Press Release

HIGHER LEVELS OF COMPETENCE ENDORSED BY CII

1 March 2007

The Chartered Insurance Institute (CII) welcomes the FSA's proposal in CP07/04 that, following the introduction of revised rules on 1 November 2007, all authorised firms must employ personnel with the skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them. This is to be known as the 'competent employees rule'. The change follows the FSA's review of its Training and Competence Rules.

CII director general Dr Alexander Scott says, "It seems to us that the proposed change establishes total clarity as to what is expected. The marketplace will need to respond by reviewing current training provision to ensure that training and competence schemes are robust.

"Many firms are already investing significantly in training. The CII has ensured that our learning and assessment programmes are relevant to the new needs now emerging and that we are better equipped to work with employers. We now offer employers solutions including the provision of the CII's face-to-face training, online learning and assessment and a facility for firms to establish their own exam centre.

"Our suite of qualifications and services represents the best safe harbour across retail investment and insurance."

The FSA have also confirmed the continuation of the appropriate examination regime for the investment and mortgage advice sectors.

"This sends a clear signal that exams should be part of any satisfactory T&C plan," comments Dr Scott. "It also demonstrates the confidence the FSA has in our sector where we are subject to our own regulator in the Qualifications & Curriculum Authority (QCA). The CII has worked hard to ensure that our exam procedures stand up to the toughest QCA scrutiny and we are one of a small number of awarding bodies to be awarded five-day accreditation status."

The proposed changes to the FSA Training & Competence Sourcebook will come into force on November 1, 2007 when the Markets in Financial Instruments Directive (MiFID) is to be implemented.