What is an 'approved person' in the context of FCA regulation?

An 'approved person' in the context of FCA regulation refers to an individual who has been granted specific approval to perform designated roles in a regulated firm. This designation is critical because approved persons occupy positions that require a certain level of trust and responsibility, such as senior management and those involved in specific regulated activities.

The FCA aims to ensure that individuals in these positions demonstrate the necessary competence, integrity, and financial probity to protect consumers and maintain the integrity of the financial markets. The process for becoming an approved person typically involves a thorough assessment of an individual's qualifications, experience, and fitness for the role they are to occupy within the firm.

The other options do not align with the definition provided by the FCA. Processing financial transactions or being a generic term for all employees does not reflect the specific regulatory approval required for certain roles. Likewise, a title for users of financial apps does not pertain to the roles defined by the FCA, illustrating that 'approved person' has a focused and regulatory significance in the financial sector.