Competence compliant

Back in January 2005, when Financial Services Authority statutory regulation was introduced, there was a feeling that it would be just the beginning of the process, and so it has proved. Regulation adapts according to the regulatory climate, the dynamics of the market and the effect that rules have both on firms and on the customers whose interests they are designed to protect.

With regard to training and competence (T&C) there will indeed be some changes, effective from 1 November, as there will also be to complaints procedures.

The FSA is looking to streamline rules and be less prescriptive, resulting in the new T&C sourcebook being about a third of the size of its predecessor. The FSA says that it does not expect any reduction in competence standards.

However, before you get too excited, a word of warning. The FSA has introduced an overarching competence rule in the high level SYSC sourcebook, effectively leaving individual firms to decide how best to implement procedures. This is fine, provided you understand the requirements.

Space does not allow me to go into a huge amount of detail here, suffice to say there are implications in areas such as the training of supervisors, identifying training needs, record keeping and the T&C policies of any appointed representatives.

So, to answer your question, take a look at the FSA website for yourself or speak to your compliance consultant, as they will be gearing up to make you aware of what you will have to do.

- Ian Ritchie, Managing director, RW Associates.