Training & Competence Obligations

Course Overview:

The FCA requires that all firms employ personnel with the ‘skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them’ – the ‘Competent Employees Rule’ found in SYSC 5.

Firms therefore have a general responsibility to ensure that their staff are, and remain up to scratch. Extra obligations are placed on staff who hold controlled functions under the FCA regime, for example, CF30 – the Customer Function.

When CF30’s deal with retail clients they are also bound by the requirements contained in the Training & Competence Sourcebook.

This course will cover all the obligations relating to training and competence, including ideas on how to devise an effective T&C regime, and how to assess competence and ensure it is maintained.

It will also provide delegates with an up to date picture of the FCA’s position on T&C, post Turner.

Course Content:

The Current Regulatory Regime

• Treasury, BoE & FSA become FPC, PRU and FCA from 1.1.13.
• Reasons for the change
• Dual regulation
• Intrusive regulation
• Conduct risk

Competent Employees and the Principles for Business

• Principle 6 – ‘A firm must pay due regard to the interests of its customers and treat them fairly’
• Principle 2 – ‘A firm must conduct its business with due skill, care and diligence’.

SYSC and the Competent Employees Rule

• SYSC 5 requirements
• Record keeping
• Recruitment and HR procedures
• Assessing and maintaining competence
• The Supervisory Enhancement Programme – FCA plans for the future
• Remuneration of Approved Persons

The Approved Persons Regime

• The Fit and Proper Test
• FCA procedure
• Statements of Principle for Approved Persons
• Code of Practice for Approved Persons

CF30 Duties

• CF30s who deal with retail clients
• Appropriate examination requirements
• Testing and supervision of CF30s