Qualification Of Employees: The Characteristics Of A Good Employee

Posted in Markets Compliance on January 5, 2024
Qualification Of Employees

The qualification of employees. In an increasingly digital environment for financial products and services with the potential to support greater financial inclusion and inclusive growth, the need for effective financial consumer protection is more important than ever. At the same time, the policies and approaches developed and adopted by financial consumer protection authorities need to evolve and adapt in line with the environment.

Qualification Of Employees

Qualification Of Employees

Financial consumer protection should be an integral part of the legal, regulatory and supervisory framework, and should reflect the global market and regulatory developments within the financial sector. Companies are required to hire competent, and skilled employees who deal with the customers’ funds. Employees’ due diligence process should be strong, and only relevant, and experienced employees should be hired and given the role to perform the investment activities.

Markets compliance regulations reflect the characteristics, type, and variety of the financial products, and consumers, their rights and responsibilities and be responsive to new products, designs, technologies, and delivery mechanisms. To ensure that regulatory requirements comply with the company as part of control activities must hire capable, and competent staff, who understand, and apply the market regulatory provisions.

Characteristics Of Suitable Employees

Suitable employees may belong to the investment banks, brokerage houses, stock market, or similar organizations, where they must have performed the roles related to the investments. Employees must have sound financial knowledge, and it shall be preferred to hire professionals who possess investment and risk management-related qualifications.

The remuneration structure for the employees doing the sale of securities, or shares, should be designed to encourage responsible business conduct, fair treatment of consumers, and avoid conflicts of interest. The remuneration structure should be disclosed to the customers where appropriate, such as when potential conflicts of interest cannot be managed or avoided.

Why Do Employees Need To Be Hired?

The employees to be hired to deal with the customers or clients are required to possess information about the securities and the companies to which the securities belong to. The employees should be skilled to identify and understand the audited financial statements, financial data, and company’s business, and financial projections or plans of the companies.

The primary goal is the disclosure of important financial information to potential clients or investors, to make them able to take informed decisions. Regulators require that the information to be provided must be accurate, and reliable. The publicly available information that is available from reliable sources, must be used by the employees, to educate the potential and existing investors about the securities. Making excessive claims about the securities, and shares, without any reasonable justification is strictly prohibited.

The Top Skills Of A Good Employee

Businesses want to hire and retain the best employees in their field, but what does it mean to be a ‘good employee,’ and why is it important to look for them? Most human resources (HR) managers understand how difficult it is to find good employees; candidates either lack certain skills or will not fit in with the company culture.1 Business owners frequently focus solely on technical skills and fail to assess the qualities and characteristics that make up the ideal employee. This could have a negative impact on culture, productivity, and even training efforts.

Whatever the industry or nature of the job, there are certain key qualities that every hiring manager should look for if they want their employees to succeed in business.

Final Thoughts

Businesses all over the world are experiencing skill shortages. In the United Kingdom alone, 23% of employees lack basic digital skills, despite the fact that they are required for nearly 90% of all new jobs.18 One possible solution is to train existing employees to become proficient in new skills – both hard and soft – and thus create ‘good employees. This also implies that a new approach to recruiting is required. Hiring employees with the potential to be more skilled and who exhibit some of the qualities listed above could be an effective strategy. Given the likelihood that top talent will become increasingly scarce and in demand, training may be the best and most practical solution.