13A 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) passedeach module of an appropriate examination. This assessment need not take place before the employee starts to carry on the activity.1413
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.
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 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 passan appropriate examinationas well except where the employee is giving advice on packaged products, see TC 2.1.5 R.
If a firm is satisfied that an employee meets the conditions in this rule then the requirements to have passedeach module of an appropriate examinationwill only apply if that employee is carrying on one of the activities specified in this rule.
has at least three years' up-to-date relevant experience in the activity in question obtained while employed outside the United Kingdom;
has not previously been required to comply fully with the relevant examinationrequirements in TC 2.1.1 R; and
has passed the relevant regulatory module of an appropriate examination;
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 packaged products or is a broker fund adviser.
The relevant activities are:
In ensuring that an examination is appropriate, a firm should select an appropriate examination from the list of examinations maintained by The Financial Services Skills Council.
Compliance with (2) may be relied on as tending to establish compliance withthe rules referred to in (1).
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.