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Clearing up CPD uncertainty

01 November 2012 Anthony Campher, FPI

After the last board notice announcing the general exemption from CPD, the insurance industry is waiting in anticipation for the Financial Services Board (FSB) to finalise its Continuous Professional Development (CPD) requirements. Financial advisors are eager to learn what these requirements will be – and when they will be implemented.

CPD has been a requirement for recertification of professional membership of the Financial Planning Institute (FPI) for many years. The "old” CPD requirement has been part of the FPI Education Blueprint for more than a decade will be substituted with the "new” CPD policy to coincide with the 2012/2013 CPD cycle.

The professional edge

There is a huge difference between financial planners and advisors who belong to a professional body and those who do not. Professionals want to be up to date with changes in the industry including legislation, advice best practices and economic trends, to name a few.

Without this knowledge it is impossible to provide your clients with "best” advice. This is one of the reasons why consumers will increasingly seek out CFP® professionals – or those on the pathway to CFP® certification – to assist with their financial planning needs.

FPI members do not tackle CPD simply to meet the requirement. They do CPD because it is the right thing to do. It puts them in a position to develop better financial plans, provide better solutions and take corrective action in order to meet their clients’ demanding financial goals.

Applying for an exemption

The initial Board Notice that addressed CPD, BN 106 of 2008 Part 7(3), allowed professional bodies like the FPI to apply for an exemption for its members to meet the prescribed CPD requirements. The FPI submitted such an application.

Although we still await final feedback from the FSB, we believe that the high CPD standards set by the FPI over the years will be recognised and rewarded by way of an exemption. Professional members of the FPI should therefore only have to meet the requirements as per our CPD policy.

FPI CPD sessions are attended by many non-members due to the high quality and educational value offered. We will continue to address the needs of non-members who want to attend our events.

Focussed CPD events

With the increased demand for CPD opportunities, as well as the need for a wider range of topics, the FPI will use one of its subsidiary divisions to deliver CPD events going forward. This focus will ensure that we deliver top quality events together with excellent customer service.

We have recently conducted a survey to determine what the industry needs in terms of continuous education. The survey results will assist us in developing content that will address the development needs of financial planners and advisors throughout South Africa.

Further to this the FPI offers two online CPD initiatives that make it easy for people to earn CPD hours (or points). At least four topics are added to the online course list each month to cover all components of financial planning and advice. More information on these offerings can be found on the FPI website.

Assisting non-members

The FPI will ensure that any CPD event attended by non-members is recognised by the FSB. We will also apply for approval as a CPD provider and ensure that all non-member programmes are recognised by the regulator.

The CPD records of non-members who attend any of our sessions will be updated on a monthly basis – and no additional administration input will be required of either the individual or his / her employer. We will also take the necessary steps to have a number of programmes offered by FPI-accredited CPD providers recognised by the regulator.

Exemptions could be temporary

Despite the general exemption from CPD granted to Financial Service Providers, Key Individuals and Representatives – published in Board Notice 163 of 2012 – the FPI will continue with its CPD plans.

It is not yet clear when the final CPD requirements will be published. Until such time the FPI will play an important role in setting standards and laying the foundation for CPD in the industry.

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