FINANCIAL SERVICES AUTHORITY TRAINING REQUIREMENTS AND CONSUMER PROTECTION

That this House welcomes the decision of the Financial Services Authority (FSA) to undertake a thorough review of the current Training and Competence regulations covering those who sell financial services; recalls that one of the statutory principles of the FSA is to secure an appropriate degree of consumer protection and that appropriate examination and training to ensure competent salespeople play a major contribution in promoting that principle; is concerned that any proposal to reduce Training and Competence requirements could lead to a long-term decline in the quality of advice and the appropriateness of products sold; supports a risk-based approach which maintains the need for statutory examination requirements alongside measures to improve the capability of consumers to make informed decisions about suitable products; and urges the Government, the FSA and the financial services industry to maintain and build on current qualification and training requirements.