If a firm's employees engage in an activity with or for private customers, the firm must ensure that if an employee is not assessed as competent, but is permitted in accordance with TC 2.4.2 R to engage in a particular activity under supervision, the employee is appropriately supervised until assessed as competent in that activity.2
review and assessment of work;
individual coaching and assessment of performance, for example, role-play and accompanied private customer visits.
If an employee who is not assessed as competent is engaging in the activity of giving advice on investments which are packaged products 2(other than basic advice) 3to private customers, the firm must ensure that the individual supervising that employee:
has passed an appropriate examination; and1
has the technical knowledge, assessment skills and coaching skills to act as supervisor, before acting as supervisor, and that this competence is maintained.
2What level of monitoring is appropriate will depend on all the circumstances including the knowledge and skills of the employee. It is likely to be less intense than the level of supervision carried out under TC 2.7.1 R. If the employee is, for example, a sole trader, or the only director or partner engaging in the activity, the firm should make whatever arrangements are appropriate in the circumstances, bearing in mind that it can become difficult to be objective about one's own performance.