The following Financial Services guidance note provides comprehensive and up to date legal information covering:
This Practice Note explains the Financial Conduct Authority's (FCA) Training and Competence (TC) regime. The regime supports the FCA's consumer protection objective, which aims to ensure that employees who deal with customers in the regulated financial services market are competent and suitably qualified to do so.
The TC regime consists of:
a high-level competence requirement (the ‘competent employees rule’) which applies to individuals engaged in the regulated activity in all UK-authorised firms (including wholesale firms) as set out in the Senior Management Arrangements Systems and Controls sourcebook (SYSC), and
more detailed requirements for certain retail activities, including the need to attain a qualification where relevant, as set out in the Training and Competence sourcebook (TC)
A firm must employ personnel with the skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them. This is known as the 'competent employees rule'. The competent employees rule is set out in:
SYSC 3.1.6 R for insurers
Article 21(1)(d) of Commission Delegated Regulation (EU) 2017/565 (the MiFID II Organisational Regulation) for common platform firms, and
SYSC 5.1.1 R for all other firms
When complying with the competent employees rule, a firm must take into account the nature, scale and complexity of its business and the nature and range of financial services and activities undertaken in the course of
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.