The FSA has published proposals to strengthen its requirements on competence for individuals carrying out retail activities, while placing more emphasis on standards of ethical behaviour.

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 look to clarify how individuals carrying out approved persons roles should demonstrate a good standard of ethical behaviour. The FSA says they will be expected to act in the interests of their client, avoiding consumer detriment and taking responsibility for their own level of competence.

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.