CPD rules get industry thumbs-up

Industry associations have reacted positively to the latest discussion paper to emerge from the Code Committee process.

Tuesday, January 19th 2010, 9:14PM

Professional Advisers Association chief executive Edward Richards described the Committee's ‘Proposed minimum requirements of continuing professional training' paper as the "least controversial" of the three Code consultation documents produced to date.

Richards said the proposals, released yesterday, provide a "sensible bridge" between industry and government in meeting continuing professional development (CPD) requirements.

He said the proposals would recognise many of the CPD programs already offered by the industry.

Institute of Financial Advisers (IFA) president Lynn McMorran also welcomed the paper saying the organisation's own current standards exceed those proposed by the committee.

McMorran said IFA members were required to earn 50 CPD points over a two-year period compared to the minimum 20 points proposed by the Code Committee.

She said it was encouraging to see that the Committee was supportive of existing industry association CPD programs.

"That could provide an incentive [for advisers] to join industry associations," McMorran said.

Under the proposals, authorised financial advisers (AFAs) would be permitted to spread their annual CPD quota across "unstructured and structured learning".

A minimum of 12 CPD points must be achieved via ‘structured' programs. These include tertiary qualification courses, National Qualification Framework-registered courses plus any other "recognised financial services industry body or professional organisation" conferences and courses.

The Committee has yet to determine the basis for recognising industry bodies to provide CPD programs.

As well, the paper proposes all AFA ongoing education must cover a number of compulsory subjects including: ethics, specific product knowledge, and knowledge of regulation.

Advisers would also be required to produce a professional development plan outlining how they intend to meet the CPD standards. AFAs must also keep a log detailing their CPD activities - including sign-off from providers of structured learning - which would be open to inspection from the Securities Commission at any time.

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