of Social Care (Wales) Act 2016
The Regulated Services (Service Providers and Responsible Individuals) (Wales) Regulations 2017
The Regulated Services (Registration) (Wales) Regulations 2017
The Regulated Services (Annual Returns and Registration) (Wales) Regulations 2019
Care Inspectorate Wales (CIW) Guidance on Fit and Proper Persons Test
Criminal Enforcement Policy (CIW, 2023)

4. Fit and Proper Persons Criteria

Each director must satisfy the following criteria to ensure their suitability for governance roles:

4.1 Good Character and Integrity

Directors must demonstrate honesty, accountability, and ethical behaviour, ensuring that governance decisions are in the best interests of service users.
CIW will review directors’ backgrounds, ensuring no history of fraud, dishonesty, abuse, or exploitation.
Directors must uphold human rights, equality, and dignity principles in line with CIW’s Commitment to Human Rights.

4.2 Relevant Qualifications and Experience

Directors must possess relevant professional qualifications and demonstrate experience in social care, governance, risk management, or financial oversight.
They must stay updated with the latest social care policies, CIW regulations, and risk management strategies.

4.3 Financial Competency and Business Integrity

Directors must not have outstanding disqualifications under company law or financial misconduct records.
They must have no history of bankruptcy, insolvency, or mismanagement of a care service.

4.4 Compliance with Regulatory and Legal Requirements

Directors must comply with all CIW regulations, safeguarding laws, and employment legislation.
They must ensure the organisation remains compliant with the Securing Improvement and Enforcement Policy (CIW, 2024).

4.5 Health and Fitness to Perform Duties

Directors must be physically and mentally fit to perform their role, ensuring sound decision-making.
Health declarations may be required as part of fit and proper person assessments.

5. Recruitment and Appointment Procedures

The recruitment of directors follows a transparent, structured process to assess candidates against the fit and proper persons test.

5.1 Due Diligence and Background Checks

Prior to appointment, the following background checks will be conducted:

Enhanced Disclosure and Barring Service (DBS) Check to confirm no criminal history related to fraud, abuse, or financial misconduct.
Professional Reference Checks from previous employers or governing bodies.
Identity and Right-to-Work Verification.
Company Director Disqualification Checks via Companies House.

5.2 Declaration of Suitability

All directors must complete a self-declaration form, confirming:

They meet all Fit and Proper Persons requirements.
They have not been disqualified under CIW, financial, or criminal enforcement laws.
They have no conflicts of interest affecting their ability to govern fairly.

Failure to disclose relevant information or providing false statements may result in disqualification.

6. Ongoing Monitoring and Compliance

To ensure continued compliance, the following monitoring measures are in place:

6.1 Annual Fit and Proper Persons Review

Directors must reaffirm their suitability annually through a declaration and review process.
This will include a review of any new criminal convictions, disqualifications, or fitness concerns.

6.2 CIW Regulatory Compliance Audits

CIW may conduct unscheduled compliance checks to assess directors’ suitability.
Directors must fully cooperate with CIW inquiries.

6.3 Whistleblowing and Reporting Concerns

Staff and stakeholders are encouraged to report concerns about a director’s suitability via the Whistleblowing Policy (CHW29).
All concerns will be investigated confidentially, with potential referral to CIW or other authorities if required.

7. Managing Non-Compliance and Disqualification

Where a director fails to meet the Fit and Proper Persons criteria, the following steps will be taken:

7.1 Immediate Investigation

Any concerns raised will be investigated by the Board and Responsible Individual.
The director may be suspended pending investigation.

7.2 Removal from Post

If a director is found unfit for their role, they will be immediately removed under CIW regulations.
CIW and Companies House will be notified of the removal, and legal action may be taken if necessary.

7.3 Appeals Process

Directors have the right to appeal against disqualification decisions via a formal review panel.

8. Related Policies

This policy should be read alongside:

Fit and Proper Persons: Employed Staff Policy (CHW02)
Good Governance Policy (CHW04)
Whistleblowing (Speaking Up) Policy (CHW29)
Safeguarding Adults from Abuse Policy (CHW13)
Compliance with the Care Act 2014 Policy (CHW06)
Disciplinary and Grievance Policy (CHW31)

9. Policy Review

This policy is reviewed annually or whenever legislative or regulatory changes occur. Any updates will be communicated to CIW, staff, and directors.

Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
Copyright © {{current_year}} – {{org_field_name}}. All rights reserved.