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Regulation | 13
T&C comes of age
Joanne Smith, chief executive & creative officer
at The Consulting Consortium, looks at training
and competence and the FSA
raining and Competence (T&C) instead of limiting it to the basics required by the importance of firms not losing focus on their
T
will shortly have its coming of age. regulations. For example, in the days of T&C regulatory responsibilities. This has been
This has involved almost 18 years infancy we generally applied the regime to the illustrated by the regulator handing out a record
of development from the days of minimum that we could get away with – just to 55 fines in the year ended 31 March 2009,
its infancy when we had to divide the customer facing sales representatives. Then as according to figures from city law firm Reynolds
up our company representatives time progressed we began to embrace the Porter Chamberlain. It added that the FSA also
under LAUTRO’s requirements benefits of having a well trained, knowledgeable, prohibited more individuals or firms, 46 in total,
into categories A B and C. This meant entire sales skilled and competent back office and extended from carrying out regulated activity than in all
forces being taken off the road for retraining and training there. previous years put together. The research from
when the role of the T&C supervisor was the There remain two areas which exercise my the law firm also shows that the average fine
filling in the sandwich between compliance and mind on T&C issues – one relates to the “annual handed down by the FSA in 2008-9 amounted to
the sales force. sheep-dipping” approach that is needed on £497,000 compared with £212,000 in the
And in the future we have an increasing statutory or desirable training areas such as anti- previous financial year. Even after taking out
number of challenges facing intermediary firms money laundering, treating customers fairly, data fines handed out worth more than £1 million,
of all sizes. Yet despite this ‘coming of age’ have security and diversity. This can be a real trial for the average fine still increased 20 per cent from
things really moved on? Just a few months ago, trainers and staff alike as it is often hard to say £111,000 to £133,000.
FSA chief executive Hector Sants, when something new and unusual. We have started
addressing the Reuters Newsmakers conference experimenting with immersive gaming using the Supervision
on 12 March and, speaking of the resource and latest technology to turn these learning There is no doubting that the FSA will continue
T&C requirements of his own staff, said: “by the experiences into fun games with real life keeping a close watch on firms via its day-to-day
end of 2009, we will have 280 extra specialist and scenarios. The staff love them, they deliver all the supervision. T&C assessments remain a vital
supervisory staff which will represent a 30 per learning outcomes and provide evidence on our element in proving an adviser's competence and
cent increase in our supervisory capacity. To learning management systems that the training maintaining valuable management information.
ensure these individuals are properly equipped to has been delivered and the scores attained. Competence essentially means having the skills,
do this job we have introduced a new Training & Immersive learning is certainly one way that knowledge and expertise needed to discharge the
Competence scheme which involves a regulatory technology can provide an engaging, exciting yet responsibilities of an adviser's or supervisor's role
testing regime for existing supervisors. We have realistic simulation to communicate a range of and this includes achieving a good standard of
also ensured that we have the right mix between FSA principles by stepping outside of the ethical behaviour.
professional regulators and market practitioners.” textbook to stimulate the interest of all learners. In terms of financial services there is often a
I’m sure he cannot have meant it the way it Indeed by adapting a gaming mentality tick box mentality attached to most areas in the
sounds, because surely the FSA would be leading immersive learning can provide learning learning of regulatory requirements. The use of
by example and already have a suitably robust solutions for all firms who are serious about such technology however, can ultimately help to raise
Training & Competence scheme in place, areas and wish to ensure all their employees the bar by aiding the relevant parties in getting
enhanced by the right balance of regulators and understand their personal responsibilities. up to speed with these initiatives and
practitioners! requirements. It can also help form a greater
RDR understanding of practical scenarios to boost
Integral The second area causing some sharpening of performance both in how individual
However, it does go to show that T&C is not the one’s regulatory attention at the present is the businesses work and from a regulatory
ephemeral add-on which was the bane of our RDR and the potential knock-on implications perspective.
company representatives’ lives at birth and has for all firms be they mortgage brokers, IFAs, There is no doubting that Training and
transformed into an integral part of running a stockbrokers or asset managers. The key here is Competence is here to stay but in more
business properly and professionally. The move to make sure firms are aware of any changes in integrated and sophisticated ways for the
to principles-based regulation has helped this, as policy and, if applicable, do not leave any action benefit of the entire workforce, our clients and
companies now have to take a mature until the last minute. shareholders alike. Advisers across all sectors
appropriate and proportionate decisions for their There are constant reminders being issued by need to embrace it or simply become another
company’s professional standards for all staff the FSA about such matter and about the overall FSA statistic.
www.mortgageintroducer.com July/August 2009 Mortgage Introducer
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