The problem of employees failing to demonstrate the required level of competency can be a difficult one for brokers. To deal with the issue within the constraints of employment law and the FSA's rules is not a straightforward matter.

The employee may be a good staff member, who is simply in the wrong role. Or he may find it difficult to demonstrate competence in traditional ways, such as exams. As Elizabeth Mills explains the matter needs to be handled sensitively. Employers should consider additional training or changing the employees' role. Disciplinary action and, ultimately dismissal, should be a last resort.

Handling the matter in this way will help to retain good staff while ensuring the firm remains compliant. It also reduces the chances of a later claim from an employee.

Michael Faulkner

If you have received a 'minded to authorise' letter, email: