ISLE OF MAN FINANCIAL SUPERVISION COMMISSION STATEMENT OF GOOD PRACTICE TRAINING AND DEVELOPMENT

Transcription

1 ISLE OF MAN FINANCIAL SUPERVISION COMMISSION STATEMENT OF GOOD PRACTICE TRAINING AND DEVELOPMENT March 2001

2 1. INTRODUCTION 1.1 Background to this Statement of Good Practice The Isle of Man has been recognised internationally as a jurisdiction which has a robust and effective regulatory environment. One of the many reasons for this recognition is the level of depositor, investor and consumer protection provided within the Island - and this can be enhanced by the knowledge and experience of those individuals providing products and services to their clients. The requirements of the Financial Supervision Commission ( the Commission ) relating to training and development are to be found within the Commission s licensing policies for the various categories of licenceholder and also within its Codes. Indeed, the fit and proper test rests upon three criteria - integrity, solvency and competence - with training and development being key to achieving and maintaining competence. It was determined to issue this Statement of Good Practice ( the Statement ) in order to bring together details of the relevant regulatory requirements, and to further promote the use of training and development throughout all layers of a licenceholder s staff. 2. THE REGULATORY REQUIREMENTS 2.1 The Fit and Proper Test - Competence Element The fit and proper test is both an initial test at the time of granting a licence and a continuing test. Thus competence must not only be demonstrated at the time of the granting of a licence, it must also be maintained at all times whilst continuing to hold a licence. Full details of all the elements of the test can be found within the Regulatory Guides for Banks and Building Societies, Investment Businesses and Collective Investment Schemes, and within paragraph 2 of the Guidance Notes on Licensing Policy for Corporate Service Providers. 1

3 Competence is far more than the avoidance of incompetence - it extends to having adequate knowledge of the business and of the environment in which it is operating, efficiency, reliability, proper organisation of the business, compliance with statutory rules and regulations and, where appropriate, non-statutory codes of practice. The Commission assesses competence in the light of the type of business undertaken, and it directs its attention primarily to three main areas - qualifications and training, experience and performance. The Commission takes account of the qualifications and experience of management and, if appropriate, the directors and controllers of any licenceholder. In so doing, it will take into account relevant professional qualifications and the successful completion of recognised industry-based courses and examinations. The Commission also recommends that licenceholders employ people with recognised qualifications in all specialised areas of the business. Competence extends beyond knowledge of products and services and includes the quality of the service provided to customers. The Guidance Notes on Licensing Policy for Corporate Service Providers states, All staff whose responsibilities include the performance of any of the regulated activities should have received and should continue to receive on an on-going basis, appropriate training to enable them to understand and fulfil their responsibilities competently. The Commission will keep this area under review in line with international expectations. 2.2 Regulatory Codes In addition to playing an important role in the fit and proper test, training and development also has application for all licensed institutions. The Financial Supervision Commission Conduct of Business Regulatory Code, paragraph 6.1 states, Where the licenceholder employs staff or is responsible for the conduct of investment business by others, it should have adequate arrangements to ensure that such people are suitable, adequately trained and properly supervised and paragraph 6.6 states, A licenceholder should establish procedures to ensure the adequate supervision of staff and tied agents who should not be allowed or required to get out of their depth in terms of their experience and competence. Appropriate records relating to the training, experience and qualifications of staff and tied agents should be maintained, showing the categories of transaction which the person is competent to conduct. 2

4 3. CURRENT GOOD PRACTICE In many organisations general staff (not only directors, controllers, managers etc.) are becoming more empowered and as a result the need for their training and development increases. Often, such staff will be the face or voice of the business itself and the people through whom clients will judge the business as a whole. The industry has already responded to this change by encouraging and facilitating staff professional training and development, and the Commission is keen to support and enhance this initiative. It is recommended that this training is supplemented with on-going development, such as refresher courses and Continuous Professional Development ( CPD ). Individuals should be encouraged to share ownership of their own CPD, and it is recommended that each staff member maintain their own CPD record, perhaps having this reviewed by management as appropriate. The Commission does not intend to recommend any minimum number of hours of CPD to be undertaken, rather it is the appropriateness and quality of the CPD that counts. Staff require up to date technical knowledge, but additional soft skills are also important, for example training in issues concerning customer service, selling and handling difficult customers. A combination of methods such as training sessions, courses and conferences, delegation, examinations, relevant reading, one-to-one coaching etc. will help to prepare the individual to undertake his / her role. Rather than specify any obligatory rules for licenceholders in relation to particular benchmark qualifications, the Commission wishes to allow its licenceholders the ability to judge for themselves the most appropriate training and development plans for their staff, relevant to the work being performed. The following three guiding principles are a useful starting point: 1. The licenceholder should promote the training and development of staff working in all of its functional areas, and facilitate access to appropriate professional training whether or not those staff are conducting regulated activities. 3

