The Training and Competence sourcebook (TC) changes

• The FCA is proposing to amend TC rules. More notifications, more information flowing around between the professional bodies and the FCA. In particular, the FCA will require firms to notify the relevant accredited bodies when notifying it of certain significant events concerning the failure to comply with Statements of Principle and Code of Practice for Approved Persons (APER) or Code of Conduct (COCON) by the firms' retail investment advisers.  This means breaches may have to be notified to the accredited body, just as it is notified to the FCA. There is the possibility therefore that in line with Fit and Proper assessments, any criminal offences occurring outside of the workplace may have to reported to the accredited body alongside the expected report to the FCA; certainly outstanding court actions, such as unsatisfied CCJ’s on retail advisers, may mean that the accredited body refuses to grant an SPS.  The reporting requirements are already onerous and we await to see the practicalities and implementation of such proposals….see  https://www.fca.org.uk/firms/regulatory-reporting/adviser-reporting-requirements
• CAS status  – Competent Adviser Status changes.  If an adviser works outside their CAS status, or loses it (as defined by the firm’s compliance director) then this is notifiable not just to the FCA, using http://www.fca.org.uk/your-fca/documents/competence-notification-submission-form but also to the professional body under the new proposals. See here for the FCA side of the reporting https://www.fca.org.uk/firms/regulatory-reporting/adviser-reporting-requirements  and now you ALSO have to send this information to the accredited body. More power to the elbow of compliance directors, more reporting requirements and a requirement for full and detailed records on advisers that are easily accessible and providable to third parties.  

They are watching you!

The ethical behaviour and competence of individual advisers is very important and this notification requirement gives FCA insights into your business in a very granular way, including giving the FCA a clear view of advisers as they move between firms.

See here for IFAC’s official guide. https://ifac.eu/download/get_file.php?download_id=Y2MvcWJOR2ZZb1dnWlFGRmFtV0JwQT09