What are FCA Skills, Knowledge and Expertise? - Know Your Compliance Limited

The FCA skills, knowledge and expertise is referenced under the compliance arrangements and procedures section of the authorisation application. It is also relevant to the FCAs training and competence requirements and the Senior Managers and Certification Regime (SMCR).

Those applying for FCA authorisation will need to confirm that they have measures and controls in place for assessing existing and potential employees. For firms already authorised, you must demonstrate the ongoing skills, knowledge and expertise of your employees, especially those performing senior management functions.

Training and Competence

The FCA require consumer credit and financial services businesses to have a regime in place for employee training and competence. This involves assessing existing skills and performing a skills gap analysis. Those working for and within a regulated business must be appropriately qualified and suitable for the role they are performing.

It is also a requirement to carry out frequent skills gap analysis and continued professional development under the Senior Managers Certification Regime. Those assigned to senior management functions must have adequate skills, experience and resources to perform the role efficiently and effectively.

You will want to be recording and evidencing how an individual’s competency is assessed. This includes skills analysis and mapping suitability to a specific role. This should be done alongside learning and development plans, induction programmes and ongoing compliance training.