The FSA has recently published a consultation paper entitled “Competence and ethics” (CP10/12).

The consultation paper sets out the FSA’s proposals to strengthen and clarify its competence and ethics requirements for the financial services sector. Within the consultation paper, the FSA has published a report by the Cattellyst Consultancy, which sets out the findings of a review of how firms implemented the competence regime introduced by the FSA in 2007. These findings assisted the FSA in producing the consultation paper.

The proposals in the consultation paper are aimed at both firms and individuals performing certain roles within firms. The proposals include introducing a 30 month time limit, within which relevant individuals must successfully pass all modules of a qualification required for their role, and clarifying how individuals carrying out approved persons roles should demonstrate good standards of ethical behaviour.

The consultation paper can be viewed here. Comments can be made until 6 September 2010.