Transitional Provisions and Schedules

Part

TC Training and Competence

Chapter

Transitional Provisions and Schedules

Printed on: 01/11/2024

Rulebook at: 27/07/2012

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 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 2.1

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.

01/07/2011

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