5 2. The licenceholder should give regular and accurate feedback to its staff on their performance in order to allow the staff member and the licenceholder together to plan specific, quality, CPD areas for achievement. 3. The licenceholder should encourage its senior staff members to take joint ownership and control of their own development, whilst maintaining a guiding role in order to advance competence. For junior members of staff more guidance should be provided together with encouragement to take responsibility for maintaining their own records and an interest in their own development. 4. COURSES AVAILABLE AND SOURCES OF FURTHER INFORMATION There are a large number of professional bodies operating actively within the Isle of Man. Many work closely with the Isle of Man College and the Isle of Man International Business School in the provision of examination courses leading to the achievement of professional qualifications. It is also possible to study via distance learning. Some of these bodies also form a collaborative programme for CPD purposes. Often courses will be modular in nature and it could be that individuals may prefer only to study for particular modules rather than a whole course. Such modules could be selected from a variety of providers and could be tailored to meet development needs in specific areas. A selection of professional bodies and some relevant technical courses can be found at Appendix A, as can contact details. 4

6 Appendix A Details of Some Professional Bodies and Courses Offered Please note: this list is not exhaustive, is for information purposes only and there may be other suitable courses and qualifications available. The Chartered Institute of Bankers Tel: The Certificate in Financial Services Practice Diploma in Financial Services Management BSc(Hons) in Financial Services and Associateship Professional Investment Certificate Diploma in Trust and Estate Practice Certificate in Mortgage Advice & Practice Diploma in Mortgage Lending The Certificate for Financial Advisers Certificate in the Marketing of Financial Services Diploma in the Marketing of Financial Services Isle of Man Certificate in Offshore Administration Isle of Man Diploma in Offshore Administration The Chartered Insurance Institute Tel: Advisers The Financial Planning Certificate The Advanced Financial Planning Certificate Associateship of the Society of Financial Fellow of the Society of Financial Advisers The International Certificate for Financial Advisers The Insurance Foundation Certificate The Certificate of Insurance Practice Associateship of the Chartered Insurance Institute Fellowship of the Chartered Insurance Institute The Institute of Chartered Secretaries and Administrators Tel: Graduate of ICSA Associate / Fellow of ICSA Certificate in Company Secretarial Practice and Share Registration Practice Certificate in Offshore Finance and Administration Diploma in Offshore Finance and Administration Post Qualification Certificate in Local Government Law & Practice Post Qualification Certificate in Advanced Company Secretarial Practice Post Qualification Certificate in Commercial Contracts 5

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8 The Securities Institute Tel: Investment Administration Qualification Investment Advice Certificate Securities Institute Diploma Registered Representative Examinations The Compliance Institute Tel: Associates Examination The Institute of Personnel and Development Tel: Certificate of Personnel Practice Diploma of Personnel Practice Additional Information in Respect of Development of Systems and Employees Quality systems Quality assurance systems are in place such as the ISO 9000 series, the Business Excellence Model and Total Quality Management. These are predominantly based around procedures, however, training and development issues are encompassed in so much as they may have a bearing on the operation of an organisation s procedures. Further details are available from the Department of Trade and Industry. Investors in People framework In the 1990s Investors in People became the most widely used tool in the UK for linking learning and development to business objectives and for nurturing a culture of high performance to produce business excellence. 7

9 Contact Details The Isle of Man College Homefield Road Douglas Isle of Man IM2 6RB Tel: Fax: Andrew Qualtrough Investors in People Manager Department of Trade and Industry Nivison House 31 Prospect Hill Douglas Isle of Man IM1 1QS Tel: The Isle of Man International Business School The Nunnery Old Castletown Road Douglas Isle of Man IM2 1QB Tel: Fax: Training Services Manager Department of Trade and Industry Hills Meadow Douglas Isle of Man IM1 5EB Tel: