TC Training and Competence

Part

TC Training and Competence

Printed on: 01/11/2024

Rulebook at: 31/12/2012

Chapters

TC 1 Application and Purpose
TC 2 Competence
TC 3 Record Keeping
TC App 1 TC Appendix 1
TC App 2 Appendix 2
TC App 3 Appendix 3
TC App 4 Appropriate Qualification tables
TC App 5 Appropriate qualification criteria
TC App 6 Accredited bodies
TC App 7 Guidelines for qualification gap-fill for retail investment advice
TC App 8 Professional Standards Data Submission Form
Transitional Provisions and Schedules

TC 1

Application and Purpose

TC 1.1

Who, what and where?

01/01/2011

Who and what?

TC 1.1.1

This sourcebook applies to a firm where its employee carries on an activity in TC App 1 for retail clients, customers or consumers (subject to the limitations set out in TC App 3).

01/11/2007

Where?

TC 1.1.2

The territorial scope of this sourcebook is set out in TC App 2.

01/11/2007

Purpose

TC 1.1.3

The competent employees rule is the main Handbook requirement relating to the competence of employees. The purpose of this sourcebook is to support the FSA's supervisory function by supplementing the competent employees rule for retail activities.

01/11/2007

Meaning of competence

TC 1.1.4

In this sourcebook, competence means having the skills, knowledge and expertise needed to discharge the responsibilities of an employee's role. This includes achieving a good standard of ethical behaviour.

01/11/2007

TC 1.2

Actions for damages

01/01/2011

TC 1.2.1

A contravention of the rules in TC does not give rise to a right of action by a private person under section 150 of the Act (and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action).

01/11/2007

TC 2

Competence

TC 2.1

Assessing and maintaining competence

01/01/2011

Assessment of competence and supervision

TC 2.1.1

(1) A firm must not assess an employee as competent to carry on an activity in TC Appendix 1 until the employee has demonstrated the necessary competence to do so and has (if required by TC Appendix 1) attained each module of an appropriate qualification. This assessment need not take place before the employee starts to carry on the activity.
(2) A firm may assess an employee who is subject to, but has not satisfied, an appropriate qualification requirement as competent to the extent that:

(a) that employee works in a branch in an EEA State other than the United Kingdom;
(b) the employee is engaging in MiFID business; and
(c) there is no appropriate qualification or equivalent in that EEA State.

01/01/2011

TC 2.1.2

A firm must not allow an employee to carry on an activity in TC Appendix 1 without appropriate supervision.

01/11/2007

TC 2.1.3

Firms should ensure that employees are appropriately supervised at all times. It is expected that the level and intensity of that supervision will be significantly greater in the period before the firm has assessed the employee as competent, than after. A firm should therefore have clear criteria and procedures relating to the specific point at which the employee is assessed as competent in order to be able to demonstrate when and why a reduced level of supervision may be considered appropriate. At all stages firms should consider the level of relevant experience of an employee when determining the level of supervision required.

01/11/2007

Supervisors

TC 2.1.4

Firms should ensure that those supervising employees carrying on an activity in TC Appendix 1 have the necessary coaching and assessment skills as well as technical knowledge and experience to act as a competent supervisor and assessor. In particular firms should consider whether it is appropriate to require those supervising employees not assessed as competent to attain an appropriate qualification as well except where the employee is giving advice on retail investment products, see TC 2.1.5 R.

31/12/2012

TC 2.1.5

Where an employee is giving advice on retail investment products to retail clients and has not been assessed as competent to do so, the firm must ensure that the individual supervising and assessing that employee has attained an appropriate qualification.

31/12/2012

Qualification requirements before starting activities

TC 2.1.6

A firm must ensure that an employee does not carry on an activity in TC Appendix 1 (other than an overseeing activity) for which there is a qualification requirement without first attaining the relevant regulatory module of an appropriate qualification.

01/01/2011

TC 2.1.7

A firm must ensure that an employee does not carry on any of the following activities without first attaining each module of an appropriate qualification:

(1) [deleted]
(1A) advising on and dealing in securities which are not stakeholder pension schemes, personal pension schemes or broker funds;
(1B) advising on and dealing in derivatives;
(2) the activity of a broker fund adviser;
(3) advising on syndicate participation at Lloyd's; or
(4) the activity of a pension transfer specialist.

01/10/2011

TC 2.1.8A

A firm must ensure that an employee who was assessed as competent as a retail investment adviser for the purposes of TC 2.1.1 R at 30 June 2009 does not carry on the activity of a retail investment adviser without first attaining an appropriate qualification.

31/12/2012

Exemption from appropriate qualification requirements

TC 2.1.9

(1) If a firm is satisfied that an employee meets the conditions in this rule then the requirements to have attained each module of an appropriate qualification will only apply if that employee is carrying on one of the activities specified in this rule.
(2) The conditions are that a firm should be satisfied that an employee:

(a) has at least three years' up-to-date relevant experience in the activity in question obtained while employed outside the United Kingdom;
(b) has not previously been required to comply fully with the relevant qualification requirements in TC 2.1.1 R; and
(c) has passed the relevant regulatory module of an appropriate qualification;

but (b) and (c) do not apply to an employee who is benefiting from the "30-day rule" exemption in SUP 10.10.7B R, unless the employee benefits from that rule because he is advising retail clients on retail investment products or is a broker fund adviser.
(3) The relevant activities are:

(a) advising on investments which are retail investment products, if that advice is given to retail clients;
(b) the activity of a broker fund adviser;
(c) advising on syndicate participation at Lloyd's; or
(d) the activity of a pension transfer specialist.

31/12/2012

Selecting an appropriate qualification

TC 2.1.10

(1) This rule applies for the purposes of TC 2.1.1 R, TC 2.1.5 R, TC 2.1.6 R, TC 2.1.7 R, TC 2.1.9 R, TC 2.2A.1 R, TC 2.2A.3 R and TC 2.2A.6 R.
(2) To ensure that a qualification is appropriate, a firm should select an appropriate qualification from the list of qualifications set out in TC Appendix 4E.
(3) Contravention of (2) may be relied on as tending to establish contravention of the rules referred to in (1).

01/01/2011

TC 2.1.10A

TC Appendix 5G sets out:

(1) the criteria which the FSA may take into account when assessing a qualification provider; and
(2) the information the FSA will expect the qualification provider to provide if it asks the FSA to add a qualification to the list of appropriate qualifications in TC Appendix 4E.

01/01/2011

TC 2.1.10B

(1) TC Appendix 6G sets out guidance in relation to accredited bodies.
(2) TC Appendix 7G sets out guidance on gap-filling in relation to appropriate qualifications and the function of accredited bodies in that regard.

01/02/2011

Training needs

TC 2.1.11

Firms should ensure that their employees' training needs are assessed at the outset and at regular intervals (including if their role changes). Appropriate training and support should be provided to ensure that any relevant training needs are satisfied. Firms should also review at regular intervals the quality and effectiveness of such training.

01/11/2007

Maintaining competence

TC 2.1.12

A firm must review on a regular and frequent basis employees' competence and take appropriate action to ensure that they remain competent for their role.

01/11/2007

TC 2.1.13

A firm should ensure that maintaining competence for an employee takes into account such matters as:

(1) technical knowledge and its application;
(2) skills and expertise; and
(3) changes in the market and to products, legislation and regulation.

01/01/2011

TC 2.1.14

A firm may choose to establish, implement and maintain a training and competence scheme.

01/01/2011

Continuing professional development

TC 2.1.15

Subject to TC 2.1.17 R, a firm must ensure that a retail investment adviser who has been assessed as competent for the purposes of TC 2.1.1 R remains competent by completing a minimum of 35 hours of appropriate continuing professional development in each 12 month period.

31/12/2012

TC 2.1.16

In order to meet the requirement in TC 2.1.15 R, a retail investment adviser should complete no less than 21 hours of structured continuing professional development activities.

31/12/2012

TC 2.1.17

A firm is permitted to suspend the requirements of TC 2.1.15 R in respect of a retail investment adviser for the period of time during which the retail investment adviser is continuously absent from work, if that absence is due to:

(1) maternity, paternity or adoption leave;
(2) long-term illness or disability;
(3) caring responsibilities for a family member who has a long-term illness or disability; or
(4) any other absence allowed in order for the firm to meet its statutory duties in relation to equality and diversity.

31/12/2012

TC 2.1.18

In TC 2.1.17R (3), a family member includes a partner, parent, grandparent, sibling or child.

31/12/2012

TC 2.1.19

In deciding whether to suspend the requirements of TC 2.1.15 R, a firm should take into account:

(1) the retail investment adviser's individual circumstances;
(2) the length of time the retail investment adviser is likely to be absent from carrying on the activity; and
(3) its statutory duties in relation to equality and diversity.

31/12/2012

TC 2.1.20

Examples of structured continuing professional development activities include participating in courses, seminars, lectures, conferences, workshops, web-based seminars or e-learning which require a contribution of thirty minutes or more.

