Neil Johnstone provides an update on supervision procedures.

One of the issues, covered by solicitor Nicholas Thorpe, related to the writing of references. He looked at why HR should not give an approved person – whose contract has been terminated for reasons of poor performance – a glowing reference to speed their departure or help avoid an unfair dismissal claim. And addressed whether or not it would appropriate for HR to give the employee a ‘tombstone’ reference – ie one that contains only the person’s name, dates worked and job titles.

According to Nicholas, in this situation, HR has three competing obligations that must be balanced. First, the firm owes a duty of care to the former employee. Second, it is obliged not to give a misleading reference to the new employer and third, it must meet its obligations to the Financial Services Authority.

As the morning progressed, Nicholas, and the team from FFW – partner Richard Kenyon and solicitors Neil Johnstone and Graham Busby – also provided updates on how the Better Regulation Initiative, the Markets in Financial Instruments Directive (MiFID) and changes to the FSA handbook will impact HR professionals.

Neil focused on controlled functions and the approved persons regime, recruitment, internal transfers, and training and competence, while Nick tackled senior management responsibilities, personal transactions and inducements, issues relating to disciplinary action and dismissals, and references - as touched on above.