The Financial Services Authority (FSA) is demanding more ethical behaviour in financial services, including the selling of mortgages, as a way of increasing standards of professionalism across the industry.

It wants an increase in standards of behaviour in authorised firms, and is introducing a new 30-month deadline for individuals who want to complete all their modules of a qualification required for their role.

In a consultation paper, Competence and Ethics, the FSA has proposed that some transitional provisions which allow individuals to operate without formal qualifications are removed.

They are also recommending that individuals that carry out approved persons roles should be able to demonstrate a high standard of ethical behaviour in terms of acting in the interests of their client, avoiding consumer detriment and taking responsibility for their own level of competence.

The proposals would be complementary to the plans of the Retail Distribution Review, as well as current rules for investment advice .

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.”

“We have designed these proposals to enhance consumer protection by strengthening our competence and approved persons requirements. We want to see firms operating robust training and competence schemes and individuals demonstrating good standards of ethical behaviour.”

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