What Does it Mean to be Competent?

The FCA introduced Training and Competency (T&C) into their requirements for firms, to ensure that all staff within business’s are conducting ‘good practice’. This means firms cannot be fully compliant with the FCA’s regulatory objectives without incorporating T&C into their culture and business regime.

So, what is competence according to the FCA?

To quote from their T&C sourcebook… “competence means having the skills, knowledge and expertise needed to discharge the responsibilities of an employee’s role. This includes achieving a good standard of ethical behaviour”.

Competence, under the FCA, can be achieved by what they call the ‘Golden Equation’:
Knowledge + Understanding + Application = Competence.

Knowledge is essentially the theory of all practices, from rules and regulations to the written procedures and knowledge of the insurance products available.

Understanding is knowing why you need to know this information, how it can benefit you and the firm, and be implemented into your workday. Reviewing case studies during your learning would help build that understanding.

Application is putting your knowledge and understanding into practice within your everyday work; coaching and on-the-job training can support you further during this process.

The ‘conscious competence’ learning model outlines four key stages on the journey to competence:

Stage 1 = Unconscious Incompetence. You are unaware of a knowledge or skill deficit or reluctant to acknowledge the value of said knowledge or skills.

Stage 2 = Conscious Incompetence. You are aware that you don’t have the skills and knowledge required to do the job at hand and appreciate the necessity of such skills or knowledge.

Stage 3 = Conscious Competence. This is where knowledge and understanding will come into play. At this stage, you will learn what you need to know and be aware that you know the information from evidence, whether it’s from assessments or feedback from clients/managers, etc. There is no timeframe on when you get to this stage.

Stage 4 = Unconscious Competence. After a certain period, you will have practiced the skills and knowledge so often they essentially become ‘second-nature’, meaning that you are unaware of exactly how much information you know and understand. The only problem with this is that human error is more likely, so keeping up-to-date and constantly learning will limit that risk – but don’t forget, we are guaranteed to make a mistake sometimes, do not put yourself down, take ownership of it and grow from it.

There are many methods through which you can monitor your own and team members competence, whether it’s appraisals, one-to-one meetings, monitoring KPIs (Key Performance Indicators), CPD (Continuous Personal Development) goals, or training requirements. Checking client feedback and workload can help you discover areas that may need to be addressed through training exercises. Observing and providing additional support throughout the workday will also help improve the competence level within the firm.

To review your own training and competence requirements, you can read more about the do’s and don’ts of reflecting on your CPD in our previous article.

The Development Zone can help you meet your training and competency requirements. If you are not already signed up, click here to find out more and request a 14-day free trial.