31/12/2012

TC 2.1.21

Examples of unstructured continuing professional development activities include:

(1) conducting research relevant to the individual's role;
(2) reading industry or other relevant material;
(3) participating in professional development coaching or mentoring sessions.

31/12/2012

TC 2.1.22

All continuing professional development should:

(1) be relevant to the retail investment adviser's current role and any anticipated changes to that role;

(2) maintain the retail investment adviser's knowledge by reference to current qualification standards relevant to the retail investment adviser's role;

(3) contribute to the retail investment adviser's professional skill and knowledge;

(4) address any identified gaps in the retail investment adviser's technical knowledge;

(5) have written learning objectives based on learning needs and a documented learning outcome;

(6) be measurable and capable of being independently verified by an accredited body.

31/12/2012

TC 2.1.23

Continuing professional development completed by a retail investment adviser in relation to activities other than acting as a retail investment adviser should not be taken into account for the purposes of TC 2.1.15 R unless it is also relevant to the activity of acting as a retail investment adviser.

31/12/2012

TC 2.1.24

A firm must, for the purposes of TC 3.1.1 R (Record keeping), make and retain records of:

(1) the continuing professional development completed by each retail investment adviser; and
(2) the dates of and reasons for any suspension of the continuing professional development requirements under TC 2.1.17 R.

31/12/2012

TC 2.1.25

A firm must not prevent a retail investment adviser from obtaining a copy of the records relating to that retail investment adviser which are maintained by the firm for the purposes of TC 2.1.24 R.

31/12/2012

Annual declarations

TC 2.1.26

A firm must ensure that a retail investment adviser confirms annually in writing that the retail investment adviser has, in the preceding 12 months:

(1) complied with APER; and
(2) if applicable, completed the continuing professional development required under TC 2.1.15 R.

31/12/2012

Independent verification

TC 2.1.27

A firm must obtain from an accredited body independent verification of the firm's compliance with:

(1) in respect of its retail investment advisers only, the requirement in TC 2.1.1 R to attain each module of an appropriate qualification;
(2) TC 2.1.15 R; and
(3) TC 2.1.26 R.

31/12/2012

TC 2.1.28

The independent verification in TC 2.1.27 R must be obtained by a firm:

(1) in respect of a competent retail investment adviser who began to carry on the activity of a retail investment adviser on or before 31 December 2012, within 60 days of that date and of the anniversary of that date thereafter;
(2) in respect of a retail investment adviser who began to carry on the activity of a retail investment adviser on or after 1 January 2013, within 60 days of the date on which the retail investment adviser was assessed as competent as a retail investment adviser and of the anniversary of that date thereafter.

31/12/2012

TC 2.1.29

Independent verification for the purposes of TC 2.1.27 R should take the form of a statement of professional standing issued by an accredited body.

31/12/2012

TC 2.1.30

The Glossary definition of accredited body contains a list of bodies recognised by the FSA for the purpose of providing the independent verification required under TC 2.1.27 R. Information on accredited bodies, including guidance on the process for including a body in the list is set out in TC Appendix 6G and the obligation to pay the application fee is set out in FEES 3.2.

31/12/2012

Notification requirements

TC 2.1.31

A firm must notify the FSA as soon as reasonably practicable after it becomes aware, or has information which reasonably suggests, that any of the following events has occurred or may have occurred in relation to any of its retail investment advisers, and the event is significant:

(1) a retail investment adviser, who has been assessed as competent for the purposes of TC 2.1.1 R, is no longer considered competent for those purposes;
(2) a retail investment adviser has failed to attain an appropriate qualification within the time limit prescribed by TC 2.2A.1R (1);
(3) a retail investment adviser has failed to comply with a Statement of Principle in carrying out his controlled function; and
(4) a retail investment adviser has performed an activity in TC Appendix 1 before having demonstrated the necessary competence for the purposes of TC 2.1.1 R and without appropriate supervision.

01/07/2011

TC 2.1.32

When considering whether an event is significant a firm should include the following in its considerations:

(1) the potential risk of consumer detriment as a result of the event;
(2) whether the event or a pattern of events indicate recurrent issues in relation to one or more retail investment advisers; and
(3) its obligations under Principle 11.

01/07/2011

TC 2.1.33

The Retail Investment Adviser Competence Notification Form approved by the FSA for notifications under TC 2.1.31 R may be found at the FSA's website www.fsa.gov.uk/Pages/Doing/Regulated/Notify/index.shtml.

01/07/2011

TC 2.2A

Time limits

01/01/2011

Calculation of time limits for attaining an appropriate qualification

TC 2.2A.1

(1) For the purposes of TC 2.1.1 R, if an employee carries on an activity in TC Appendix 1 (other than an overseeing activity), a firm must ensure that the employee attains an appropriate qualification within 30 months of starting to carry on that activity.
(2) For the purposes of (1), a firm must record the date on which the employee starts to carry on that activity.

01/01/2011

TC 2.2A.2

For the purposes of calculating the 30 months referred to in TC 2.2A.1 R, a firm must:

(1) aggregate periods of time spent carrying on the activity during different periods of employment; and
(2) disregard any period of 60 business days or more during which the employee is not carrying on the activity due to being continuously absent from work.

01/01/2011

TC 2.2A.3

A firm must ensure that any employee who does not attain an appropriate qualification within the specified time:

(1) ceases to engage in the activity to which that qualification would relate; and
(2) does not resume that activity without first attaining an appropriate qualification.

01/01/2011

TC 2.2A.4

Firms may wish their employees to attain an appropriate qualification within an earlier time limit or to place limits on the number of times that qualification can be taken.

01/01/2011

TC 2.2A.5

Firms may wish employees who carry on an overseeing activity specified in TC Appendix 1 to attain an appropriate qualification within 30 months of starting the activity.

01/01/2011

Record-keeping

TC 2.2A.6

A firm should, for the purposes of TC 3.1.1 R (Record keeping), make and retain records of the time limits within which the appropriate qualification has been attained.

01/01/2011

TC 2.2B

Reporting requirements

31/12/2012

Application

TC 2.2B.1

This section applies to a firm with employees that are retail investment advisers.

31/12/2012

Purpose

TC 2.2B.2

(1) The purpose of this section is to set out the requirement for firms which employ retail investment advisers to notify each individual retail investment adviser's professional standards data to the FSA.
(2) The purpose of collecting this data is to assist the FSA in the ongoing supervision of firms which employ retail investment advisers and to enable the FSA to gain an understanding of the professional development of individual retail investment advisers in the interests of protecting customers.

31/12/2012

Reporting requirement

TC 2.2B.3

(1) A firm must submit a report (the 'data report') to the FSA containing the information required by TC 2.2B.4 R quarterly, within 20 business days of the end of the quarter, unless (3) applies.
(2) The reporting periods are the four calendar quarters of each year beginning on 1 January.
(3) A firm need not submit a data report if no changes have occurred in relation to the information submitted by the firm in its previous report.
(4) A firm may submit a data report more frequently than quarterly if it wishes.

31/12/2012

Content of the report

TC 2.2B.4

The report must contain professional standards data as follows:

(1) the firm's name and FSA Firm Reference Number;
(2) the names and FSA Individual Reference Numbers of the firm's employees who are retail investment advisers, including trainees;
(3) whether a retail investment adviser has attained an appropriate qualification;
(4) if a retail investment adviser has not attained an appropriate qualification, the date on which the employee began to carry on the activity of a retail investment adviser; and
(5) the name of the accredited body used for the purposes of TC 2.1.27 R.

31/12/2012

TC 2.2B.5

The data report must comply with the provisions of TC Appendix 8R.

31/12/2012

TC 2.2B.6

A firm must submit the data report to the FSA electronically in a standard format prescribed by the FSA .

31/12/2012

TC 2.2B.7

A data report will not have been submitted to the FSA in accordance with TC 2.2B.6 R unless all mandatory data reporting fields (as set out in TC Appendix 8R) have been completed correctly and the report has been accepted by the relevant FSA reporting system.

31/12/2012

TC 3

Record Keeping

TC 3.1

Record-keeping requirements

01/01/2011

TC 3.1.1

A firm must make appropriate records to demonstrate compliance with the rules in this sourcebook and keep them for the following periods after an employee stops carrying on the activity:

(1) at least 5 years for MiFID business;
(2) 3 years for non-MiFID business; and
(3) indefinitely for a pension transfer specialist.

01/11/2007

TC App 1

TC Appendix 1

TC App 1.1

Activities and Products/Sectors to which TC applies subject to TC Appendices 2 and 3

01/01/2011

TC App 1.1.1

Activity

Products/Sectors

Is there an appropriate
qualification requirement?

Designated investment business carried on for a retail client

Providing basic advice

Stakeholder products excluding a deposit-based stakeholder product

Advising

Securities which are not stakeholder pension schemes, personal pension schemes or broker funds

Yes

Derivatives

Yes

Retail investment products which are not broker funds

Yes

Friendly Society life policies where the employee is not reasonably expected to receive a remuneration of greater than £1000 a year in respect of such sales

Friendly Society tax-exempt policies (other than Holloway sickness policies where the Holloway policy special application conditions are met)

Yes

Long-term care insurance contracts

Yes

Investments in the course of corporate finance business

Yes

Advising on syndicate participation at Lloyd's

Yes

Undertaking the activity in column 2

10.

