Large Firms Training & Competence (TC) Guide
All you need to know about training and competence within a Large Firm
The value to firms of having robust and effective Training and Competence arrangements and a culture that supports high standards of conduct and ethical behaviour has been brought into sharp focus by a combination of difficult market conditions and regulatory demands. The fallout from the financial crisis has further eroded the trust of consumers in financial services in general and the advice it provides to them, driving a commitment by firms towards higher levels of competence and professionalism. Regulatory interventions and rule changes over the period have all introduced a range of competence requirements.
Forward thinking firms will continue to embed, and rely on, a culture that seeks to improve and maintain quality standards through the provision of learning and development opportunities underpinned by reliable and compliant TC arrangements. The Financial Conduct Authority (FCA) started work in 2013 and has already published a paper “Journey to the FCA” which sets out how the UK’s new financial conduct regulator will operate. The key element is that firms will continue to remain responsible for the competence of their employees and/or regulated role holders. They will remain accountable for the competence arrangements operating within their business and must retain ownership of competence assessment and standards of performance.
This Guidance has been directly prepared to help firms that wish to implement or review their own internal arrangements in response to the requirements of the TC. This is a starting point for any TC scheme in that it helps firms assess and confirm compliance with TC rules. It will also provide guidance for firms in applying the ‘competent employees’ rule included in the SYSC Sourcebook. It is strongly recommended that firms consider using this guidance in other areas of their business not directly falling within scope of TC.
It should be noted that the Standards & Guidance is based on the TC rules in force from 1stJanuary 2013