CPD policy – training for responsible managers and representatives

Under this CPD policy, responsible managers and representatives who provide financial services are required to undertake a minimum of 20 CPD points in each reporting period (12 months).

If you are a member of an association with prescribed training requirements, eg Financial Planning Association, then you need to comply with that association’s CPD policy which may include a component of accredited training.

Generally, you can count some non-accredited training toward meeting the CPD requirements. However, you should check this with your association. You will need to ensure you retain sufficient evidence of the training undertaken to establish its relevance and suitability.

Licensees are principally responsible to ensure their representatives complete the necessary training in any reporting period. It is also the licensee’s responsibility to ensure sufficient evidence and details of any training undertaken by representatives are retained and recorded.

The training register for responsible managers and representatives needs to be updated following the completion of any training. Licensees will generally review the training registers at least once a year to confirm individuals have performed a sufficient amount of training. Additional reviews may be undertaken throughout a reporting period to ensure individuals complete the required amount of training.

Under this policy, you cannot carry forward CPD points for completed training from one reporting period to another. CPD points must be earned in the reporting period. This is to ensure responsible managers and representatives stay up-to-date with issues relating to the provision of financial services.

Under this CPD policy, you can carry over the requirement to compete up to five CPD points for any reporting period. This means you can complete as few as 15 CPD points in a reporting period. However, you are required to complete up to 25 CPD points in the following reporting period (unless five CPD points are carried over to the next reporting period).

The ability for CPD points to be carried over should be at the licensee’s discretion, taking into account issues such as sickness and family matters.

Training undertaken by responsible managers and representatives must be relevant to their role having regard to their previous education and experience.

Training should encompass a range of subjects, including -

• financial services regime, eg conduct and disclosure requirements

• financial products, eg managed investment schemes and securities

• legislative updates

• AFS licence conditions and responsible manager requirements

• ethics and professional conduct, and

• compliance.

The following records should be retained:

• Evidence of completion or attendance, such as a statement of attendance or certificate of completion.

• Details of the aims and/or objectives of the course and any assessments undertaken.

• Copies of any seminar papers, newsletters or articles.

You must also ensure the training register is continually updated after any training is completed.

Documentation relating to the completion of training should be retained for seven years, to tie in with the record keeping obligations of licensees under the Corporations Act. Documentation can be stored electronically or in hard copy.

Under this policy, CPD points are allocated based on the duration or length of the training activity and nature of the training activity.

However, the training activity must be relevant to the individual’s role.

The table below summarises how CPD points are allocated to various training activities:

*Events associated with a conference or seminar are not included in calculating CPD points, e.g., morning tea, lunch, dinner or networking sessions are not included. CPD points must only be awarded to conference sessions, such as speaker presentations.