Training and Competence (TC) is a major strand has been a feature of the Financial Services Authority (FSA) rule with the primary purpose being to ensure standards of competence in financial services.  Recent initiatives have had a major impact on its application. These include: 

• Publishing of FSA PS10/18 – Competence and Ethics (Dec 2010) which included strengthening and a refocus on certain elements of TC
• Implementation of the Raising Professional Standards proposals as part of the FSA Retail Distribution Review (RDR) 

To ensure there was consistent quality guidance regarding the application of TC requirements, we developed in conjunction with a steering group of critical industry partners, the TC Standards and Good Practice Guidance 2011, sponsored by Redland Business Solutions. The guidance does not replace the rules, but it does:

• Raise awareness and understanding of TC and the obligations for firms, particularly senior managers, in a principles based environment
• Promote consistent TC practice within clearly defined industry benchmark standards 
• Provide access to common and effective guidance to enable firms to focus on the outcomes they wish to achieve

The Guidance provides access to a portfolio of high quality resources, freely available to all firms. It includes:

• TC Outcome Standards - rule based guidance with specific and detailed application for firms whose employees fall in scope of the TC Sourcebook
• Good Practice Guidance - designed to prompt all firms to consider what is realistic to achieve through the application of good training and competence practice
• Good Practice Guidance for retail SME firms / Good Practice Guidance for RDR Implementation – practical guidance for smaller retail advice firms and those firms seeking to implement and comply with the RDR rules and requirements for professionalism
• National Standards of Competence for TC - links to the published occupational standards relevant to those responsible for delivery of good TC

Firms can use the resources in different ways, based on their size and complexity and the market sector they operate in. For example:

• As a benchmark of current policy, practice and role performance
• As a blueprint for a TC Scheme or arrangement
• As a reference guide
• As a source of external good practice
• As a means of improving the effectiveness of current training delivery
• For audit purposes
• To improve standards

 For further information on the application of Training and Competence, please contact Sarah Thwaites.