As the firm is responsible for complying with the Minimum Competency Code, the firm should be very prudent with all staff working under or on behalf of the firm’s authorisation.
All present/newly appointed staff should be informed of their responsibilities under the Minimum Competency Requirements. Staff members who are required to obtain full qualification within 4 years of their appointment date should be informed of this.
It should be clear at the outset that staff working in the capacity of financial advisors must retain accredited status (via complying with annual CPD requirements) or, in the case of individuals who are not grandfathered or who do not have a qualification, that they are working towards acquiring a qualification. In the case of grandfathered or qualified individuals, a good way of ensuring that this is accomplished is by inserting a clause into the individual’s contract of employment requiring them to comply with ongoing CPD requirements and requiring them to submit CPD hours for the firm’s CPD records.
For new staff, the initial recruitment stage should clearly state that the Minimum Competency Requirements apply. The job specification for financial advisors should clearly state that the achievement of relevant qualifications within the required time-frame and the compliance with the CPD requirements are key requirements of the job.
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