FSA publishes competence requirements

04 Jun 2010 at 11:28

Handbook will list qualifications needed to carry out role

The FSA has published plans to boost both the competence requirements and ethical standards for individuals carrying out retail activities in the financial services.

Under the proposals, individuals will have 30 month to complete all modules of the qualification required to carry out their role.

A list of qualifications that meet the regulator’s requirements will be published in the FSA Handbook in order to ensure firms and individuals will have an easily accessible and comprehensive source of approved credentials.

The proposals will also remove some transitional provisions which allow individuals to operate without formal qualifications, due to the arrangements under their previous regulator.

Further proposals outlined in the document clarify how individuals carrying out approved persons roles should demonstrate a good standard of ethical behaviour.

They will be expected to act in the interests of their client, avoiding consumer detriment and taking responsibility for their own level of competence.

The proposals seek to increase standards of professionalism across the industry, complementing the Retail Distribution Review plans and rules that are already in place for investment advice.

Sheila Nicoll, FSA director of conduct policy, said: “Competence and ethics are key elements of our regulatory regime and we have increased our scrutiny of individuals working in the financial services industry over the last few years.

“Ultimately it is in a firm’s commercial interest to recruit, train and retain good quality individuals but regulation ensures that standards of competence and ethics are maintained at an appropriate level.”

 

(Insurance Times 4 June, 2010)