CPD is an activity that is required by the FAIS Act to ensure all Representatives keep their skills up to date and relevant. Below we have unpacked the most frequently asked questions on CPD compliance with its answers.
1. DOES EVERYONE HAVE TO DO CPD?
No. Representatives of Category 1 FSPs who ONLY work in the Long-Term Insurance subcategory A and/or Friendly Society benefits, and those who work ONLY in Tier 2 products, and/or those who ONLY render intermediary services in Tier 1 products do not have to do CPD activities. If you give advice in Tier 1 financial products, you have to engage in CPD activities.
2. HOW MANY CPD ACTIVITIES DO I HAVE TO DO?
The minimum requirements depend on the Classes of Business and sub-classes that you work in:
2.1 One subclass only, in a single Class, requires 6 hours CPD during a CPD cycle;
2.2 Two or more subclasses, in a single Class, require 12 hours CPD during a CPD cycle;
2.3 If you work in two or more Classes of Business you have to do 18 hours of CPD per cycle.
3. HOW LONG IS A CPD CYCLE?
12 months, starting on 1st June each year and running until 31st May the following year.
4. WHAT COUNTS AS A CPD ACTIVITY?
Anything that is relevant to maintaining and building knowledge, skills, expertise and ethical standards. It has to be accredited by a Professional Body that confirms that the activity can be verified – which means proof of the identity of the person completing it, and proof that it was completed. The Professional Body gives the activity a value in hours.
4.1 I am studying for a qualification. Can this count as time for CPD purposes?NO.
Activities performed towards a qualification do not count.
4.2 I am under supervision until I pass the RE5 examination for representatives. Do I have to complete CPD’s as well? NO.
CPD obligations will only start once you have achieved competence by passing the RE5 examination.
4.3 I attended a workshop to prepare me to write and pass the RE5 examination. Does this count towards CPD’s? NO.
Training undertaken during your time under supervision does not apply
4.4 My employer organizes sessions which count for CPD points: do those count?The Authority (FSCA) requires CPD activities to have hour values which need to be verified by a professional body.
4.5 I was under supervision until the end of August. When do I start CPD, and how many hours must I do?CPD hours are not done while under supervision because you are still working towards meeting the competency requirements.Your CPD obligation would have started as soon as you were fully competent – from 1st September on wards. The minimum number of hours you have to complete by the end of the cycle is adjusted pro rata according to the time left in the cycle when you started.
EXAMPLE: If your work would usually require 18 CPD hours, then the adjustment would be 18 ÷ 12 (giving hours per month) 1.5 x 9 (Sep to May, remaining months) = 13.5 hours.
4.6 I am a Key Individual for my FSP. Do I have to do CPD? YES.
The minimum hours of CPD that you have to record depends on the Classes of Business and the sub classes that you manage or oversee, just as for a Representative.
4.7 I am going to attend a study course for the RE1 examination for Key Individuals. Does that count towards CPD hours? YES, as long as the programme is accredited by a Professional Body.
4.8 I attended a half-day product training session for a new product introduced by an Insurer. How many hours CPD can I record for that? NONE.
Product specific training does not count towards CPD.
5. WHO IS RESPONSIBLE FOR MAKING SURE THAT CPD ACTIVITIES ARE COMPLETED?
Each Representative, Key Individual or Natural person FSP must ensure that a suitable range of CPD activities is completed each cycle and that at least the minimum number of hours is recorded per CPD cycle. The individual must keep a record of the activities that he or she completed in a competence register. The FSP must have policies and procedures that set out how these requirements will be met and must administer the CPD process.
-Andrea Venter