Why is T&C under the spotlight again?

Consumer Duty hasn’t introduced a brand-new concept of competence, but it has raised expectations.

The FCA isn’t interested in whether advisers have completed the right number of CPD hours. It wants firms to evidence that:

• Advisers are competent for the role they actually perform

• Training is relevant, targeted and ongoing

• Supervision is effective, proportionate and meaningful

• Issues lead to learning and improvement, not just file notes

In other words, T&C is a central part of how firms demonstrate good outcomes for clients.

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T&C frameworks are stuck in the past

In our experience, most T&C weaknesses don’t come from negligence or bad intent.  

The problems we see now come from frameworks that were designed for a different regulatory era and then left largely unchanged for years at a time.

Common signs include:

• T&C focused on minimum compliance, not development

• Generic CPD that looks the same for every adviser

• Annual observations that feel rushed or formulaic

• Supervisors unclear on what “good” actually looks like

• Evidence scattered across systems, spreadsheets and emails

None of these feels catastrophic individually, but collectively they create risk and uncertainty.

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What “good” T&C actually looks like today

So what does an effective, Consumer Duty–ready T&C framework look like in practice?

While no two firms are identical, strong frameworks tend to share the same core characteristics.

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1. Clear, role-specific competence standards

Good T&C starts with clarity.

Advisers need to know:

• What competence looks like for their role

• How it’s assessed

• What’s expected as their role evolves

This goes beyond generic job titles and recognises differences in advice types, client complexity and risk exposure.

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2. Ongoing supervision (not annual sign-off!)

Competence isn’t something an adviser achieves once and keeps forever.

Effective frameworks:

• Treat supervision as a continuous process

• Scale oversight based on experience, risk and performance

• Use observations as a coaching opportunity, not a tick-box exercise

This is especially important where firms are growing, onboarding new advisers or expanding services.

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3. CPD that develops capability

Under Consumer Duty, CPD needs to be more than attendance records.

Strong T&C frameworks ensure training is:

• Relevant to the adviser’s advice activities

• Linked to identified risks, gaps or business changes

• Evidenced in a way that shows learning — not just hours completed

The focus shifts from ticking boxes to asking “Did it make a difference?”

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4. Competent supervisors with real oversight

One of the most overlooked areas of T&C is supervisor competence.

Good frameworks make it clear:

• Why a supervisor is competent to supervise

• How their performance is monitored

• What support they receive themselves

Without this, even well-designed T&C structures struggle in practice.

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5. Evidence that stands up to scrutiny

Good T&C is defensible.

If the FCA asked you to demonstrate adviser competence tomorrow, would you be able to:

• Clearly explain your framework?

• Show how issues feed into training?

• Evidence ongoing assessment — calmly and confidently?

If the answer isn’t an emphatic “yes,” that’s a warning sign.

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A quick sense-check: how does your T&C compare?

Ask yourself honestly:

• Do advisers understand what “good” looks like in your firm?

• Is supervision proactive or reactive?

• Would a new adviser experience structured development, or figure it out as they go?

• Are you confident your T&C framework reflects how your business operates today?

If any of those questions cause hesitation, you’re not alone, but positive compliance is on the horizon.  

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How does compliance support makes the difference with T&C?

Many firms assume T&C shortcomings are internal failing, but we find they’re often a reflection of the support model behind the scenes.

Generic compliance support can struggle to:

• Adapt T&C frameworks as firms evolve

• Provide practical guidance on evidencing competence

• Support supervisors in their role

• Translate regulatory expectations into workable processes

Modern compliance support helps firms stay on the right side of the regulator, and gives them confidence in how their people are developed and supervised.

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Final thought

A strong Training & Competency framework can instil the confidence to say:

“We know our advisers are competent, we know how we evidence it, and we know it supports good outcomes for clients.”

Does your current framework get you there? If not, taking a fresh look is a sensible next step, and a second opinion could make all the difference.  

Our expert team is always on hand to discuss all aspects of compliance, including T&C – and we love to chat, so get in touch today to get started.  

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