Secondary

Questions

CPD – FSCA answers your questions about non-compliance

It is critical for everyone to familiarise themselves with the answers to some very relevant and important questions.

Let’s focus on a few responses from the FSCA:

What happens if the FSP/ key individual / representative do not meet the CPD hour requirement by the end of a CPD cycle?

Non-compliance with any competence requirement will result in regulatory action being taken against the FSP, key individual and/or representative. The same principle applies to non-compliance with the CPD requirements.

If it is clear that a representative will not meet the CPD requirements by the end of a CPD cycle, the FSP can pro-actively move the representative to a role that does not require compliance with the CPD requirements prior to the expiry of the CPD cycle and remove the representative from its representative register. However, if a representative is already non-compliant with the CPD requirements, the FSP must debar the representative.

If a representative didn’t comply with the CPD requirements by the end of a CPD cycle, and was required to stop rendering any financial services and was removed from the central representative register before they became non-compliant – must the person first complete the required CPD?

Yes. The person must first meet the CPD requirements applicable to him/her before he/she can be registered as a representative again.

If the FSP moves the representative to another role and removes him/her from its representative register before they are non-compliant, then the person can be appointed as a representative again and the representative register can be updated when they become compliant.

How must the CPD activities be recorded?

The CPD activities must be recorded in the competence register of the FSP within 30 days after the expiry of the CPD cycle. Section 32(3) of the Fit and Proper Requirements sets out the duties on the FSP in this regard. Guidance on the form and manner on which CPD reporting to the FSCA must be conducted will be provided later.

(From the Q&A as published in FSCA Communication 2 of 2019).

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