The UK’s Financial Services Authority is introducing a more principles-based, outcome-focused and flexible proficiency regime.

The new Training and Competence regime includes a new, shorter, simpler and more principles-based T & C Sourcebook (it is approximately one third of its current length). The new regime, which comes into force on November 1, is based on high-level rules and guidance, but will retain the existing exam requirements for retail business. This revision is part of the FSA’s drive to simplify and streamline its Handbook.

Dan Waters, director of Retail Policy at the FSA, said, “The new T & C regime is the result of a comprehensive review of our T & C requirements, conducted as part of our move to more principles-based regulation. We believe the new regime will give firms more flexibility to achieve the outcomes we want in a way that suits them best. There is, though, no question of lowering the competence standards we expect of firms and their staff – these play a key role in protecting consumers.”