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Law360, London (April 22, 2020, 2:27 PM BST ) The Financial Conduct Authority has said it will not take action against workers performing a regulated function without the necessary qualifications if they cannot get accredited because of the coronavirus crisis.
The City watchdog has granted employees of banks and insurers an extra year to sit professional exams. It said Tuesday that it will not penalize employers if their staff cannot take exams with accredited bodies within the required 48 months of starting to provide a regulated service.
Employees will now have a total of five years to sit their exams, giving them an extra 12 months, as a result of the disruption caused by the COVID-19 outbreak.
"Accredited bodies and other professional qualification providers are canceling exams because of coronavirus, with no specific arrangements in place to reschedule them," the FCA said.
"We have no intention of taking action against a firm or accountable individual that is not able to ensure that an employee has attained an appropriate qualification within the required 48 months because the relevant examinations were canceled or postponed."
Individuals providing financial services to clients must take exams to become properly qualified and regulated by bodies such as the Chartered Institute of Management Accountants and the Association of Corporate Treasurers. This could include meeting standards on ethical behavior and sitting qualifications such as the diploma in professional financial advice and the certificate in pension transfers.
The additional 12 months will allow staff to carry out extra duties during the coronavirus pandemic to help manage risks at banks and insurers, the watchdog said.
The regulator said that finance companies will be required to assess whether their staff need a 12-month extension to sit their exams, and should declare why. Employers can apply to the FCA for the extension until the end of October.
The FCA has a training and competence regime to ensure that staff at financial services companies are qualified to provide advice to consumers. The regime includes guidance on assessing the competence of staff and investing in their continued training.
The watchdog aims to ensure that advisers have the knowledge and expertise to carry out their responsibilities. But it is the responsibility of individual companies to decide which methods and providers they use when assessing their employees' competence.
--Editing by Ed Harris.
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