“I am authorised for Long-term Insurance sub-category B1, B2 and C as well as a Participative Interest in Collective Investment Schemes. What are the minimum CPD hours I have to obtain?”
This question, recently received from an experienced campaigner, led to this article being revamped to assist you with complying in time.
With the annual deadline for acquiring Continuous Professional Development (CPD) hours looming, most FSPs, key individuals and representatives should be doing a few calculations to check if they will be on par on 31 May 2019. Yes, the annual CPD cycle ends on 31 May 2019, just over three months away.
But what is the purpose and benefits of CPD again? Who needs to obtain CPD hours?
Let’s look at the basic questions and answers again:
In line with its focus on outcomes based regulation, the FSCA introduced lifetime learning as way to enhance the image of financial advisers as professionals.
What is CPD?
Continuous Professional Development (CPD) is a lifelong learning process, where financial services professionals systematically engage in activities that maintain abilities, skills and knowledge required for their specific areas of expertise.
In terms of Board Notice 194 of 2017, regulatory (FSCA) CPD activities should be relevant to the functions and roles you perform, and should:
- contribute to your skill, knowledge, expertise and professional and ethical standards required
- address any identified needs or gaps in your technical, generic and legal knowledge and
- adequately take into account changing conditions relevant to the financial products for which you are authorized.
What is a ‘CPD activity’?
A “CPD activity” is a verifiable activity that is accredited by a professional body who also allocates an hourly value or a part thereof to the activity. Activities performed towards a qualification and “product specific training” does not qualify for CPD points, but “class of business” training does, in most instances.
By when must I do this?
In terms of the new Fit & Proper requirements advisors are obliged to perform CPD activities during a specified CPD cycle, which is a period of 12 months commencing on 1 June of every year and ending 31 May of the following year. The first cycle started on 1 June 2018, which means that you only have a few months left to comply with this requirement. Provision is also made for proportionate CPD requirements for those who become liable during this cycle.
How many hours of CPD must I complete?
This will depend on the number of classes and subclasses of business you are registered for. For instance, if you do collective investments and pension benefits, or personal and commercial lines of business, you will need to do 18 hours of CPD.
|If you render financial services for…||Then you must complete a minimum of…|
|a single subclass of business within a single class of business||six hours of CPD activities per CPD cycle|
|more than one subclass of business within a single class of business||12 hours of CPD activities per CPD cycle|
|more than one class of business||18 hours of CPD activities per CPD cycle|
Who provides CPD training?
Please note that all CPD activities, as indicated above, should be accredited by a professional body. Please make 100% sure of this when deciding on a provider, or you could be up the creek without a paddle when the final bell tolls.
We strongly advise you to study the actual details on CPD contained in the Determination, which we have extracted for your ease of reference.
The answer to our introductory questions is “18 hours” – why? The representative is approved for more than one class of business.
Hopefully, you have been a good girl or boy, and only need to round off the final hour or two in the last few months.
If not, we suggest you urgently read the MBSE frequently asked questions document, linked below, and get to work straight away.
Click here to access a FAQ document as well as information on the Moonstone CPD offerings.