|
The Financial Services Authority (FSA), on Friday, confirmed the introduction of a more outcome-focused and flexible Training and Competence (T & C) regime, in part, driven by the requirements of MiFID, and including a new, shorter, simpler and more principles-based T & C Sourcebook one third of the length of the current one.
The new T & C regime comes into force on 1st November 2007 and is based on high-level rules and guidance, but will retain the existing exam requirements for retail business. This revision is part of the FSA's drive to simplify and streamline its Handbook. Also, under MiFID, FSA will no longer be able to impose exam requirements on inwardly-passporting MiFID firms from the European Economic Area. Handbook changes include:
- introducing a new, overarching competence rule in the Senior Management Arrangements, Systems and Controls sourcebook which will apply to all UK authorised firms, including wholesale firms,
- replacing the existing T & C sourcebook with a simpler, shorter, principles-based sourcebook for retail firms only which will be more outcome-focused and user-friendly and will comply with MiFID changes, but retaining the existing compulsory exam requirements for specified retail activities,
- retaining the current 'safe harbour' for firms who use exams from the Financial Services Skills Council (FSSC)'s list of 'appropriate examinations', and giving due recognition to exams passed by employees of firms not subject to an exam requirement (e.g. those carrying out wholesale business) where they choose to use exams approved by the FSSC to demonstrate compliance with the knowledge element of the competence requirement.
Dan Waters, FSA Director of Retail Policy, said "The new T & C regime is the result of a comprehensive review of our T & C requirements, conducted as part of our move to more principles-based regulation. We believe the new regime will give firms more flexibility to achieve the outcomes we want in a way that suits them best. There is, though, no question of lowering the competence standards we expect of firms and their staff – these play a key role in protecting consumers".
| 
