The Chartered Insurance Institute believe that vetting individuals dealing with customers is the duty of the FSA, not the firm, and this decision to pass the responsibility to firms will lead to a rise in misselling and increased costs levied on firms through the Financial Services Compensation Scheme.
The consultation period closed on October 31st for the FSA to consider the responses. A policy statement is due in the New Year.
Our view
Any authorised and regulated firm 'worth its salt' and with a strong desire to continue trading will vet all potential employees anyway. We do not see this as a burden more common sense.