Strategi has looked at what various professions around the world do regarding CPD, considered that in relation to current legislation and regulation, then applied a ‘Best Practice overlay’ to develop a practical solution that not only meets today’s compliance requirements but also positions the adviser to meet rapidly increasing consumer expectations.
Continuing Professional Development (CPD) has a critical role to play in encouraging public confidence in the professionalism of financial advisers. CPD is something that all financial advisers should subscribe to regardless of whether they are an AFA, RFA, nominated representative or a QFE adviser.
Section 33 of the Financial Advisers Act 2008 states that a financial adviser, when providing a financial adviser service must exercise the care, diligence and skill that a reasonable financial adviser would exercise in the same circumstances. Section 33 provides some guidance as to what would potentially be regarded as being ‘reasonable’. However, Strategi regards that as being the very minimum and believes that a professional financial adviser who is really serious about doing a quality job for their client would voluntarily subscribe to the standards deemed to be the minimum for an AFA. In the event of a dispute or litigation in the future, those who are making a determination or ruling about the competency of the financial adviser may use the care, diligence and skill requirements of an AFA as the benchmark of professionalism. Therefore from a best practice perspective, Strategi recommends all financial advisers abide by Code Standards 14, 17 and 18 (from the Code of Professional Conduct for Authorised Financial Advisers) in relation to CPD.
Download the CPD Guidance note and the associated templates below.