Compliance E-Learning: A Brief Guide
Posted on 3 Feb 2021
What is Compliance Training?
Compliance training for members of staff is a regulatory obligation; it intends to educate and inform employees on laws and regulations that apply to them due to their job responsibilities or industry. Employees must have the knowledge, skill and expertise to carry out their role and responsibilities competently, they will also be expected to achieve a good standard of ethical behaviour.
Who Needs Compliance Training?
Compliance training is a regulatory obligation for all FCA and PRA Authorised firms, therefore all entities which fall within the UK's current regulatory framework, the Financial Services and Markets Act 2000 ("FSMA"). Within these organisations, all certified persons would benefit from compliance training, especially those performing a Senior Management Function ("SMF").
Some training such as GDPR, PA Dealing, Equality and Diversity, Business Ethics and Integrity is good business practice for all employees. Regulations such as SM&CR and MiFID, bring about the need for more specified training modules. As of 1st April 2021, firms must have undertaken the first assessment of the fitness and proprietary of their Certified Persons, thus SM&CR & Conduct Rules modules are very relevant and necessary for companies to undertake.
Compliance training should cover all aspects of Money Laundering as this now carries legal obligations for people in the financial services industry.
Which Training Modules are Most Necessary for my companies activities?
Type of Firm
|Relevant to all Firms||GDPR; SM&CR; Conduct Rules; Business Ethics and Integrity; Equality and Diversity; Information Security; Records Management; FCA Principles for Business; Electronic Communications; Modern Slavery; Treating Customers Fairly; Whistleblowing.|
|Investment Firms - Asset Management; Wholesale Investment; Retail Investment||AIFM Regulations; Anti-Bribery; Anti-Money Laundering; Bribery Prevention; Market Abuse; Financial Integrity; Fraud Prevention; Financial Crime Prevention; Whistleblowing; Markets in Financial Instruments Directive II; UCITS; CASS – Client Money & Client Assets; Conflicts of interest in Asset Management.|
|Payment Services & e-money Firms||Payment Services Regulation; PCI Data Security Standard; Fraud Prevention; Complaints Handling.|
|Consumer Credit Firms||Treating Customers Fairly; CONC – Consumer Credit Sourcebook; Complaints Handling; Fraud Prevention.|
How often is Compliance Training Required?
As stated in the FCA Handbook, “a firm must keep an up-to-date record of the continued professional training or development by each employee in each 12-month period”. This is to ensure persons at the firm are fit and proper. Training should take account of matters, such as:
- Technical knowledge and its application
- Skills and expertise
- Changes in market legislation and regulation
Firms should also assess their employees' needs from the outset and throughout especially if their role changes. As well as this, firms should regularly review the quality and effectiveness of such training.
Why is Compliance Training Necessary?
Effective compliance training helps to prevent inadequate conduct in the workplace and is required in maintaining employees’ fitness and propriety. Laven does this by applying real-world situations to our training, we help your staff learn, and adapt this into their everyday work.
It is vital that firms do not neglect regular training, otherwise, they could leave themselves vulnerable and not able to prove competence to regulatory authorities. This happened when, in March 2019, the FCA identified inadequate training in its decision to fine The Carphone Warehouse £29 million for breaching two of the FCA’s Principles of Business. The FCA found that their training was inadequate to equip staff sufficiently to give suitable advice to customers. AML training is now mandatory for all regulated Firms
The FCA’s Take on Training and Compliance
The FCA’s Principles, found within the FCA handbook, are 11 principles of good regulation that all business should adhere to in order to be successful and conduct business in the correct manner. Three of these Principles are relevant to training and competence:
- Skill, care and diligence – A firm must conduct its business with due skill, care and diligence. In relation to a firm’s employees, this means providing appropriate training and assessing competence on a continuing basis.
- Management and control – A firm must take reasonable care to organise and control its affairs reasonably and effectively, with adequate risk management systems. This rule requires a firm to make proper arrangements for employees who are involved with regulated activities to achieve, maintain and enhance competence in the workplace and in their roles.
- Customers’ interests – A firm must pay due regard to the interests of its customers and treat them fairly. Treating customers fairly is highly regarded by the FCA and they consider good training and competence arrangements as essential towards a firm’s compliance.
Certificated Online Training
Laven’s online training modules are all CPD Accredited. Upon completion of each module, the user will receive a digital certificate of their accomplishment. CPD Accredited means the training has surpassed the required Continuous Professional Development standards, ensuring its integrity and quality.
Most Commonly Needed Compliance Training Modules
- Anti-Money Laundering & Counter-Terrorist Financing
- Market Abuse Regulation
- Conduct Rules
Benefits of Laven Online Training
- Over 60 modules to choose from – covering all your training needs.
- Customisable modules – Imprint your personality onto the modules by including your company name, logo, colours and even edit the content and questions (within reason) to make them as relevant to your business as possible.
- Dashboard visibility – You will have an optimised dashboard, allowing visibility to monitor assignment, progress, completion, and certification of modules.
- Training at your convenience – Start, stop, and resume your training modules as and when you like, with your progress being saved throughout.
- Set a completion deadline for your employee’s modules - An automated email can be sent to your employees reminding them of the deadline date, saving you the time and hassle of chasing them.