The FSA has finalised proposals to move from approved to appropriate exams, saying the change will lead to “greater flexibility” for firms in deciding which exams staff should take to be deemed competent.
The regulator and the Financial Services Skills Council have agreed a memorandum of understanding, outlining the future of the two bodies' relationship.
The changes will not take effect until the skills council has obtained its full licence and has published a list of appropriate exams, which the regulator expects by July 1.
The FSA says the changes place a “clear responsibility on the senior management of firms” to ensure training and competence needs of staff.
It has changed the rules for record-keeping so firms need only keep records now for three years after an employee stopped doing, or overseeing, a relevant role within the firm.