The AFA has updated advisers on what their minimum Continuing Professional Development requirements will be under the new FASEA regime.
In its most recent weekly update, the Association suggested it was timely – in the lead-up to 30 June – for its members to consider whether they are on-track with their updated CPD requirements, which will vary for advisers depending on their licensee’s processes (see: FASEA Releases CPD and Ethics Instruments…).
In noting the entire CPD regime changed from 1 January 2019, with the introduction of the FASEA requirements, the Association reminded members of transitional arrangements, where almost all advisers will have an extended CPD year depending on the nature of their licensee’s nominated CPD year.
…almost all advisers will have an extended CPD year
It clarified that, for all advisers on a financial year CPD calendar, their first CPD period will be 1 January 2019 to 30 June 2020: “In this 18 month period, they will have a total CPD target of 60 hours, being a pro-rata of 20 hours for 1 January 2019 to 30 June 2019 plus the new full 40 hours for the 2019/20 financial year,” said the statement, adding that only advisers on a calendar year will have a standard 12 month period, with a 40 hour total target.
The AFA told its members individual FASEA CPD areas will also be worked out on a pro-rata basis, meaning that, for an 18-month transition period, the minimums for each individual component would be:
- Technical Competence: 7.5 hours
- Client Care and Practice: 7.5 hours
- Regulatory Compliance and Consumer Protection: 7.5 hours
- Professionalism and Ethics: 13.5 hours
The remainder up to the total target is to come from either of these categories or the General category.
The Association also noted the importance of the Professionalism and Ethics component, which requires a target of nine CPD hours in a 12-month CPD year:
“As the Code of Ethics and Code Monitoring will be included as a major part of the FASEA exam curriculum, and a mandatory bridging course or component in the Graduate Diploma programs, it will be essential to undertake this study early,” said the Association, which urged its members to proactively look for Professionalism and Ethics content to ensure that they meet this target.
Industry graduates first question to my AFSL when enquiring about an AR was – ‘what’s my gross salary going to be?’ Their people skills – ‘zero’. Their’ real world knowledge – ‘zero’. And these are to be the new ‘professional & ethical’ FPs of the future. God help the industry. Whilst, true sales [oops can’t say that – advice] skills & decades of experience add up to – ‘zero’. Glad after 40+ years I’m selling my business.
Interestingly I completed my financial year CPD to 30/6/19 in February only to be told this doesn’t count towards anything now and I have a fresh 60 hours to do by 30/6/20. Fantastic!
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