Blog

New Advisers and the FCA Directory

Graeme Stewart

Graeme Stewart

20 July 2022
Introduction

Since I last wrote in February, we continue to be very busy helping you with all sorts of queries.

One question that has arisen quite often recently, is in respect of the recruitment of a new adviser, who holds a certification function under the Senior Managers & Certification Regime (SM&CR).

Paradigm provides a range of support including a recruitment checklist within the appendices of the Authorisation, Licensing, Supervision and Recruitment chapter of the manual. Here a firm will find step-by-step guidance on the recruitment process, which for certificate function now rests firmly with the firm under the SM&CR.

In addition, any new adviser will require robust supervision under the firm’s Training & Competence (T&C) plan. The firm’s T & C plan should outline the level and frequency of supervision to be applied to the new adviser and the path to be followed to their eventual competence assessment and certification.

The T & C plan should also show Induction process that a new adviser will follow.

Firms seeking guidance will find a risk-based T & C template, (which includes a template induction plan) within the appendices of the Training and Competence chapter of the manual.

The question that has been most frequent recently however is: how, and when do firms record the arrival of a new adviser in the FCA Directory detail pages?

The need to update the FCA Directory on appointment

One of the key objectives of the FCA Directory was to give consumers and professionals the ability to check the details of key individuals working in financial services.

It is therefore important the FCA’s Directory show all the staff within the firm that require certification under the SM&CR.

In the original FCA guidance it was stated that only when adviser had been certified were they to appear within the directory. This was revised in the FCA guide published February 2021, when the FCA stated “A person performing a function requiring qualification should be reported to the FCA as a Directory person even if they are training and are yet to receive a qualification.”

When to add a new adviser to the Directory

Firms are reminded that they should be making relevant changes to the Directory (for example someone starting or ceasing an activity) within 7 business days of that change. Failure to update within that time frame and it is likely that a £250 administration fee will be levied by the FCA to the firm.

How to add a new adviser to the Directory

To add a new adviser to the Directory information, a firm must login to the Connect system and add a Directory Person, via the “start an application” function.

For newly qualified advisers (with no existing IRN number) additional information such as passport and National Insurance numbers will be required.

As Consultants we are asked how to add a newly qualified adviser to the Financial Services Register and we provide the following guidance.

The firm must log onto the Connect system and then choose the “ Start an Application” function. The firm will then choose the Directory Persons option – and from the three options available choose “Add Directory Person(s)”

The Connect system will ask does the individual hold an IRN (Individual Reference Number) and the answer to this question will be “No”  

The system will then ask for information about the Individual and the firm can provide details of the adviser, including either their date of birth and National Insurance Number or Passport details and Country of residence. Paradigm recommends that Date of Birth and National Insurance number are used as passport details can change and this will make it difficult to amend details in the future.

The remaining information would be the same for an experienced adviser, Advisory Activities, Workplace Location and Accreditation

For further information or support you may refer to the FCA User Guide : Adding or amending Directory Persons data for an individual
 

Reading this blog counts towards your CPD!

Click here to add this session to your Paradigm CPD log.


3 August 2022

A new Consumer Duty: the final rules


20 July 2022

New Advisers and the FCA Directory


13 July 2022

Stress test removal should be delayed as we figure out cost-of-living impact


7 July 2022

How our Consultants can help you


4 July 2022

Nobody knows how the housing market will play out


20 June 2022

Eleventh-hour mortgage changes can be rationalised but better management needed


13 June 2022

How the induction process works under SM&CR


9 June 2022

Political change could have real consequences for housing sector


1 June 2022

Consumer Duty: What can firms be doing to prepare?


30 May 2022

Make sure you’re ‘business fit’ before contemplating retirement


25 May 2022

There are few things as prized in our market as ‘service excellence’


18 May 2022

How to recruit under SM&CR


13 May 2022

Deter clients from cancelling protection policies to make savings


5 May 2022

Time won't give us time... but it will help


22 April 2022

How firms should manage conflicts of interest


11 April 2022

Is the GI fair-value pricing message getting across?


11 March 2022

Putting 'Pen to Paper'


11 March 2022

A well-needed healthcare solution


10 March 2022

Post-Brexit advice for clients in EU countries


1 March 2022

Do you regard data as a gold bar, or a lead brick


24 February 2022

We’re a long way from 2021’s mortgage market


15 February 2022

Vulnerable customer policy must sit at the heart of business culture


10 February 2022

Consumer Duty and vulnerable clients


2 February 2022

Ups and downs


17 January 2022

The housing market’s trajectory lies in Boris Johnson’s fate


13 January 2022

Kicking off the year


6 January 2022

It’s difficult to see the advantages of relaxed mortgage affordability


Paradigm

THIS SITE IS FOR PROFESSIONAL INTERMEDIARY USE ONLY AND NOT FOR USE BY THE GENERAL PUBLIC.

APCC Member
Paradigm Consulting is a Member of the Association of Professional Compliance Consultants

Paradigm Consulting is a trading name of Paradigm Partners Ltd
Office address: Paradigm Partners Ltd, Paradigm House, Brooke Court, Wilmslow, Cheshire, SK9 3ND
Paradigm Partners Ltd is registered in England and Wales. No.09902499. Registered Office: As above

Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.

Paradigm Protect is a trading name of Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Paradigm Mortgage Services LLP is registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.