Moonstone: CPD – How will this impact on you?

Your perception of whether the glass is half full or half empty will be sorely tested, not just over the next few months, but quite possibly for as long as you are in the industry. For many, passing the level 1 Regulatory Examinations (REs) is the main

The fact that Continuous Professional Development (CPD) follows after completion of the level 2 REs is even further from the minds of most FSPs. This is unfortunate, particularly in view of the fact that there is currently a discussion document available for comment which few will take notice of, yet they will have to live with the consequences thereof for many years to come.

The reason why we elected to touch on this matter today, is purely to assist forward thinking readers in planning for a future that will differ vastly from the world as we know it today.

The FSB discussion paper sets out the purpose of CPD as follows:

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.

On the bright side, one must bear in mind that the level 2 REs, being product focussed, will be based on much more familiar ground than the level 1 exams.

Similarly, the CPD will in most instances merely be an extension of on-going training and development which most of us are currently involved in any way. The difference is that there will now be standards and measurement, with record-keeping required to prove compliance with these standards.

In January, many of us take time to plan the year ahead. It may be wise to look at what changed in the past year or two, and what is likely to change over the next few years.

In my days in the corporate environment, I was subjected to a number of transfers, which of course entailed house hunting in the new area. It was amazing to see how people would transform a normal, functional house into a contraption which resembled a maze, simply by just adding on without looking at the whole design.

I suspect this also happens in some practices. We react to new requirements, but often fail to integrate this into the whole, leaving us with a huge number of tasks which could, with some careful planning, either be combined with current workflows, or outsourced.

If you think outsourcing is expensive, you should compare this with the cost of your services on an hourly basis. Bear in mind that you not only purchase the service, but also the knowledge required. The two hours or so that you would have spent on that function can now be spent on income-generating activities, doubling your value to the practice in that time.

In previous articles, we discussed joining forces with other FSPs to share infrastructure and logistics while keeping one’s own identity and independence.

Working harder and smarter will help you maintain a positive perception of the level of the water in the glass.