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Training and competence: financial services

Updating author: Paul Ellison
Consultant editors: Nick Thorpe and Neil Johnston

Summary

  • Individuals must have the necessary skills and training to perform their role and must be appropriately supervised until they are competent. (See The Training and competence sourcebook)
  • Training and competence requirements are ongoing and must be demonstrated as a continuing process. The Markets in Financial Instruments Directive (2014/65/EU) creates a high-level competency requirement, known as the "competent employees rule", that applies to all UK-authorised firms, including wholesale firms. (See Competence requirements)
  • There is a 48-month limit on the amount of time that an individual has to pass an “appropriate examination” where this is required. (See Appropriate qualifications)
  • In certain circumstances, an employee may be exempt from the requirement to have passed each module of an appropriate examination. (See Appropriate qualifications)
  • The Financial Conduct Authority (FCA) requires firms to make and keep appropriate records to demonstrate compliance with the rules in the Training and competence sourcebook. (See Record-keeping)