Training and competence—accredited bodies
Training and competence—accredited bodies

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Training and competence—accredited bodies
  • The Retail Distribution Review and the Training and Competence sourcebook
  • What is an accredited body?
  • The process of accreditation
  • Verification services
  • Systems and controls
  • Ongoing co-operation with the FCA
  • When will accreditation be withdrawn?

The Retail Distribution Review and the Training and Competence sourcebook

The Financial Conduct Authority (FCA) created the status of 'accredited body' following a lengthy consultation process instigated by the Financial Services Authority (FSA) in 2006. In 2008, the FSA published its final statement on the Retail Distribution Review (RDR) which introduced new professionalism standards for retail investment advisors. Further information on the RDR can be found in Practice Notes: Retail Distribution Review and Retail Distribution Review and the regulator. In December 2012, the standards came into effect through changes in the rules contained in the Training and Competence sourcebook (TC) of the FCA Handbook.

The RDR raised the benchmark qualification level for all 'retail investment advisers,' meaning employees who:

  1. give personal recommendations on securities (other than stakeholder pension schemes, personal pension schemes or broker funds)

  2. give personal recommendations on derivatives

  3. give personal recommendations on retail investment products (other than broker funds)

  4. give personal recommendations on Friendly Society tax-exempt policies (other than Holloway sickness policies where the Holloway policy special application conditions are met)

  5. give personal recommendations on and deal in securities (other than stakeholder pension schemes, personal pension schemes or broker funds)

  6. give personal recommendations on and deal in derivatives

Retail investment advisers are required by the TC to:

  1. attain each module of an appropriate qualification

  2. complete at least 35 hours

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