Proving competence without a standard point of reference

Q: How can I prove my staff are competent if the Financial Services Authority does not insist on benchmark exams?

A: The Financial Services Authority seeks to ensure that the right thing is being done and also that it can be proved to be being done.

On one hand, the organisation is trying not to be prescriptive but on the other it is giving the insurance industry enough rope to hang itself.

However, while the responsibility for training staff is now overt and necessary, it has always been good business practice.

Concerned brokers can get guidance by looking at how the FSA deals with training and competency for independent financial advisers. The training and competency guidebook asks for four commitments from those carrying out control functions, to help ensure that employees are competent and also that they remain so. To this end, IFAs are subject to ongoing supervision and regular reviews.

While examinations are not the sole way of proving competency, they go a long way towards it. The key is to provide an audit trail - start with the job specification, match requirements to knowledge of staff and then fill in the gaps.