AMI said its guide, entitled‘Training & Competency. What every firm needs to know’, illustrated that T&C rules covered more than qualifications. It said that from a firm’s senior managers to its advisers and back-office staff, the setting up and management of an effective T&C Scheme was essential.
The trade body added that the regulator’s handbook had important outlines but each firm needed to decide how much more was required above the core requirements.
The AMI guide has been designed to help members assess their current T&C situation and determine where improvements are needed. For example, more emphasis will need to be put on the ‘softer’ communication skills of advisers. AMI said those who are competent at this would be able to prove their clients had really understood what had been offered to them and so attract fewer complaints.
Chris Cummings, director of AMI, commented: “Under the MCCB, the focus of T&C was on passing examinations. However, the FSA is at least as focused on ensuring firms can demonstrate ongoing competency. This starts with a firm understanding its own business risks, putting a T&C scheme in place and regularly reviewing it.”
Robin Gordon-Walker, spokesman at the FSA, said: “We haven’t seen the guide but we are sure members will find it useful. But there is no great issue here. There is no new radical way in dealing with T&C. In fact it is more open and general now. We have had no feedback that brokers are struggling with the rules.”
