An overview of the FSB’s proposals on continuous professional development, or CPD. The draft is available on the FSB website, as well as on the Moonstone website.
We look at why this ongoing learning process will be introduced. The following extract comes from the draft proposals posted by the FSB on its website.
PURPOSES OF CPD
Subject to Part VII of the Determination of Fit and Proper Requirements, 2008, CPD is applicable to FSPs (who are sole proprietors), key individuals and representatives. The purposes of Continuous Professional Development are—
(1) to ensure that FSPs (who are sole proprietors), key individuals and representatives develop and maintain professional competence in order to provide financial services of high quality in the public interest that will support the professionalisation of the financial services industry;
(2) to ensure that FSPs (who are sole proprietors), key individual and representative understand that the primary responsibility for competence vests in the individual, and that they have an obligation to develop and maintain their professional competence, relevant to the nature of their work and professional responsibilities; and
(3) to assist FSPs (who are sole proprietors), key individuals and representatives to render financial services with due care, competence and diligence and subject to a continuing duty to maintain knowledge and skill at a level required to ensure that a client receives competent professional service based on up-to-date developments in legislation, industry practice and development in respect of specific Categories and subcategories.
Two important definitions provide more clarity on the above:
“continuous professional development” or “CPD” means a process of learning and development, with the aim to enable an FSP (who is a sole proprietor), key individual or representative to maintain capabilities to perform competently within the Categories or subcategories they render financial services in;
“CPD activities” for the purpose of this Determination, include but is not limited to:
(a) Verifiable attendance of workshops, courses, conferences and seminars;
(b) studies leading to formal assessments, e.g. additional recognised qualification(s), which may be through private study, distance learning or attendance at formal courses;
(c) structured self-study programmes, including web-based, computer-based or paper-based delivery, where completion is verifiable;
(d) verified articles/papers authored for publication, within the relevant CPD period, on topics relevant to the financial services industry, published in newspapers, magazines or peer reviewed journals;
(e) authored or co-authored books or chapters of books on topics that are relevant to the financial services industry or part thereof where the writing took place within the current CPD period; or
(f) verifiable delivery of presentations/ lectures or participation in interviews on topics relevant to the financial services industry or part thereof at seminars, conferences, radio programmes, television programmes or workshops, but excludes radio or televised advertisements.
In the next part (2 of 3) we look more closely at who can apply for accreditation as a CPD provider, and how this will be tracked. This will be posted on Friday