With the next CPD cycle for the 2023 /2024 period having begun on 1 June 2024 and ending 31 May 2025, we wish to remind FSP’s, key individuals and representatives that CPD is one of the outcomes of the Fit and Proper Requirements is to ensure that persons who render financial services have adequate, appropriate and relevant skills, knowledge and expertise in respect of the financial service, financial products and functions that they perform. CPD activities ensure that FSPs, key individuals and representatives maintain their competence and that their knowledge, skills and abilities remain up to date in a changing and dynamic environment. As a consequence, customers have access to appropriate, knowledgeable and skilled financial services providers.
The CPD cycle runs over a period of 12 months commencing 1 June of every year to 31 May of the following year. An FSP, key individual and representative must ensure that the type and combination of CPD activities undertaken by the FSP, key individual and representative are relevant to their function and role; contribute to their knowledge, skill, expertise, professional and ethical standards. CPD Activities means an activity that is-accredited by a Professional Body and verifiable (activities that included evidence of the identity of the person who partook in such activities and proof of the completion thereof).
Minimum CPD Hours
1. One Class of Business with one sub product example CPD Hours ST Ins Personal (Motor Only) = 6 verified CPD Hours
2. One Class of Business with one sub product and two product line example ST Ins Personal (Motor + Household) = 12 verified CPD Hours
3. More than one class of business example ST Ins + Long Term Ins + Investments = 18 verifiable CPD Hours
Competency Register
FSP’s must update and maintain their competency registers to record CPD Hours. Such registers are to be submitted to the compliance officers by 31 May 2025.
Non Compliance
It is important to note that CPD activities form part of Fit and Proper Competency requirements. Thus, where there is non compliance with the CPD requirements, such as a representative not achieving the CPD requirements before or by the end of a CPD cycle, the FSP must pro-actively remove the representative from the representative register prior to the expiry of the CPD cycle. However, if a representative is already non-compliant with the CPD requirements after the expiry of the CPD Cycle, the FSP has a lawful obligation in terms of its licensing conditions to debar the representative.
If a FSP, Key Individual or representative does not achieve the required CPD hours for a specific cycle, then their authorisation as representative would need to be removed and a corresponding breach report is to be filed with the FSCA.
CRUX Compliance Practitioners (CO3485)