GIGI 4.1 Training and competence

This chapter of the Guide summarises the training and competence requirements that apply to insurance intermediaries, which are in the Training and Competence sourcebook (TC).

You must ensure that, for any staff who give advice to retail customers, you comply with Chapters 1 and 2 of the sourcebook (TC 1and TC 2). For any other employees who are associated with insurance mediation activities, only TC 1 applies.

TC 1 contains the Commitments. These provide guidance to Principle 3 (management and control) of the Principles for Businesses (see Part 1 Chapter 3). Under the Commitments it is your responsibility to ensure that individuals:

1. (1)

   are (and remain) competent for the work that they do;

2. (2)

   are appropriately supervised;

3. (3)

   have their competence regularly reviewed; and

4. (4)

   have a level of competence appropriate for the nature of their business.

TC 2 contains more detailed rules and guidance about recruitment, training, attaining and maintaining competence, supervising and monitoring and record keeping. There is no requirement for insurance intermediaries dealing with non-investment insurance contracts to pass an examination as part of the process of attaining competence.

Our rules do not specify the level of competence required. It is a matter for firms to decide what competence is necessary for their employees to perform their role effectively and comply with the relevant regulatory requirements.