Broker fund adviser

Yes

11.

Pension transfer specialist

Yes

Advising and dealing

12.

Securities which are not stakeholder pension schemes, personal pension schemes or broker funds

Yes

13.

Derivatives

Yes

Dealing

13A.

Securities which are not stakeholder pension schemes, personal pension schemes or broker funds

13B.

Derivatives

MiFID business bidding

13C.

Emissions auction products that are financial instruments

Managing

14.

Investments

Yes

Overseeing on a day-to-day basis

15.

Operating a collective investment scheme or undertaking the activities of a trustee or depositary of a collective investment scheme

Yes

16.

Safeguarding and administering investments or holding client money

Yes

17.

Administrative functions in relation to managing investments

Yes

18.

Administrative functions in relation to effecting or carrying out contracts of insurance which are life policies

Yes

19.

Administrative functions in relation to the operation of stakeholder pension schemes

Yes

Regulated mortgage activity and reversion activity carried on for a customer

Advising

20.

Regulated mortgage contracts for a non-business purpose

Yes

21.

Equity release transactions

Yes

Designing scripted questions for non-advised sales

22.

Equity release transactions

Yes

Overseeing non-advised sales on a day-to-day basis

23.

Equity release transactions

Yes

Non-investment insurance business carried on for a consumer

Advising

24.

Non-investment insurance contracts

Regulated sale and rent back activity carried on for a customer

Advising

25.

Regulated sale and rent back agreements

Overseeing non-advised sales on a day-to-day basis

26.

Regulated sale and rent back agreements

Notes:

In the Appendix the heading and types of business specified in the headings are to be read in conjunction with the paragraphs appearing beneath them.

Thus, for example, paragraph 24 consistent with the heading above it, refers only to advice on non-investment insurance contracts given to a consumer.

31/12/2012

TC App 2

Appendix 2

TC App 2.1

TCs Territorial Scope subject to the limitation in TC Appendix 3

01/01/2011

TC App 2.1.1

UK domestic firm

Incoming EEA firm

Overseas firm (other than an incoming EEA firm)

MiFID business and equivalent third country business

TC applies in respect of employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom
and
TC also applies insofar as an activity is carried on from an establishment maintained by the firm (or its appointed representative or, where applicable, its tied agent) in, and within the territory of, another EEA State

TC does not apply

TC applies in respect of employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom

Insurance mediation activities

TC applies in respect of employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom
and
TC also applies in respect of employees who engage in or oversee activities from a branch established in another EEA state

TC does not apply

Regulated mortgage activity and reversion activity

TC applies if the customer is resident in the United Kingdom at the time the regulated mortgage activity or reversion activity is carried on
and
TC also applies if the customer is resident in another EEA State (at the time that the activity is carried on) but only if the activity is carried on from an establishment maintained by the firm or its appointed representative in the United Kingdom

Same as for UK domestic firm

Any other activity in Appendix 1

TC applies in respect of employees who carry on these activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom
and
TC also applies in respect of employees who carry on activities with or for a client in the United Kingdom

TC applies in respect of its employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom

01/11/2007

TC App 3

Appendix 3

TC App 3.1

Circumstances in which TC does not apply

01/01/2011

TC App 3.1.1

Type of firm/activity

Application

Incoming EEA firm

This sourcebook does not apply where responsibility for any matter it covers is reserved by an EU instrument to the firm's Home State regulator

Incoming Treaty firm

This sourcebook does not apply where responsibility for any matter it covers is reserved by an EU instrument to the firm's Home State regulator

UCITS qualifier

This sourcebook only applies where it is relevant to the manner in which a firm communicates or approves a financial promotion

Authorised professional firm

TC does not apply with respect to its non-mainstream regulated activities (see PROF 5.2)

Incoming ECA provider

TC does not apply to an incoming ECA provider acting as such.

01/12/2009

TC App 4

Appropriate Qualification tables

TC App 4.1

Appropriate Qualification tables

01/01/2011

TC App 4.1.1

Part 1: Activities
Note: The activity numbers in this table relate to the Regulated Activities in TC App 1.1.1 R. These tables do not cover activities 1, 5, 13A, 13B, 13C, 24, 25 or 26 as these activities do not have a qualification requirement.

Activity Number

Activity

Key - extent to which qualification meets qualification requirement

Advising on securities which are not stakeholder pension schemes, personal pension schemes or broker funds

(a)

Meets full qualification requirement on and after, 31 December 2012

Advising on derivatives

4 and 6

(4) Advising on retail investment products which are not broker funds and (6) advising on friendly society tax-exempt policies (other than Holloway sickness policies where the Holloway policy special application conditions are met)

(b)

Meets full qualification requirement until 31 December 2012. On and after 31 December 2012 this must be combined with qualification gap-fill. This gap-fill constitutes additional structured continuing professional development, which need not be by examination, completed and verified by an accredited body

Advising on and dealing in securities which are not stakeholder pension schemes, personal pension schemes or broker funds

Advising on and dealing in derivatives

Activity Number

Activity

Key - extent to which qualification meets qualification requirement

Advising on long-term care insurance contracts

1 or
(2 + 3) or
(4 + 5 + 6)

Meets full qualification requirement

Advising on investments in the course of corporate finance business

Advising on syndicate participation at Lloyd's

Undertaking the activity of a pension transfer specialist

14 and 10

Managing investments and/or undertaking the activity of a broker fund adviser

Overseeing on a day to day basis operating a collective investment scheme or undertaking activities of a trustee or depositary of a collective investment scheme

Overseeing on a day to day basis safeguarding and administering investments or holding client money

Overseeing on a day to day basis administrative functions in relation to managing investments:
(i) arranging settlement;
(ii) monitoring and processing corporate actions;
(iii) client account administration, liaison and reporting including valuation and performance measurement;
(iv) ISA or CTF administration;
(v) Investment trust savings scheme administration.

Overseeing on a day to day basis administrative functions in relation to effecting or carrying out contracts of insurance which are life policies:
(i) new business administration;
(ii) policy alterations including surrenders and policy loans;
(iii) preparing projections;
(iv) processing claims, including pension payments;
(v) fund switching

1 or
(2 + 3) or
(4 + 5 + 6)

Meets full qualification requirement

Overseeing on a day to day basis administrative functions in relation to the operation of stakeholder pension schemes:
(i) new business administration;
(ii) receipt of or alteration to contributions;
(iii) preparing projections and annual statements;
(iv) administration of transfers;
(v) handling claims, including pension payments;
(vi) fund allocation and switching.

Advising on a regulated mortgage contract for a non-business purpose

Advising on equity release transactions

Designing scripted questions for non-advised sales of equity release transactions

Overseeing non-advised sales on a day-to-day basis of equity release transactions

Part 2: Appropriate Qualifications Tables

Qualification provider

Qualification

Activity Number(s)

Key

ACI The Financial Markets Association

ACI Diploma (provided it is accompanied by appropriate qualifications in Regulation and Ethics, Investment Principles and Risk and Personal Taxation)

2, 3, 12, 13

ACI Dealing Certificate when combined with Chartered Institute of Securities and Investment (CISI) Introduction to Securities and Investments and one of the Regulatory units of the Investment Operations Certificate (IOC)

15, 17

ACI Operations Certificate when combined with Chartered Institute of Securities and Investment (CISI) Introduction to Securities and Investments and one of the Regulatory units of the Investment Operations Certificate (IOC)

Association of Accounting Technicians

Member

15, 16, 17, 18, 19

Association of Certified International Investment Analysts (ACIIA)

CIIA qualification (provided it is accompanied by appropriate qualifications in Regulation and Ethics, Investment Principles and Risk and Personal Taxation)

2, 3, 12, 13

Certified International Investment Analyst (CIIA)

14 and 10

Association of Chartered Certified Accountants

Member or Affiliate

Fellow or Associate

15, 16, 17, 18, 19

Association of Corporate Treasurers

Fellow or Associate

15, 16, 17, 18, 19

Association of International Wealth Management (AIWM)

Certified International Wealth Manager Diploma (CIWM)

2, 3, 12, 13

14 and 10

Blackburn College - University Centre

Foundation Degree Award in Financial Services

4 and 6

Bournemouth University

BA in Financial Services (1995 to 2001)

4 and 6

MA in Financial Services (1995 to 2001)

Post Graduate in Financial Services (1995 to 2001)

Calibrand / Scottish Qualifications Authority

Diploma in Professional Financial Advice

4 and 6

Diploma in Professional Financial Advice (NMBA - Alternative Assessment method)

CASS Business School

MSC in Banking and International Finance (provided it is accompanied by appropriate qualifications in Regulation and Ethics, Investment Principles and Risk and Personal Taxation)

2, 3, 12, 13

CFA Institute and the CFA Society of the UK

CFA Program (Level 1) plus Investment Management Certificate (Level 4 certificate) (post-2010 exam standards)

