TC 2.4 Attaining competence

A firm must not permit an employee to engage in or oversee an activity unless:

1. (1)

   the employee has been assessed as competent in that activity in accordance with TC 2.4.5 R; or

2. (2)

   the employee engages in or oversees the activity while under appropriate supervision; or

3. (3)

   the employee has been assessed in accordance with TC 2.4.5 R as competent to engage in or oversee a particular activity, but then engages in or oversees in a different activity, then the employee is appropriately supervised until assessed as competent in that new activity.

A firm which permits an employee to engage in an activity with or for a private customer under supervision must ensure that:

1. (1)

   the employee has first passed the relevant regulatory module of an appropriate examination; and2

2. (2)

   the firm has satisfied itself that the employee has an adequate level of knowledge and skills to act with or for private customers while under supervision2.

If a firm permits an employee under supervision to engage in:

1. (1)

   advising on investments which are, and dealing with or for clients in, securities (other than stakeholder pension schemes or broker funds), derivatives or both such securities and derivatives; or2

2. (2)

   the activity of a broker fund adviser; or

3. (3)

   advising on syndicate participation at Lloyd's; or

4. (4)

   the activity of a pension transfer specialist;

the firm must ensure that the employee has first passed an appropriate examination before permitting the employee to engage in the relevant activity.2

A firm must not assess an employee as competent to engage in or oversee an activity unless the employee:

1. (1)

   has been assessed as competent to apply the knowledge and skills necessary to engage in or oversee the activity without supervision; and

2. (2)

   has passed each module of an appropriate examination2.