About TC

More information on TC Standards & Good Practice Guidance

Background
TC Standards and Good Practice Guidance
A true industry-led solution
How might this be used?
What is available for me and my firm?

Background

Training and Competence (TC) has been a feature of the rule book since direct regulation was first introduced, with the primary purpose being to ensure standards of competence in financial services.

More recently the scope and rules for TC have changed significantly as a result of a number of factors:

• The move by the Financial Services Authority (FSA) towards a more principles based regulatory framework 
• The continuing introduction of legislation by the European Parliament  
• The implementation of a revised FSA TC Sourcebook (Nov 2007)
• The publishing of FSA PS10/18 – Competence and Ethics (Dec 2010) which included strengthening and a refocus on certain elements of TC
• The implementation of the Raising Professional Standards proposals as part of the FSA Retail Distribution Review (RDR)

These changes, whilst largely welcomed, have resulted in continued uncertainty for the industry and consequently requests from firms and individuals for guidance and consistency of TC standards and good practices.

We responded to these requests by sponsoring and working with the industry to develop the TC Standards and Good Practice Guidance to address this uncertainty. FSP Deputy CEO, Sarah Thwaites, said: "This is a good opportunity for the industry to establish good practice standards for Training and Competence, a key element in any firm's development of its staff, application of Treating Customers Fairly (TCF) and business performance."

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TC Standards and Good Practice Guidance

The Guidance has specifically been developed to help firms with the application of TC requirements in the absence of detailed rules. It does not try to replace the rules as that would be counter-productive. What it does do is:

• Raise awareness and understanding of TC and the obligations for firms, particularly senior managers, in a principles based environment.  
• Promote consistent TC practice within firms at a clearly defined industry benchmark standard.  
• Provide access to common and effective input guidance which enables firms to focus on the outcomes they wish to achieve.

The guidance follows the natural cycle of most TC schemes, as shown below, making it very easy to use.

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What is available for me and my firm?

The TC Standards and Good Practice Guidance 2011 provides access to a progressive portfolio of high quality resources which is freely available to all firms in every sector.
It includes:

• TC Outcome Standards - rule based guidance with specific and detailed application for firms whose employees fall in scope of the TC Sourcebook
• Good Practice Guidance - designed to prompt all firms to consider what is realistic to achieve through the application of good training and competence practice
• Good Practice Guidance for retail SME firms / Good Practice Guidance for RDR Implementation – practical guidance for smaller retail advice firms and those firms seeking to implement and comply with the RDR rules and requirements for professionalism
• National Standards of Competence for TC - links to the published occupational standards relevant to those responsible for delivery of good TC

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How might this be used?

Firms will want to use these resources in a number of different ways based on their size and complexity and the market sector they operate in. Firms can use this, for example:

• As a benchmark of current policy, practice and role performance
• As a blueprint for a TC Scheme or arrangement
• As a reference guide
• As a source of external good practice
• As a means of improving the effectiveness of current training delivery
• For audit purposes
• As part of the approach to TCF, and other principles for business, and evidencing progress against key measures
• To improve standards

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A true industry-led solution

The FSP are pleased to have been able to sponsor the development of these TC Standards and Good Practice Guidance. This was achieved by working with a truly industry representative Steering Group who had oversight of the programme and contributed development resource.

The Steering Group was chaired by John Williams, Skillfit Solutions, an independent consultant.

Steering Group members:

ABI
Skipton Group
Aviva
AFME
IMA
AIFA / AMI
Worksmart
Positive Solutions
Just Retirement
Openwork
Redland Business Solution

Many additional organisations have participated in various working groups, for which we are grateful. These include:

Legal and General
Butterfield Private Bank
Skandia
John Charcol
BNP Paribas
Axa-Sunlife
M&S Money
Buckles
Capita Financial Group
Honister Capital
Principality BS
Nationwide BS

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Redland Business Solutions - Driving Best Practice in TC Technology and Sponsors of The FSP Training and Competence Standards and Good Practice Guidance