The FSA’s proposals for cutting back on training and comp-etency is flawed, says the Securities & Investment Institute, which argues that long-term damage will occur if exams in the wholesale sector are removed.The regulator’s recent T&C proposal, CP 05/10, sets out to reduce costs and bureaucracy while focusing on retail consumers but the SII says it will only achieve a short-term fin-ancial gain. CP 05/10 plans to cut back the approved persons regime, which requires individuals to be registered to carry out any one of 29 controlled functions. The FSA says its focus on consumer protection is towards retail, trying to find a balance between consumers who are knowledgeable and those who are not. It says wholesale consumers are more savvy and able to look after themselves. The institute says this is risking people “throwing the baby out with the bathwater”, saying the register of APs is such a useful industry tool that it has offered to take over its admin from the FSA.