View more on these topics

FSA sets out proposals for stripped down T&C handbook

The FSA has set out proposals for a shorter and more outcome-focused training and competence sourcebook that will apply only to retail firms and business.

This is part of the FSA’s drive to simplify and streamline its handbook and remove prescriptive requirements. The new T&C regime will be founded on high-level rules and guidance but will retain exam requirements for retail business, which are still seen as essential to protect consumers.

The new regime will consist of a single high-level competence requirement which will apply to all UK authorised firms, including wholesale firms. This will be supported – for retail firms only – by a simpler T&C sourcebook, approximately one-third the length of the existing one. We have decided to keep the existing compulsory examination requirements for specified retail activities and the ‘safe harbour’ for firms who use exams taken from the Financial Services Skills Council (FSSC)’s list of appropriate examinations.

The longer-term aim is to be able to remove the T&C sourcebook altogether and rely on high-level competence requirements across all sectors. However, this will not happen until the FSA is satisfied that firms have in place effective ways of achieving appropriate and consistent standards in the T&C area. The FSA will keep the position under review.

The FSA is already committed to disapplying its detailed T&C rules for wholesale business and to making the changes needed to ensure that this regime complies with the Markets in Financial Instruments Directive.

All the proposed changes to the T&C regime will come into force on 1 November 2007, when MiFID is implemented.

FSA director of retail policy Dan Waters says: :

“Our proposals are the result of a ‘blank sheet of paper’ review of our T&C regime. This is all part of our move to more principles-based regulation. As with the changes we’re proposing for the Conduct of Business sourcebook, we believe the new T&C regime will give firms more flexibility to achieve the outcomes we want in a way that suits them best. The new T&C Sourcebook is much simpler, shorter and more user-friendly. There is, though, no question of lowering the competence standards we expect of firms and their staff – these play a key role in protecting consumers.”

Recommended

Standard rethinks client contact policy after talks with Aifa

Standard Life has revised its process for contacting with-profits policyholders after being accused of undermining IFAs.It received complaints from advisers after sending out guidance entitled “Moving Away Could Damage Your Wealth”, direct to policyholders.In a leaked memo to an adviser, Standard explained it was concerned about the volume of money moving out of its with-profits […]

Sesame launch retirement planning seminars

Sesame is to host a series of 21 technical seminars to provide advisers with an insight into pre and post-retirement markets. The seminars will be held at locations across the UK until March 15, tackling a range of pension-related issues, including an update on pensions post A-Day, developments in the Sipp market and changing consumer […]

Glorious Talmud

New cautious funds prove the historically known worth of spreading assets.

Power tools

Over the last month, there has been an intense debate in Money Marketing concerning the correct approach to asset allocation. Much of the discussion has focused on the correct interpretation of Brinson, Hood and Beebower’s seminal 1986 work on the subject, The Determinants of Portfolio Performance, and its subsequent updates.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com