The new sheriff in town is leading the FASEA CPD train across the land. With financial adviser standards kicking up dust as they hasten towards the next milestone, has your organisation hitched a wagon and are all your advisers on board?
In light of the Royal Commission into Financial Services, CPD will be one of the major attributes that defines the professional status of licensees.
FASEA has released its final Continuing Professional Development Policy, which states that a responsible Financial Services Advice Licensee is required to support its relevant providers in their undertaking and recording of CPD.
FASEA CPD requirements refresher
As we’ve covered in our previous blog, Navigating the CPD Frontier:
- All FASEA-supervised licensees must publish their CPD policy by 31 March 2019, readily accessible for all their advisers.
- Relevant providers must complete 40 hours of CPD each year, where 70% needs to be licensee approved and mapped to FASEA CPD categories.
- Providers must maintain continuous, up to date and accurate records of their CPD activities and keep records for 7 years.
- FASEA encourages a digital solution to manage CPD activities to ensure portability and accountability.
- FASEA CPD requirements are also aligned with Tax Practitioners Board requirements.
Why care about getting your FASEA CPD strategy right?
CPD is a commitment by licensees to ensure authorised providers maintain currency of technical knowledge, regulatory obligations and standards of professional conduct.
Why not go a step further? Turn CPD into an opportunity and competitive differentiator by expanding the knowledge and abilities of professionals.
Recent research by Linkedin found that time remained the biggest barrier to learning, yet 94% of employees would stay at a company longer if it invested in their career development.
When it comes to CPD, managers should engage advisers and align CPD with their development aspirations and most importantly provide them the time to complete.
Move away from ‘tick a box’ CPD and realise the opportunity and mutually beneficial outcome that quality CPD brings for the licensee and its relevant providers. Link CPD with career progression and performance indicators and encourage providers to improve their skillsets and deliver in their role brilliantly.
In a nutshell, don’t get distracted and overwhelmed by the technicalities of FASEA’s requirements. Learn to view CPD as a form of knowledge and skills nurturing that ensures advisers can:
- review and improve their performance
- receive appropriate recognition
- feel supported, motivated and engaged
- believe that they own their role, and
- be inspired by thoughtful leadership.
Transition - setting your CPD period
All licensees’ first CPD year starts after 1 January 2019; therefore, all relevant providers must complete 40 CPD points by 31 December 2019.
If a licensee’s CPD period does not align with the calendar year, the licensee will need to pro-rata the hours for the period from 1 January 2019 to the commencement of their CPD year.
For this reason, it makes sense for licensees to align their CPD year to the calendar year. It will ultimately allow for a much smoother transition into FASEA land. The quicker licensees meet their milestones, the sooner any FASEA-related changes will become business as usual.
How can we help?
- We have created a FASEA Adviser CPD training plan offered on our online learning platform. We can assist in setting up and maintaining your CPD policy to ensure it adheres to FASEA requirements.
- At FEP our CPD topics are contextualised; they are practice-based and focus on how individual proficiency boosts organisational capability.
- We have a wealth of in-house financial services know-how supported by the proven skills of our experienced practitioner network.
As the saying goes, procrastination is the thief of time. With the right mindset – and only a little more effort than what you’re putting in now – you can make your organisation’s trip to meeting FASEA’s CPD requirements a worthwhile journey to a professional development oasis.
FASEA's Standards Summary (on FASEA website home page)