Training And Competence

Question 1

There is a requirement that all staff in an authorised investment farm are competent.

Additionally, for staff performing certain specified activities affecting retail customers, they must ensure that the employee:

Answer 1

1. Has been assessed as competent in the activity.
2. Is supervised.

Level and intensity of supervision will be significantly greater in the period before the firm has assessed the employee as competent than afterwards

The firm should have clear criteria and procedures relating to the specific point at which the employee is assessed as competent.

Question 2

When a firm permits an employee to give advice on packaged products to retail customers under supervision -

What must they ensure?

Answer 2

1. The supervisor has passed an appropriate examination.
2. The employee has an adequate level of knowledge and skill.

Question 3

A firm must ensure that the employee has passed the appropriate qualification where the employee is permitted, under supervision, to engage in activities -

What are the list of activities here?

Answer 3

1. Advising on investments, dealing with/ for clients in securities and/or derivatives
2. Activity of a broker fund advisor - managing funds/ advising on fund strategies
3. Advising on syndicate participation at Lloyd’s -
   Advising on investments in insurance
4. Activity of a pension transfer specialist -
   Advising clients on moving their pension savings

Question 4

Firms must review on a regular and frequent basis - the employees’ competence and take appropriate action to make sure they remain competent for their roles.

What should be taken into account when competence is being reviewed?

Answer 4

1. Technical knowledge and its application.
2. Skills and expertise.
3. Changes in the market and products, legislation and regulation