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Relevant rule

Amendments

TC 2.1.1R(1)

Insert the following at the end of TC 2.1.1R(1):

“In addition, a firm must not assess a relevant individual as competent unless the firm has satisfied itself that the relevant individual possesses the knowledge and competence to enable the firm to meet its obligations under SYSC 5.1.5ABR. This means that the relevant individual has also:

(a) obtained appropriate experience which means that the relevant individual has successfully demonstrated the ability to carry on the activities through previous work experience. This work must have been performed, on a full-time equivalent basis, for a minimum period of 6 months; and

(b) attained an appropriate qualification which means a qualification or other test or training course that meets the criteria set out by the ESMA guidelines referred to in TC 1.1.1BG3.

The level of knowledge and competence needed to fulfil the firm’s obligations reflects the scope and degree of the activities, as described in TC 4.1.2R above, carried out by the relevant individual.”

TC 2.1.2R

The provision is amended by adding after TC 2.1.2R:

“A relevant individual, who has not acquired the necessary knowledge or competence to carry out the activities in TC 4.1.2R above, cannot provide those activities under supervision for a period exceeding 48 months.”

TC 2.1.5R(1)

The provision is amended by adding after TC 2.1.5R:

“Where a relevant individual has not acquired the necessary knowledge and competence to carry out the activities described in TC 4.1.2R above:

(a) the firm must ensure that the individual supervising the relevant individual:

(i) has been assessed as competent to provide such personal recommendation or information;

(ii) has the necessary skills and resources to act as a competent supervisor; and

(iii) takes responsibility for the personal recommendation or information, referred to in TC 4.1.2R above, provided by the relevant individual under supervision as if the supervisor is providing the personal recommendation including any suitability report (COBS 9) or information; and

(b) the firm must ensure that the supervision provided to a relevant individual is tailored to the services provided by the individual.”

TC 2.1.1R(1)

The provision is amended by adding after TC 2.1.1R(1):

‘A firm must ensure that a relevant employee’s appropriate knowledge and ability includes the requirements set out in SYSC 28.2.3R and is appropriate to the:

(a) role and activity carried out by the relevant employee within the firm; and

(b) type of distribution and the nature of the products sold.’

TC 2.1.15R ; TC 2.1.17R; TC 2.1.24R and TC 2.1.25R

The rules apply as if references to retail investment advisers included ‘relevant employees’.

TC 2.1.15R

(1)

For firms whose relevant employees are not also retail investment advisers, the rule applies as if ‘35 hours’ was a reference to ‘15 hours’.

(2)

The rule is amended by adding at the end:

‘Where the relevant employee is also a retail investment adviser, the minimum 35 hours appropriate continued professional development requirement in TC 2.1.15R must include a minimum 15 hours covering the requirements in SYSC 28.2.3R.’

TC 2.1.16G

For relevant employees acting in that capacity, the guidance is replaced by the following:

‘To meet the requirements in TC 2.1.15R (as modified by TC 4.2.5R) a relevant employee’s continued training and development can encompass various types of facilitated learning opportunities including courses, e-learning and mentoring.’

TC 2.1.18G , TC 2.1.19G, and TC 2.1.23G

The guidance applies as if references to retail investment advisers included ‘relevant employees’.

TC 2.1.24R

The rule is amended by adding after TC 2.1.24R(2):

‘the firm must be in a position to make available to the FCA, on request, the name of the person responsible for this record keeping requirement.’

TC 3.1.1R

The provision is amended by adding after TC 3.1.1R(3):

‘a firm must keep an up-to-date record of the continued professional training or development completed by each relevant employee in each 12 month period,

(a)

for not less than 3 years after the relevant employee stops carrying out the activity; and

(b)

the firm must be in a position to provide any version of the record to the FCA on request.’