On 24 July 2018, the Financial Adviser Standards and Ethics Authority (FASEA) released Consultation Paper 6: Continuing Professional Development (CPD).
The consultation paper provides guidance on the Professional Development Program that FASEA expects all financial advisers maintain – including the minimum number of hours devoted to completing CPD – as well as clarifying the Licensee’s obligations and how CPD will be accredited.
The consultation paper sets out the responsibilities, due to commence from 1 January 2019, as follows:
Proposed adviser responsibilities
An hours-based system of CPD calculation has been adopted by FASEA “to encourage a wide variety of education activities within the required competencies and professionalism”. Under FASEA’s proposed standard, financial advisers must complete at least 50 hours of CPD activity in each CPD Year, provided:
Advisers must also:
FASEA has also proposed that advisers may maintain on a continuing basis a Professional Development Plan that:
FASEA has sought feedback on whether it should provide resources and templates, such as a CPD Activity Report as a guide for recording CPD completion and a resource on developing a Professional Development Plan.
FASEA says that “education that is measurable, appropriately assessed and leads to further qualification outcomes for participants is preferred because it more likely provides structured and independent results for the participant’s work and training records.” FASEA proposes that Licensees and advisers may consider the following types of CPD be undertaken.
a. Formal relevant education (provided by a FASEA-approved Education Provider) may contribute – to a maximum of 25 CPD hours per year – to the CPD requirement including:
Proposed Licensee responsibilities
FASEA proposes that each Licensee must maintain and publish a CPD policy that its authorised advisers adhere to and which covers the Licensee’s:
FASEA says that it does not propose to accredit / approve CPD activities or providers for CPD but instead will rely on Licensees’ self-assessment that at least 70% of CPD approved for each adviser is consistent with the Licensee’s CPD policy and based on FASEA guidelines.
Feedback
FASEA welcomes feedback and submissions to assist in finalising the development of the CPD requirements. Submissions can be directed to consultation@fasea.gov.au by 5pm 31 August 2018.
Should you have any queries in relation to the CPD requirements please contact education@cpal.com.au or alternatively contact your local Professional Standards Consultant.