The FSA maintains a specific Handbook, the Training and Competence Sourcebook (TC) to deal with this all-important regulatory requirement. Whilst this Sourcebook defines the standards that your organisation should achieve, the FSA will expect you to make your own arrangements to meet these standards. These standards include -

Assessment of Competence (TC 2.6.1)

The FSA's 'Threshold Conditions' clearly state that a firm must satisfy the FSA that they employ fit and proper persons to carry on a regulated activity and that such criteria includes an assessment of the competence of management and staff and that there is a requirement to maintain this competence for all those engaged in, or overseeing, regulated activities.

Maintaining and Enhancing Competence (TC 1.1.3)

Principle 3 of the FSA Principles for Business, makes it clear that it is an organisation's own responsibility to ensure that they are 'making proper arrangements for any employee associated with a regulated activity to achieve, maintain and enhance competence'.

The Knowledge Required (TC 2.6.2)

They also state that maintaining competence for an employee should take into account technical knowledge and its application, skills - their application and development, and changes in the market and to its products, legislation and regulation.

Ongoing Assessment and Monitoring (TC 1.1.3)

Principle 3 also states that firms should 'take reasonable care to establish and maintain such systems and controls as are appropriate to its business' and make it clear that these 'systems and controls' should include ongoing assessment and monitoring of the competence of each individual in a regulated role.

Maintaining Records (TC 2.7.6)

A firm must make and retain continuous records of the criteria applied in assessing initial and ongoing competence and how and when the competence decision was arrived at. These records must be retained for at least 3 years after the cessation of an employee's appointment with the firm.

Recruitment Procedures (TC 2.2.1)

The assessment of an employee's competence to undertake a regulated activity starts at the point of recruitment and a firm's recruitment procedures must incorporate procedures to ensure that the knowledge and skills of the individual relate to those required for the role.

Training (TC 2.3.1)

A firm must 'at intervals appropriate to circumstances, determine the training needs of these employees and organise training to address these needs' …. ensuring that …..'training is timely, planned, appropriately structured and evaluated'.