2, 3, 12, 13

CFA Program plus Unit 1 of the Investment Management Certificate (Level 4 certificate) (post-2010 exam standards)

Associate

2, 3, 12, 13

CFA Program (Level 1) plus Investment Management Certificate (pre-2010 exam standards)

CFA Program plus Unit 1 of the Investment Management Certificate (pre-2010 exam standards)

Fellow by examination

CFA Program (Level 1)

14 and 10

Fellow or Associate by examination

14 and 10

15, 16, 17, 18, 19

Investment Management Asset Allocation Qualification

14 and 10

Investment Regulation and Practice Paper of the Associate Examination

15, 16, 17

CFA Society of UK (Formerly the UK Society of Investment Professionals/ Institute of Investment Management and Research (IIMR))

Investment Management Certificate (Level 4 certificate) (post-2010 exam standards) plus other qualifications that meet specialist standards for advising on securities

2, 12

Investment Management Certificate (Level 4 certificate) (post-2010 exam standards) plus other qualifications that meet specialist standards for advising on packaged products

4 and 6

Investment Management Certificate (Level 4 certificate) (post-2010 exam standards) plus other qualifications that meet specialist standards for advising on derivatives

3, 13

Investment Management Certificate (both pre and post 2010 examination standards)

15, 16, 17, 18, 19

15, 16, 17

14 and 10

Investment Practice Version of Investment Management Certificate (both pre and post 2010 Appropriate Exam standards)

14 and 10

Investment Practice version of the Investment Management Certificate

UK Regulation and Markets version of the Investment Management Certificate

15, 16, 17, 19

Unit 1 - UK Regulation and Markets

14 and 10

Chartered Alternative Investment Analysis Association (CAIA)

CAIA Level 1 (provided it is accompanied by appropriate qualifications in Regulation and Ethics and Personal Taxation)

2, 12

Chartered Institute of Bankers in Ireland

Fellow or Associate

15, 16, 17, 18, 19

Chartered Institute of Bankers in Scotland

Diploma in Investment Planning (Existing Adviser) Post 2010 examination standards

4 and 6

Diploma in Investment Planning (New Adviser) Post 2010 examination standards

Diploma in Investment Planning (Retail Banking) (New Adviser) Post 2010 examination standards

Diploma in Investment Planning (Retail Banking) (Existing Adviser) Post 2010 examination standards

Diploma in investment planning (work based assessment)

Associate (March 1992 to July 1994 syllabus (including top-up test))

4 and 6

Associate (post August 1994 syllabus)

Certificate in Investment Planning (Pre 17/09/2004)

Chartered Banker (where candidates hold UK Financial Services and Investment modules)

Diploma in Investment Planning (current)

Associateship - (must include a pass in the Investment Paper)

2, 3, 12, 13

Certificate in Investment Planning - Paper 1

15, 16, 18, 19

15, 16, 17, 18, 19

Certificate in Investment Planning

Member or Associate

15, 16, 17, 18, 19

Mortgage Advice and Practice Certificate

Certificate in Mortgage Advice and Practice (MAPC) (Pre 16/09/2004)

20, 21, 22

MAPC bridge paper plus entry requirements (Pre 31/10/2004)

Certificate in Investment Planning - Paper 1 (Pre 16/09/2004)

20, 21, 22

MAPC - Paper 1 (Pre 16/09/2004)

Mortgage Advice and Practice Certificate - Paper 1 (Post 17/09/2004)

20, 21

Equity Release Mortgage Advice and Practice Certificate (ERMAPC)

21, 22

Lifetime Mortgage Advice and Practice Certificate

MAPC Bridge paper plus entry requirements (Pre 16/09/2004)

Certificate in Mortgage Advice and Practice (MAPC) (Pre 16/09/2004) - Paper 1

21, 22

Equity Release Mortgage Advice and Practice Certificate (ERMAPC)

Chartered Institute of Management Accountants

Fellow or Associate

15, 16, 17, 18, 19

Chartered Institute of Public Finance and Accountancy

Fellow or Associate

15, 16, 17, 18, 19

Chartered Institute for Securities and Investment (CISI) - (Formerly the Securities and Investment Institute (SII); formerly The Securities Association)

Investment Advice Diploma (where candidate holds 3 modules including the private client advice module)

4 and 6

Investment Advice Diploma (where candidate holds 3 modules including the derivatives module)

3, 13

Investment Advice Diploma (where candidate holds 3 modules including the securities module)

2, 12

Masters in Wealth Management (Post 2010 examination standards)

2, 3, 4 and 6, 12, 13

Certificate in Private Client Investment Advice and Management

2, 3, 4 and 6, 12, 13

14 and 10

Certificate in Private Client Investment Advice and Management (attained through a CISI competency interview and presentation only)

2, 3, 4 and 6, 12, 13

14 and 10

Diploma (where candidate holds 3 modules as recommended by the firm)

2, 3, 4 and 6, 12, 13

Investment Advice Certificate

2, 3, 4 and 6, 12, 13

Masters in Wealth Management (Pre 2010 examination standards)

2, 3, 4 and 6, 12, 13

Member of the Securities Institute (MSI Dip) (where candidate holds 3 modules as recommended by the firm)

2, 3, 4 and 6, 12, 13

Certificate in Corporate Finance

15, 16, 17, 18, 19

Certificate in Derivatives - Paper 2

15, 16, 17, 18, 19

Certificate in Investment and Financial Advice - Paper 1

21, 22

Certificate in Investment Management

15, 16, 17, 19

15, 16, 17

14 and 10

Certificate in Investment Management - Paper 2

14 and 10

Certificate in Securities

Certificate in Securities - Paper 2

15, 16, 17, 18, 19

Certificate in Securities and Derivatives - Paper 2

Certificate in Securities and Financial Derivatives

Certificate in Securities and Financial Derivatives - Paper 2

15, 16, 17, 18

Client Services Qualification

15, 16, 17, 18, 19

Diploma

15, 16, 17, 18, 19

Diploma - Corporate Finance Paper

Diploma - Global Operations Management Module

15, 16, 17, 18, 19

15, 16, 17

Diploma - International Operations Management Module

15, 16

Diploma - International Operations Module

16, 18, 19

Diploma - Operations Management Module

15, 16, 17, 18, 19

15, 17

15, 16, 17

Diploma - Regulation and Compliance Module

14 and 10

15, 16, 17, 18, 19

Diploma (must include a pass in Regulation and Compliance Paper)

Diploma (where candidate holds 3 modules as recommended by the firm)

14 and 10

Investment Administration Qualification - Asset Servicing Module

15, 16, 17

Investment Administration Qualification - Basics of CREST Module

15, 16, 17

Investment Administration Qualification - Bond Settlement Module

15, 16, 17

Investment Administration Qualification - Collective Investment Schemes Administration Module

15, 16, 17

Investment Administration Qualification - CREST Settlement Module

15, 16, 17

Investment Administration Qualification - Derivatives Operations Module

15, 16, 17

Investment Administration Qualification - Exchange - Traded Derivative Administration Module

15, 16, 17

Investment Administration Qualification - FSA Regulatory Environment Module

15, 16, 17

Investment Administration Qualification - Global Custody Module

15, 16, 17

Investment Administration Qualification - Global Securities Operations Module

16, 17

Investment Administration Qualification - Global Settlement Module

15, 16, 17

Investment Administration Qualification - IMRO Regulatory Environment Module

14 and 10

15, 16, 17, 18, 19

Investment Administration Qualification - Introduction to Securities and Investment Module

15, 16, 17, 18, 19

Investment Administration Qualification - ISA Administration Module

15, 16, 17

Investment Administration Qualification - ISA and CTF Administration Module

Investment Administration Qualification - ISA and PEP Administration Module

15, 16, 17

Investment Administration Qualification - Life Policy Administration Module

Investment Administration Qualification - OEIC Administration Module

15, 16, 17

Investment Administration Qualification - Operational Risk Module

15, 16, 17

Investment Administration Qualification - OTC Derivatives Administration Module

15, 16

Investment Administration Qualification - Pensions Administration Module

Investment Administration Qualification - PEP Administration Module

15, 16, 17

Investment Administration Qualification - Portfolio Performance Measurement Module

15, 16

Investment Administration Qualification - Private Client Administration Module

15, 16, 17

Investment Administration Qualification - SFA Regulatory Environment Module

14 and 10

15, 16, 17, 18

Investment Administration Qualification - Unit 2 FSA Regulatory Environment - (Formerly the Investment Administration Qualification - Regulatory Environment Module)

14 and 10

18, 19

Investment Administration Qualification - Unit Trust Administration Module

15, 16, 17

Investment Advice Certificate

14 and 10

Investment Advice Certificate - Paper 1

15, 16, 17, 18, 19

Investment Advice Certificate - Paper 1 (No new registrations)

20, 21, 22

Investment Advice Certificate - Paper 2

18, 19

Investment Advice Diploma (where candidates hold technical modules as recommended by the firm)

14 and 10

Investment Operations Certificate - Asset Servicing Module

15, 16, 17

Investment Operations Certificate - Collective Investment Schemes Administration Module

