How to get your CPD house in order

Part one of our two-part blog series looked at the ‘why’, ‘what’ and ‘when’ of the new rules.

In part two, we’ll chat about the ‘how’ to help you get your compliance act together and give you tips on what you should be looking for in a CPD training solution.

A quick refresher

The Financial Adviser Standards and Ethics Authority (FASEA) is now in charge of all things CPD and has created a compulsory CPD standard for financial advisers. This includes a set of requirements that must be met by the thousands of ‘relevant providers’ out there in the financial advice world.

In short, this means providers must…

• Undertake a minimum of 40 hours CPD each year, mapped to FASEA study categories, of which 70 per cent must be approved by the licensee
• Have a CPD plan in place by 31 March 2019
• Keep an accurate record of their CPD and hold onto it for at least seven years – bear in mind that FASEA encourages a digital solution that can track CPD activities while providing portability and accountability

And… licensees don’t get off scot-free, as the onus is on them to publish their CPD policy by 31 March 2019.

The how

As you know, no two financial plans are alike, and neither are the education requirements of individual advice providers, so you’ll need to consider the different types of CPD on offer in the market and find a solution that matches the specific needs of your organisation. Let’s check out the types of CPD available, based on FASEA’s CPD standard.

• Formal relevant education (provided by an education provider) to a maximum of 30 hours per year. This includes any formal study towards qualifications and designations relevant to the role of the adviser, such as degree programs. Note that an adviser already undertaking some kind of formal education will only need to log 10 extra hours of CPD to reach their 40 hour minimum.
• Non-formal education includes study towards the achievement of relevant professional designations like CFP accreditation; education to meet the requirements of specialised areas of financial advice (think Aged Care or SMSFs); and education around specific and relevant financial products, for example, credit products.
• Other CPD as approved by the licensee may include sessions/workshops such as conferences, professional development days and update sessions; professional and technical reading can also be included, but only up to a maximum of four hours per year.

CPD approval

FASEA won’t be accrediting CPD activities, rather it has proposed a self-assessment approach to CPD accreditation. In assessing CPD, it’s important to remember that FASEA emphasises that licensees should carefully consider the level of expertise of their provider.

Taking the plunge

Of course, CPD is more than just a box-ticking, compliance exercise and we shouldn’t lose sight of why FASEA has been set up in the first place – to overcome perceived gaps in the skills and knowledge of financial advisers, particularly in relation to ethical behaviour. To this end, you should seek out learning that truly encourages an ethical workplace culture, by fostering advisers who live and work by this ethos.

• The learning itself must be engaging, informative, current and, most importantly, relevant in a rapidly changing regulatory and technological landscape
• Look for a one-stop management solution that offers customised and detailed reporting, and monitors both individual and team performance
• Be sure your provider has a robust CPD library of responsive online content that maps to FASEA categories to make your CPD planning seamless

Janison have the runs on the board when it comes to developing L&D solutions for the financial services sector. We set the benchmark in understanding the industry, the regulatory environment and above all, the needs of adult learners.

Now is the time to incorporate effective CPD into your every day and not just make a mad scramble for the finish line when your CPD year is almost up. For more information and to discuss your organisation’s learning needs, contact us today.