• INDI Part 5.2 INDI Part 5.2 Training and competency programme

    • INDI 5.2.1 Appropriate programme to be delivered

      (1) An authorised firm must design, deliver and maintain an appropriate ongoing training and competency programme for individuals who perform a controlled function or the customer-facing function.
      (2) The programme:
      (a) must be relevant, timely and appropriately structured;
      (b) must ensure that individuals who perform a controlled function or the customer-facing function are aware, and have an appropriate understanding, of:
      (i) their roles, responsibilities and obligations;
      (ii) the firm's processes in so far as they apply to each individual's role;
      (iii) any reports that they are required to make; and
      (iv) the sources of information for making the reports; and
      (c) must include policies, procedures, systems and controls on how the firm is to decide whether individuals are competent to perform a controlled function or the customer-facing function.
      (3) In designing its training and competency programme, the firm must consider the following:
      (a) the individuals' differing needs, experience, skills and abilities;
      (b) their differing roles and levels in the firm;
      (c) the degree of supervision over, or independence exercised by, them;
      (d) the availability of information needed for them to perform their roles;
      (e) the nature, scale and complexity of the firm's business, including:
      (i) the products and services it offers or provides, and proposes to offer or provide; and
      (ii) changes to those products and services and to the market;
      (f) the firm's customers;
      (g) the outcome of reviews of the individuals' training and competency;
      (h) any analysis showing areas where training needs to be enhanced;
      (i) the regulatory system, including any recent, or reasonably expected, changes to it.
      (4) In designing the programme, the firm may also consider any other relevant matter.
      Amended by QFCRA RM/2019-4 (as from 1st January 2020).

    • INDI 5.2.2 Training must be maintained and reviewed

      (1) An authorised firm's training and competency programme must include ongoing training to ensure that individuals who perform a controlled function or the customer-facing function:
      (a) maintain their competencies;
      (b) are kept up to date with developments relating to their functions; and
      (c) are trained on any changes to the firm's policies, procedures, systems and controls.
      (2) The firm must, at regular and appropriate intervals, review and evaluate:
      (a) its training and competency programme and training and competency document for quality and effectiveness; and
      (b) those individuals' training needs, to ensure that those needs are met.
      Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI 5.2.3 Training and competency document

      (1) An authorised firm must prepare a document (training and competency document) describing its training and competency programme.
      (2) A firm's training and competency document must include:
      (a) the requirements, characteristics and role of each of the following functions:
      (i) a controlled function for which a rule requires the firm to have an individual approved;
      (ii) any other controlled function that an individual performs for the firm;
      (iii) if the firm has 1 or more individuals who perform the customer-facing function — that function;

      Guidance

      Requirements: what an individual should have to perform the function — for example, a certain level of knowledge, experience and training

      Characteristics: what an individual should be able to do in performing the function — that is, his or her skills (technical and behavioural).

      Role: what the individual is expected to do — for example, the function's duties, responsibilities, reporting lines and position within the firm.
      (b) how the firm is to satisfy itself that each individual who performs a controlled function or the customer-facing function has, and continues to have, the competencies required to perform the function;
      (c) the continuing professional development to be provided for such individuals and the review and evaluation of their training needs;

      Note See rule 5.3.3 (Continuing professional development).
      (d) how the firm is to ensure that it complies, and can demonstrate its compliance, with its training and competency programme;
      (e) how, and in what circumstances, the firm will review the programme and the document, including who is to carry out the review and evaluation and when; and
      (f) how, and in what circumstances, the firm will revise the programme and the document, including who is to approve any revision.
      (3) Revision includes amendment and replacement.
      Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI 5.2.4 Firm must comply with its training and competency programme

      (1) An authorised firm must comply with the requirements and procedures in its training and competency programme and training and competency document as revised from time to time.
      (2) The individual approved to perform the compliance oversight function for an authorised firm:
      (a) must monitor, on an ongoing basis, the firm's compliance with its training and competency programme and training and competency document; and
      (b) must report to the firm's governing body at least once a year about the firm's compliance with that programme and that document.
      Derived from QFCRA RM/2014-5 (as from 1st January 2015)