15, 16, 17

Investment Operations Certificate - CREST Settlement Module

15, 16, 17

Investment Operations Certificate - Exchange - Traded Derivative Administration Module

15, 16, 17

Investment Operations Certificate - FSA Financial Regulation Module

14 and 10

15, 16, 17, 18, 19

Investment Operations Certificate - Global Securities Module

Investment Operations Certificate - Global Securities Operation Module

Investment Operations Certificate - Introduction to Securities and Investment Module

15, 16, 17, 18, 19

Investment Operations Certificate - ISA Administration Module

15, 16, 17

Investment Operations Certificate - Operational Risk Module

15, 16, 17

Investment Operations Certificate - OTC Derivatives Administration Module

15, 16

Investment Operations Certificate - Private Client Administration Module

15, 16, 17

Level 3 Certificate in Investments (Derivatives) - Unit 3

15, 16, 17, 18, 19

Level 3 Certificate in Investments (Investment Management)

14 and 10

15, 16, 17, 18, 19

15, 16, 17

Level 3 Certificate in Investments (Investment Management) - Unit 5

14 and 10

Level 3 Certificate in Investments (Securities and Financial Derivatives)

15, 16, 17, 18, 19

Level 3 Certificate in Investments (Securities)

Level 3 Certificate in Investments (Securities) - Unit 2

15, 16, 17, 18, 19

Level 6 Diploma in Wealth Management

14 and 10

Masters in Wealth Management

14 and 10

Member of the Securities Institute by examination

15, 17, 19

Principles of Financial Regulation

18, 19

SFA Corporate Finance Representative Examination

15, 16, 17, 18, 19

SFA Futures and Options Representative Examination

15, 16, 17, 18, 19

15, 16, 17

SFA Registered Persons Examination - Section 1 (Regulation)

14 and 10

15, 16, 17, 18, 19

SFA Securities and Financial Derivatives Representative Examination

15, 16, 17, 18, 19

15, 16, 17

SFA Securities Representative Examination

15, 16, 17, 18, 19

16, 17

TSA Registered Representative Examinations

15, 16, 17, 18, 19

15, 16

Unit 1 - Financial Regulation

14 and 10

Unit 1 Financial Regulation (Formerly the Securities Institute Regulatory Paper)

15, 16, 17, 18, 19

Unit 6 - Principles of Financial Regulation

14 and 10

15, 16, 17

Chartered Insurance Institute

Certificate in Securities Advice and Dealing

2, 12

Diploma in Regulated Financial Planning

4 and 6

Diploma in Regulated Financial Planning (attained through a CII alternative assessment day)

Fellow or Associate (life and pensions route only)

2, 3, 12, 13

Advanced Financial Planning Certificate

2, 3, 4 and 6, 12, 13

Diploma in Financial Planning

4 and 6

Fellow (FCII) (where candidates hold appropriate life and pensions modules)

Fellow (FLIA Dip)

Advanced Diploma in Financial Planning

Associate (ACII) (where candidate holds appropriate life and pension modules)

Associate (ALIA Dip)

Certificate in Financial Planning plus the Award in Long Term Care Insurance

G80 paper of Advanced Financial Planning Certificate (October 2004) plus appropriate exam requirements for TC 2.1.4R(1)(f)

G70 Paper of the Advanced Financial Planning Certificate

Award in London Market Insurance

Fellow or Associate including three pensions-related subjects as confirmed by the examining body

G60 paper of Advanced Financial Planning Certificate

Unit AF3 of the Advanced Diploma in Financial Planning

Certificate of Insurance Practice

Certificate of Insurance Practice (life or pensions route)

FA1 - Life office administration

Fellow or Associate (life and pensions route only)

Life assurance paper (735) from the Associateship

Certificate of Insurance Practice (Pensions route)

Fellow or Associate (Pensions route)

Certificate in Mortgage Advice

Certificate in Equity Release (Formerly known as Certificate in Financial Planning and Lifetime Mortgages)

Certificate in Equity Release

Advanced Financial Planning Certificate (must include a pass in G70 paper)

14 and 10

Certificate in Discretionary Investment Management

Fellow or Associate

15, 16, 17, 18, 19

Financial Planning Certificate - Paper 1

15, 16, 17, 18, 19

CF1 - UK financial services, regulation and ethics

18, 19

FA2 - Pensions administration paper

18, 19

Financial Planning Certificate - Paper 2

Pensions law, taxation and administration paper (740) from the Associateship

Certificate in Mortgage Advice - Paper 1

20, 21

Mortgage Advice Qualification (MAQ) plus entry requirements

20, 21, 22

Financial Planning Certificate - Paper 1 (No new registrations after 17/12/2004)

20, 21, 22

EFFAS Societies with accredited examinations

Certified European Financial Analyst

14 and 10

Faculty or Institute of Actuaries

Fellow or Associate or where the individual has passed all of the following modules CT1, CT2, CT4, CT5, CT6, CT7 and CT8

2, 3, 4 and 6, 12, 13

14 and 10

Associate - achieved by examination passed before 1 December 2001 (must include a pass in Subject 301 - Investment and Asset Management (syllabus in force from 1998)

14 and 10

Associate - achieved by examination passed after 1 December 2001 (must include a pass in subject 301 - Investment and Asset Management (syllabus in force from 1998)

14 and 10

Fellow or Associate

Fellow - achieved by examination (must include a pass in subjects 301 and 401 Investment and Asset Management (syllabus in force from 1998))

14 and 10

Fellow or Associate

16, 17, 18, 19

Fellow or Associate by examination (must include Investment Paper E (Syllabus in force until 1998))

14 and 10

Fellow or where the individual has passed all of the following modules CA1 and SA2

Financial Industry Regulatory Authority (FINRA) - Formerly the National Association of Securities Dealers (NASD)

Series 7 - General Securities Representatives Examination (provided it is accompanied by appropriate qualifications in Regulation and Ethics and Personal Taxation)

2, 3, 12, 13

Financial Skills Partnership (formerly the Financial Services Skills Council (FSSC))

FSSC Advanced Apprenticeship in Advising on Financial Products (Long Term Care Insurance Pathway)

FSSC Advanced Apprenticeship in Retail Financial Services (Investment Administration Pathway including either Asset Servicing / CREST Settlement / Global Securities or ISA and CTF Administration)

FSSC Advanced Apprenticeship in Retail Financial Services (Investment Administration Pathway including FSA Regulatory Environment or Principles of Financial Regulation)

FSSC Advanced Apprenticeship in Retail Financial Services (investment Administration Pathway including the Introduction to Securities and Investment module)

FSSC AdvancedApprenticeship in Retail Financial Services (Long Term Insurance Pathway including CF1)

FSSC Advanced Apprenticeship in Retail Financial Services (Long Term Insurance Pathway including CF1)

FSSC Advanced Apprenticeship in Retail Financial Services (Long Term Insurance Pathway including CF1 and either FA1 or FA2)

FSSC Advanced Apprenticeship in Retail Financial Services (Long Term Insurance Pathway including CF1 and FA2)

FSSC Advanced Apprenticeship in Advising on Financial Products (Mortgage Advice Pathway)

ICMA Centre/ University of Reading (Formerly ISMA Centre/ University of Reading)

Diploma in Capital Markets, Regulation and Compliance

Operations Certificate Programme (OCP)

16, 17

ifs School of Finance (formerly the Chartered Institute of Bankers)

Diploma for Financial Advisers (post 2010 examination standards)

4 and 6

Professional Certificate in Banking (PCertB) (where candidate has passed the Practice of Financial Advice module)

Associateship - (must include a pass in the Investment / Investment Management Paper)

2, 3, 4 and 6, 12, 13

Diploma for Financial Advisers (pre 2010 examination standards)

4 and 6

Professional Investment Certificate

Certificate for Financial Advisers and Certificate in Long-term Care Insurance

Pensions paper of Professional Investment Certificate

Certificate for Financial Advisers - Paper 1

Fellow or Associate

15, 16, 17, 18, 19

Certificate for Financial Advisers - Paper 1 (Pre 31/10/2004)

15, 16, 17, 18, 19

20, 21, 22

Certificate for Financial Advisers - Paper 1 (Post 01/11/2004)

18, 19

Certificate for Financial Advisers - Paper 2 (Pre 31/10/2004)

18, 19

CeMAP Bridge paper plus entry requirements

Certificate in Mortgage Advice and Practice (Post 01/11/2004)

Diploma for Mortgage Advice and Practice DipMAP (plus entry requirements)

CeMAP bridge paper plus entry requirements (Pre 31/10/2004)

21, 22

Certificate in Mortgage Advice and Practice (CeMAP) (Pre 31/10/2004) - Paper 1

20, 21

Certificate in Mortgage Advice and Practice (Post 01/11/2004) - Paper 1

20, 21

Certificate in Mortgage Advice and Practice (CeMAP) (Pre 31/10/2004)

20, 21, 22

Certificate in Regulated Equity Release (Formerly known as Certificate in Lifetime Mortgages)

21, 22

Institute of Chartered Accountants in England and Wales

Fellow or Associate

15, 16, 17, 18, 19

Initial Test of Competence

18, 19

Institute of Chartered Accountants in Ireland

Fellow or Associate

15, 16, 17, 18, 19

Initial Test of Competence

Institute of Chartered Accountants in Scotland

Member

15, 16, 17, 18, 19

Initial Test of Competence

Institute of Chartered Secretaries and Administrators

Certificate in Collective Investment Scheme Administration

15, 16, 17, 18

15, 16

Certificate in Company Secretarial Practice and Share Registration Practice (including the Regulatory module within the examination)

15, 16. 17

Fellow or Associate

15, 16, 17, 18, 19

Institute of Financial Planning

Certified Financial Planner

4 and 6

Fellowship

Insurance Sector Education and Training Authority

National Diploma: Financial Services Long-Term Risk Assessment

Investment Management Association

Investment Administration Management Award

15, 16, 17

Investment Property Forum

IPF Certificate in Property Investment

14 and 10

Japanese Bankers Association

Registered Representative of Public Securities Examination (pre-April 1990)

Representative of Public Securities Qualification - Class 1

Japanese Securities Dealers Association

Representative of Public Securities Qualification - Type 1 (provided it is accompanied by appropriate qualifications in Regulation and Ethics, Investment Principles and Risk and Personal Taxation

2, 3, 12, 13

Representative of Public Securities Examination (pre April 1990)

Representative of Public Securities Qualification - Type 1

Law Society of England and Wales

Module B(ii), Securities and Portfolio Management

Module B(i), Retail Branded/ Packaged Products

18, 19

Law Society of England and Wales/ Law Society of Northern Ireland

Solicitor

Law Society of England and Wales/ Law Society of Scotland/ Law Society of Northern Ireland

Solicitor

17, 18, 19

Lloyd's

Lloyd's and London Market Introductory Test (Formerly the Lloyd's Introductory Test)

Lloyd's/ Chartered Insurance Institute

Lloyd's Market Certificate

London Stock Exchange (records are now kept by The Chartered Institute for Securities and Investment (CISI); Formerly the Securities and Investment Institute (SII); formerly The Securities Association)

London Stock Exchange Full Membership Exams (and other regional stock exchanges as merged with London Stock Exchange) - where candidate holds three or four papers or holds both the Stock Exchange Practice and Techniques of Investment papers

2, 3, 4 and 6, 12, 13

14 and 10

Stock Exchange Registered Representative Examination

15, 16, 17, 18, 19

15, 16

Manchester Metropolitan University

BA (Hons) Financial Services, Planning and Management

2, 3, 4 and 6, 12, 13

N/A

In-house module (only where the firm can demonstrate that none of the listed examinations are appropriate)

15, 16, 17, 18, 19

NIBE SVV the Dutch Institute for the Banking, Insurance and Stockbroking Industry

Examination

Pensions Management Institute

Diploma in Regulated Retirement Advice

4 and 6

Fellow or Associate by examination

Module 201: Providing for Retirement

Fellow or Associate

15, 16, 17, 18, 19

Diploma in Member-Directed Pension Scheme Administration

Fellow or Associate by examination

18, 19

Sheffield Hallam University

BA in Financial Services (1995 to 2001)

4 and 6

MA in Financial Services (1995 to 2001)

Post Graduate in Financial Services (1995 to 2001)

Society of Investment Analysts in Ireland

Certificate in Investment Management (at least 3 papers passed by examination)

14 and 10

South African Institute of Financial Markets

Ordinary and Senior Certificates

8, 14 and 10

Swiss Finance Institute

Dual degree Executive MBA in Asset and Wealth Management

14 and 10

The Securities Analysts Association of Japan (SAAJ)

CMA Level 2 (for individuals advising before 30 June 2009)

2, 3, 12, 13

CMA Level 2 (for individuals not advising before 30 June 2009 - provided it is accompanied by appropriate qualifications in Regulation and Ethics, Investment Principles and Risk and Personal Taxation)

CMA Level 2

Secondary Examination

Chartered Member

14 and 10

University of Stirling

BA in Finance

2, 4 and 6, 12

BA in Finance and Accounting

2, 3, 4 and 6, 12, 13

MSc in Finance

2, 3, 12, 13

MSc in international Accounting and Finance (where candidates hold modules as recommended by the firm)

2, 3, 12, 13

14 and 10

MSc in Investment Analysis

2, 3, 12, 13

14 and 10

University of the West of England

BA in Financial Services (1995 to 2001)

4 and 6

MA in Financial Services (1995 to 2001)

Post Graduate in Financial Services (1995 to 2001)

31/12/2012

TC App 5

Appropriate qualification criteria

TC App 5.1

01/01/2011

TC App 5.1.1

Introduction

TC Appendix 4E contains a list of appropriate qualifications for the purposes of TC 2.1.10 E.

This Appendix sets out:

(1)

the criteria which the FSA may take into account when assessing a qualification provider; and

(2)

the information the FSA will expect the qualification provider to provide if it asks the FSA to add a qualification to the list of appropriate qualifications in TC Appendix 4 E.

Criteria for assessing a qualification provider

The FSA will expect the qualification provider of an appropriate qualification to have, in the FSA's opinion:

(1)

assessors and qualification developers who are trained and qualified;

(2)

valid, reliable and robust assessment methods;

(3)

robust governance and a clear separation of function between its qualification services and any other services it performs, including effective procedures for managing any conflicts of interest;

(4)

procedures for reviewing and refreshing its syllabus and question banks to ensure that they are relevant and up to date;

(5)

robust and credible procedures for assessing a candidate's demonstration of the learning outcomes specified in the relevant examination standards;

(6)

robust arrangements for contingency and business continuity planning in relation to its qualification services;

(7)

appropriate records management procedures in relation to its qualification services;

(8)

procedures for dealing with inappropriate conduct by candidates, for example, attempting to obtain or obtaining qualifications dishonestly;

(9)

robust procedures for the setting of assessments and marking of results; and

(10)

adequate resources in order to be financially viable.

Information about the qualification to be provided to the FSA

If a qualification provider asks the FSA to add a qualification to the list of appropriate qualifications in TC Appendix 4 E, the FSA will expect the qualification provider to:

(1)

where relevant, specify the qualifications framework within which the qualification is placed;

(2)

specify the activity in TC Appendix 1 to which the qualification relates;

(3)

set out the recommended prior knowledge, attainment or experience for candidates;

(4)

where relevant, set out the exemption policy for a candidate's prior learning or achievement;

(5)

provide the relevant learning materials to the FSA together with an explanation of how those learning materials correspond to the content of the most recent examination standards. Any content of the examination standards which has been excluded from the learning materials must be justified;

(6)

where applicable, explain how grading is applied;

(7)

where applicable, explain the provider's rules of combination;

(8)

provide details of expected learning hours or any other similar arrangements;

(9)

where applicable, specify the level of the overall qualification with reference to the relevant qualification framework or, if there is no relevant qualification framework, the European Qualifications Framework and the percentage of the qualification at that level, as well as the percentages and the levels for the remainder of the qualification;

(10)

provide details of any credit for prior learning included in the qualification together with an explanation of how it meets the most recent examination standards; and

(11)

provide an explanation of how the qualification compares in quality and standard to other similar qualifications.

Information about the qualification provider to be provided to the FSA

When considering whether to include or retain a qualification in the list of appropriate qualifications, the FSA may consider, where relevant:

(1)

whether the qualification provider has in place suitable arrangements for:

(a)

meeting its statutory duties in relation to equality and diversity; and

(b)

reducing barriers to learning, for example, for candidates with learning difficulties;

(2)

any concerns, issues or investigations which have been raised by the qualification provider's qualifications regulator;

(3)

the annual pass rates of each of the relevant qualifications;

(4)

the quality of the service the qualification provider provides to candidates in relation to qualifications and its complaints procedures;

(5)

how the qualification provider maintains its qualifications to ensure they remain comparable to other qualifications in the same sector; and

(6)

whether the qualification provider gives candidates reasonable notice of any syllabus change, change in method of assessment or pass standards;

(7)

information supporting the criteria in TC Appendix 5G paragraph 3.

01/01/2011

TC App 6

Accredited bodies

TC App 6.1

Accredited bodies

01/02/2011

TC App 6.1.1

Introduction

An accredited body is a body appearing in the list of such bodies in the Glossary.

Information on accredited bodies, including guidance on the process for including an applicant body in the list, is set out below and the obligation to pay the application fee is set out in FEES 3.2.

[deleted]

Process for including a body in the list of accredited bodies

In considering the compatibility of a proposed addition with the regulatory objectives, the FSA will determine whether the applicant will, if accredited, contribute to securing an appropriate degree of protection for consumers having regard in particular to:

(1)

the matters set out in paragraphs 10 to 20; and

(2)

the rules and practices of the applicant.

An application to the FSA to be added to the list of accredited bodies should set out how the applicant will satisfy the criteria in paragraphs 10 to 20. The application should be accompanied by a report from a suitable auditor which sets out its independent assessment of the applicant's ability to meet these criteria. An application form is available from the FSA upon request.

When considering an application for accredited body status the FSA may:

(1)

carry out any enquiries and request any further information that it considers appropriate, including consulting other regulators;

(2)

ask the applicant or its specified representative to answer questions and explain any matter the FSA considers relevant to the application;

(3)

take into account any information which the FSA considers appropriate to the application; and

(4)

request that any information provided by the applicant or its specified representative is verified in such a manner as the FSA may specify.

The FSA will confirm its decision in writing to the applicant.

The FSA will enter into an agreement with the applicant or accredited body which will specify the requirements that the accredited body must meet. These will include the matters set out in paragraphs 10 to 20. Approval as an accredited body becomes effective only when the name of the applicant is added to the Glossary definition of accredited body.

Paragraphs 10 to 20 set out the criteria which an applicant should meet to become an accredited body and which an accredited body should meet at all times.

Acting in the public interest and furthering the development of the profession

10.

The FSA will expect an accredited body to act in the public interest, to contribute to raising consumer confidence and professional standards in the retail investment advice market and to promoting the profession.

Carrying out effective verification services

11.

If independent verification of a retail investment adviser's professional standards has been carried out by an accredited body, the FSA will expect the accredited body to provide the retail investment adviser with evidence of that verification in a durable medium and in a form agreed by the FSA. This is referred to in this Appendix and TC 2.1.28 R as a 'statement of professional standing'.

12.

The FSA will expect an accredited body to have in place effective procedures for carrying out its verification activities. These should include:

(1)

verifying that each retail investment adviser who is a member of or subscriber to the accredited body's verification service has made an annual declaration in writing that the retail investment adviser has, in the preceding 12 months, complied with APER and completed the continuing professional development required under TC 2.1.15 R;

(2)

verifying annually the continuing professional development records of no less than 10% of the retail investment advisers who have used its service in the previous 12 months to ensure that the records are accurate and the continuing professional development completed by the retail investment advisers is appropriate; and

(3)

verifying that, if required by TC, the retail investment advisers who use its services have attained an appropriate qualification. This should include, where relevant, checking that appropriate qualification gap-fill records have been completed by the retail investment advisers.

13.

The FSA will not expect an accredited body to carry out the verification in paragraph 12(3) if a retail investment adviser provides the accredited body with evidence in a durable medium which demonstrates that another accredited body has previously verified the retail investment adviser's appropriate qualification, including, where relevant, appropriate qualification gap-fill.

14.

The FSA will expect an accredited body to make it a contractual condition of membership (where a retail investment adviser is a member of the accredited body) or of using its verification service (where a retail investment adviser is not a member of the accredited body) that, as a minimum, the accredited body will not continue to verify a retail investment adviser's standards and will withdraw its statement of professional standing if the accredited body is provided with false information in relation to a retail investment adviser's qualifications or continuing professional development or a false declaration in relation to a retail investment adviser's compliance with APER. In this regard, an accredited body must have in place appropriate decision-making procedures with a suitable degree of independence and transparency.

Having appropriate systems and controls in place and providing evidence to the FSA of continuing effectiveness

15.

The FSA will expect an accredited body to ensure that it has adequate resources and systems and controls in place in relation to its role as an accredited body.

16.

The FSA will expect an accredited body to have effective procedures in place for the management of conflicts of interest and have a well-balanced governance structure with at least one member who is independent of the sector.

17.

The FSA will expect an accredited body to have a code of ethics and to ensure that its code of ethics and verification service terms and conditions do not contain any provisions that conflict with APER.

Ongoing cooperation with the FSA

18.

The FSA will expect an accredited body to provide the FSA with such documents and information as the FSA reasonably requires, and to cooperate with the FSA in an open and transparent manner.

19.

The FSA will expect an accredited body to share information with the FSA (subject to any legal constraints) in relation to the professional standards of the retail investment advisers who use its service as appropriate. Examples might include conduct issues, complaints, dishonestly obtaining or falsifying qualifications or continuing professional development or a failure to complete appropriate continuing professional development. The FSA will expect an accredited body to notify the firm if issues such as these arise.

20.

The FSA will expect an accredited body to submit to the FSA an annual report by a suitable independent auditor which sets out that auditor's assessment of the quality of the body's satisfaction of the criteria in paragraphs 10 to 19 in the preceding 12 months and whether, in the auditor's view, the body is capable of satisfying the criteria in the subsequent 12 months. The FSA will expect this annual report to be submitted to the FSA within three months of the anniversary of the date on which the accredited body was added to the Glossary definition of accredited body.

Withdrawal of accreditation

21.

If an accredited body fails or, in the FSA's view, is likely to fail to satisfy the criteria, the FSA will discuss this with the accredited body concerned. If, following a period of discussion, the accredited body has failed to take appropriate corrective action to ensure that it satisfies and will continue to satisfy the criteria, the FSA will withdraw the accredited body's accreditation by removing its name from the list of accredited bodies published in the Glossary. The FSA will expect the body to notify each retail investment adviser holding a current statement of professional standing of the FSA's decision. A statement of professional standing issued by the accredited body before the withdrawal of accreditation will continue to be valid until its expiration.

31/12/2012

TC App 7

Guidelines for qualification gap-fill for retail investment advice

TC App 7.1

Guidelines for qualification gap-fill for retail investment advice

01/02/2011

TC App 7.1.1

TC Appendix 7G - Guidelines for qualification gap-fill for retail investment advice

01/04/2011

TC App 8

Professional Standards Data Submission Form

TC App 8.1

Professional Standards Data Submission Form

31/12/2012

TC App 8.1.1

Retail Investment Adviser - Professional Standards Data Submission Form

(all fields are mandatory)

Firm details

Firm Name

Firm Reference Number (FRN)

Person submitting form

Name

Individual Reference Number (IRN) (where applicable)

Position in firm

Contact telephone number

Contact email address

Date of submission

Retail Investment Advisers

Column 1

Column 2

Column 3

Column 4

Column 5

Name

Individual Reference Number (IRN)

Qualification Status (part or fully qualified)

Accredited Body

Date adviser began activity of a retail investment adviser

31/12/2012

Transitional Provisions and Schedules

TC TP 1

Designated Investment Business: Assessments of competence before commencement

TC TP 1.1

1.1

(1)

This rule applies in respect of an employee of a firm employed at commencement who had, before commencement, been assessed as competent by a firm in accordance with the applicable rules of its previous regulator.

(2)

An employee described in (1) is exempt from the requirements in this sourcebook to attain an appropriate qualification if the activity (or role of a supervisor) carried on by that employee after commencement is the same or substantially the same as that for which the employee had been assessed as competent before commencement.

TC TP 1.2

1.2

If an employee of a firm is exempted from a qualification requirement under TC TP 1.1R and any other firm subsequently employs the individual, that exemption continues to apply in respect of that subsequent employment on the same basis provided that:

(1)

the activity which the employee carries on (or the role of the supervisor) continues to be the same, or substantially the same, as that in respect of which the employee had previously enjoyed the benefit of the exemption; and

(2)

the individual had not experienced any significant break in employment since the last employment in respect of which the individual had the benefit of an exemption under TC TP 1.

01/01/2011

TC TP 2

Designated Investment Business: Assessments of competence in 12 month period after commencement

2.1

(1)

This rule applies in respect of an employee who had, on 31 October 2007, the benefit of an exemption under transitional rule 2 in TC TP 1.1R in the form it was in on 31 October 2007.

(2)

An employee described in (1) is exempt from the requirements in this sourcebook to attain an appropriate qualification but only in respect of the activities in respect of which the employee had the benefit of that exemption as at 31 October 2007.

2.2

If an employee of a firm is exempted from a qualification requirement under TC TP 2.1R and any other firm subsequently employs the individual, that exemption continues to apply in respect of that subsequent employment on the same basis provided that:

(1)

the activity which the employee carries on continues to be the same, or substantially the same, as that in respect of which the employee had previously enjoyed the benefit of the exemption; and

(2)

the individual had not experienced any significant break in employment since the last employment in respect of which the individual had the benefit of an exemption under TC TP 2.

2.3

At 31 October 2007 transitional rule 2 in TC TP 1.1R applied to a firm whose employees at commencement had not been subject to any specific training and competence requirements of a previous regulator. This rule allowed the firm to assess such individuals as competent in the first twelve months after commencement without their having to pass an exam. The exemption applied only in respect of the activities which the individual was able to carry on before commencement where they were the same or substantially the same.

01/01/2011

TC TP 3

Regulated Mortgage Contracts: Assessments of competence under the Mortgage Code Compliance Board Rules

3.1

(1)

This rule applies:

(a)

in relation to regulated mortgage contracts; and

(b)

in respect of an individual employed by a firm at 31 October 2004.

(2)

If the individual described in (1) was assessed as competent by the firm before 31 October 2004 in accordance with the rules of the Mortgage Code Compliance Board applying immediately before 31 October 2004, the individual is exempt from the requirements in this sourcebook to attain an appropriate qualification provided that:

(a)

the activity which the individual carries on continues to be the same, or substantially the same, as that immediately before 31 October 2004; and

(b)

the individual had not experienced any significant break in employment since the last employment in respect of which the individual had the benefit of an exemption under this rule.

