The FCA and the CII have launched a new ‘Level 4’ test for practising advisers. This has to be applauded as many advisers have had no reassessment since first gaining their qualification. Some of our firms already conduct their own assessments, but this new exam, which reportedly will be refreshed each year, should make life easier. There is no compulsion to take the test. The FCA says ‘we will encourage firms to use it and we may also use it as a supervisory tool if we think it is appropriate to ask firms to re-test specific advisers.’
From this it does not take inspired reasoning to work out that the FCA will be keeping an informal note of which firms do, and which do not, avail themselves of the facility. If an adviser should fail the test, the regulator would not inhibit him or her from carrying on advising, though the firm would of course be expected to do something about it. It seems something of ‘no brainer’ that firms should take on this test.
The above is the lead article in our latest monthly News Notes – October 2018. Other topics in this edition include:
- Reasonable Steps
- Due Diligence
- GDPR
- Action Fraud
- Annual Report On Top 5 Execution Venues
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Haven Risk Management : FCA Compliance Consultants