Get T&C in train

It is clear that you have spent time preparing and maintaining a compliant stance. However, in the area of training and compliance, you must be careful. It sounds as if you need to either revisit, or develop from scratch, your T&C plan, and you may need some specialist help to do this.

It is a dangerous assumption that, because staff have been with you for a while, they must be fully trained. Remember that the rules say staff must be competent for the work they undertake. You may feel that they are, and I can understand that, but how would you prove this to an external party, for example, the Financial Services Authority. Do you have a reliable method of carrying out assessments of competence?

In its enquiry, the FSA will have asked about the competence of your supervisors. If your response indicates that you have not recognised or realised the need for appropriate regulatory supervision of your staff, then that may sound warning bells. Again, help is available in the form of supervision training courses.

You say your staff are all experienced, however, you need to plan for new additions or a replacement should someone leave. In a regulated environment, you cannot leave these matters to be dealt with as and when they arise; you must have a plan.

The FSA's letter will also have requested sight of your training and testing material for new and existing staff, as well as staff training files. I am not sure how you responded to that request but, as the FSA sifts the answers to its review, I would suggest you move quickly to address the shortfalls that clearly exist.

Your letter serves as a reminder to others in a similar situation who did not receive a letter. Review your T&C plan now; engage external help if you need it. Remember, when you made your application to the FSA, perhaps nearly two years ago now, you did say that you had, or were working towards, having a T&C plan in place by January 2005. It is now February 2006, so there really is no excuse.