| VII. Quality Of Personnel |
- Quantity and Quality of Personnel
Senior management must ensure that adequate personnel, both in terms of quantity and quality, are made available not only to distribute each product of the portfolio, but to staff the internal control structure and operate the management information system of the financial intermediary. The need for enhancement in the quality of personnel stems mainly from the increasing rate of change in the markets and the complexity of many products of portfolios, especially derivatives.
Senior management needs to ensure that sufficient personnel are attracted and retained who not only have the necessary high standard of education, experience and technical knowledge to cope with advanced mathematical models, understand the business issues involved and assess objectively the limitations of the models, but who also feel comfortable in an environment of rapid change which needs personnel in all functions to react flexibly and quickly to the requirements of the counterparties.
The institution must ensure that its personnel possess acceptable moral and ethical standards with no compromise on the integrity of the individual.
- Dependence on Key Personnel
Under no circumstances must a situation be permitted to arise, in either the sales area or in the internal control infrastructure, where the financial intermediary is exposed to risk through the actual or possible loss of key personnel, whether through resignation, holidays, sickness or death. There must at all times be adequate cover in terms of the number of personnel and of the skill set required for all trading and internal control duties and functions to be carried on without risk or disruption to the normal dealing and settlement activities of the financial intermediary.
- Training
Senior management should ensure that all personnel undergo continuous training, both academic and "on-the-job", to perform their duties and functions properly.
- Accreditation
Sales personnel shall be required to be licensed or accredited by the appropriate regulatory body or self-regulatory organization to perform such function. Presently, all sales personnel should undergo and pass the Treasury Certified Professional seminar in order to be recognized as a licensed personnel authorized to trade various financial instruments to the public.
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