3.2

If an employee of a firm is exempted from a qualification requirement under TC TP 3.1R and any other firm subsequently employs the individual, that exemption continues to apply in respect of that subsequent employment on the same basis provided that:

(1)

the conditions in TC TP 3.1R(2)(a) and (b) are met; and

(2)

the firm assesses the individual to be competent in accordance with TC 2.1.1 R.

01/01/2011

TC TP 4

Home Reversion Plans: Assessments of competence before 6 April 2007 in relation to lifetime mortgages

4.1

(1)

This rule applies in respect of an individual employed by a firm at 6 April 2007, if that individual had before that date been assessed as competent by the firm in relation to:

(a)

advising on lifetime mortgages;

(b)

designing scripted questions for use in non-advised sales to customers of lifetime mortgages; or

(c)

overseeing non-advised sales of lifetime mortgages.

(2)

An individual in (1) is exempt from the qualification requirements in this sourcebook in relation to activities carried on concerning home reversion plans that correspond to those in (1) provided that:

(a)

the individual has been assessed as competent to apply the knowledge and skills necessary to carry on the relevant home reversion activity before 6 April 2007;

(b)

the home reversion activity which the individual carries on continues to be the same, or substantially the same as that which the individual carried on immediately before 6 April 2007; and

(c)

the individual had not experienced any significant break in employment since the last employment in respect of which the individual had the benefit of an exemption under this rule.

4.2

If an employee of a firm is exempted from a qualification requirement under TC TP 4.1R and any other firm subsequently employs the individual, that exemption continues to apply in respect of that subsequent employment on the same basis provided that:

(1)

the conditions in TC TP 4.1R(2)(b) and (c) are met; and

(2)

the firm assesses the individual to be competent in accordance with TC 2.1.1 R.

4.3

TC TP 4 does not apply to an individual in TC TP 4.1R(1) after 6 April 2009 unless the individual passes an appropriate home reversions top-up examination before that date.

01/01/2011

TC TP 5

Home Reversion Plans: Assessments of competence before 6 April 2007 in relation to Home Reversion Plans only

5.1

(1)

This rule applies in respect of an individual employed by a firm at 6 April 2007 (other than an individual described in TC TP 4.1R).

(2)

The individual in (1) is exempt from the examination requirements in this sourcebook in relation to the following:

(a)

advising on home reversion plans;

(b)

designing scripted questions for use in non-advised sales to customers of home reversion plans; or

(c)

overseeing non-advised sales of home reversion plans.

(3)

The exemption in (2) only applies if:

(a)

the individual has been assessed as competent to apply the knowledge and skills necessary to engage in or oversee the relevant home reversion activity before 6 April 2007;

(b)

the home reversion activity which the individual carries on continues to be the same, or substantially the same as that immediately before 6 April 2007; and

(c)

the individual had not experienced any significant break in employment since the last employment in respect of which the individual had the benefit of an exemption under this rule.

5.2

If the individual has not passed an appropriate examination before 6 April 2009, the individual in TC TP 5.1R(1) will cease to be exempt from the appropriate examination requirement.

5.3

If an employee of a firm is exempted from an examination requirement under TC TP 5.1R and any other firm subsequently employs the individual, that exemption continues to apply in respect of that subsequent employment on the same basis provided that:

(1)

the conditions in TC TP 5.1R3(b) and (c) are met; and

(2)

the firm assesses the individual to be competent in accordance with TC 2.1.1 R.

01/11/2007

TC TP 6

Transitional provisions relating to assessments of competence generally

6.1

If appropriate, a firm may treat a competence assessment carried out under TC in the form it was in before 1 November 2007 as being sufficient to satisfy TC 2.1.1 R.

01/11/2007

TC TP 7

Transitional provisions relating to waivers from existing examination requirements

7.1

(1)

This provision applies to a firm which benefited from a waiver from an examination requirement in TC prior to 1 November 2007 in respect of an employee. If such a firm would otherwise find itself in breach of an examination requirement in TC from that date as a result of the re-categorisation of clients in COBS, the firm may allow that employee to continue carrying on the activities in respect of which the waiver was granted until 31 October 2008 though he has yet to satisfy the relevant examination requirement in TC.

(2)

If an employee of a firm is exempted from an examination requirement under TC TP 7.1(1) and any other firm subsequently employs the individual, that exemption continues to apply in respect of that subsequent employment on the same basis provided that:

(a)

the activity which the employee carries on continues to be the same, or substantially the same, as that in respect of which the employee had previously enjoyed the benefit of the exemption; and

(b)

the employee had not experienced any significant break in employment since the last employment in respect of which the relevant exemption was granted.

01/11/2007

TC TP 8

Transitional provisions relating to time limits for attaining qualifications

8.1

An employee who is carrying on an activity specified in TC Appendix 1 on 1 January 2011 will, for the purposes of TC 2.2A.1 R, be regarded as starting to carry on that activity on that date.

01/01/2011

TC Sch 1

Record keeping requirements

01/01/2011

TC Sch - 1.1

TC 2.1.24 R provides:

A firm must, for the purposes of TC 3.1.1 R (Record keeping), make and retain records of:

(1)

the continuing professional development completed by each retail investment adviser; and

(2)

the dates of and reasons for any suspension of the continuing professional development requirements under TC 2.1.17 R.

31/12/2012

TC Sch 1.1

TC 3.1.1 R provides:

A firm must make appropriate records to demonstrate compliance with the rules in this sourcebook and keep them for the following periods after an employee stops carrying on the activity:

(1)

at least 5 years for MiFID business;

(2)

3 years for non-MiFID business; and

(3)

indefinitely for a pension transfer specialist.

01/11/2007

TC Sch 2

Notification requirements

01/01/2011

TC Sch 2.

Handbook reference

Matter to be notified

Contents of notification

Trigger event

Time allowed

TC 2.1.31 R

Notifications - issues relating to the competency and behaviour of retail investment advisers.

(1) Information about any circumstances relevant to the issue; and
(2) information about any steps which a firm has taken or intends to take to rectify the position or prevent any future potential occurrence.

Becoming aware, or having information which reasonably suggests that any of the following has occurred or may occur, and the event is significant:

As soon as reasonably practicable.

(1) a retail investment adviser, who has been assessed as competent for the purposes of TC 2.1.1 R, is no longer considered competent for the purposes of TC 2.1.1 R;

(2) a retail investment adviser has failed to attain an appropriate qualification within the time limit prescribed by TC 2.2A.1 R (1);

(3) a retail investment adviser has failed to comply with a Statement of Principle in carrying out his controlled function; and

(4) a retail investment adviser has performed an activity in TC Appendix 1 before having demonstrated the necessary competence for the purposes of TC 2.1.1 R and without appropriate supervision.

TC 2.2B.3 R

Notifications - professional standards data

(1) The firm's name and FSA Firm Reference Number;
(2) the names and FSA Individual Reference Numbers of the firm's employees who are retail investment advisers, including trainees;
(3) whether a retail investment adviser has attained an appropriate qualification;
(4) if a retail investment adviser has not attained an appropriate qualification, the date on which the employee began to carry on the activity of a retail investment adviser; and
(5) the name of the accredited body used for the purposes of TC 2.1.27 R.

The end of each quarter.

Within 20 business days of the end of the quarter, unless TC 2.2B.3 R (3) applies.

31/12/2012

TC Sch 3

Fees and other required payments

01/01/2011

TC Sch 3.1

There are no requirements for fees or other payments in TC.

01/11/2007

TC Sch 4

Powers exercised

01/01/2011

TC Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in TC:

Section 138 (General rule-making power)

Section 149 (Evidential provisions)

Section 150(2) (Actions for damages)

Section 156 (General supplementary powers)

01/11/2007

TC Sch 4.2

The following powers in the Act have been exercised by the FSA to give the guidance in TC:

Section 157(1) (Guidance)

01/12/2004

TC Sch 5

Rights of action for damages

01/01/2011

TC Sch 5.1

The table below sets out the rules in TC contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

01/11/2007

TC Sch 5.2

If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a "private person" under section 150 (or, in certain circumstances, his fiduciary or representative). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

01/12/2004

TC Sch 5.3

The column headed "For other person?" indicates whether the rule is actionable by a person other than a private person (or his fiduciary or representative). If so, an indication of the type of person by whom the rule is actionable is given.

01/12/2004

TC Sch 5.4

Table: Actions for damages: Training and Competence sourcebook

Right of action under section 150

Chapter/Appendix

Section/Annex

Paragraph

For private person

Removed

For other person

Rules in TC

Yes TC 1.2.1 R

01/11/2007

TC Sch 6

Rules that can be waived

01/01/2011

TC Sch 6.1

As a result of regulation 10 of the Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (SI 2007/1973) the FSA has power to waive all its rules, other than rules made under section 247 (Trust scheme rules) or section 248 (Scheme particulars rules) of the Act. However, if the rules incorporate requirements laid down in European directives, it will not be possible for the FSA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives.

06/01/2011