- Posted by CTB
- On November 3, 2021
Continuous Professional Development (CPD) for those in the financial services industry is as any activity that is accredited by a Professional Body, which is allocated an hour or part thereof by the Professional Body, that is verifiable. It excludes an activity performed towards a qualification and product specific training. The CPD cycle occurs for 12 months every year, beginning on the 1st of June and ends on the 31st of May. We are almost half-way through the current CPD cycle. This means that any representative that is required to complete CPD activities must complete the minimum number of hours of CPD activities by the 31st of May 2022.
So, who is required to complete CPD activities? All Key Individuals (KIs) and any representative who is no longer under supervision, for all or some of the subcategories for which he or she is appointed, is required to complete the applicable minimum amount of CPD activities, for the subcategories for which he or she is no longer under supervision. However, there are certain representatives that are automatically exempted from complying with the CPD requirements. Those are representatives that are only appointed to render financial services in respect of Long-term Insurance subcategory A and/or Friendly Society Benefits. Similarly, any representative of a Category I Financial Services Provider (FSP) is not required to complete CPD hours if he or she is only appointed to render a financial service in respect of a Tier 2 financial product and/ or render an intermediary service in respect of a Tier 1 financial product.
An FSP must ensure that type and combination of CPD activities undertaken by its representatives comply with Board Notice 194 of 2017. The following is a helpful guideline in determining the type and combination of CPD activities that should be undertaken:
- These activities must be relevant to the functions and role of the FSP, KIs and representatives;
- It must contribute to the skills, knowledge, expertise and professional and ethical standards of the FSP, KIs and representatives;
- The activities must address any identified needs and gaps in the technical knowledge of the FSP, key individuals and representatives. Which means a needs/gap analysis should be done at the beginning of each cycle to determine these gaps.
- It should also address the needs and gaps in the generic knowledge and understanding of the environment in which the financial services is rendered and its applicable laws.
- Lastly, the changing internal and external conditions relevant to the classes and subclasses of business, the category of financial services and the financial products for which the representative is appointed and the FSP is approved for, must be taken into account in respect of the type and combination of CPD activities undertaken.
The Compliance ToolBox offers some activities that are accredited with CPD points and will be developing more training to help you achieve those CPD hours! The Kotive system also provides for a Competence and CPD register that allows an FSP to keep up with its record-keeping requirements, therefore making FSPs lives easier in keeping track of the type of CPD activities and the number of CPD hours completed by KIs and representatives in every CPD cycle.