The proposals will introduce a 30 month deadline for individuals to complete all modules of a qualification required for their role.
The proposals will also remove some transitional provisions which allow individuals to operate without formal qualifications, due to the arrangements under their previous regulator.
Further proposals clarify how individuals carrying out approved persons roles should demonstrate a good standard of ethical behaviour.
They will be expected to act in the interests of their client, avoiding consumer detriment and taking responsibility for their own level of competence.
The proposals seek to increase standards of professionalism across the industry, complementing the Retail Distribution Review plans and rules that are already in place for investment advice.
Sheila Nicoll, FSA director of conduct policy said: “Competence and ethics are key elements of our regulatory regime and we have increased our scrutiny of individuals working in the financial services industry over the last few years.
“Ultimately it is in a firm’s commercial interest to recruit, train and retain good quality individuals but regulation ensures that standards of competence and ethics are maintained at an appropriate level.
“We have designed these proposals to enhance consumer protection by strengthening our competence and approved persons requirements. We want to see firms operating robust training and competence schemes and individuals demonstrating good standards of ethical behaviour.”
The FSA plans to publish lists of qualifications that meet FSA requirements in their handbook.
