What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Member notice | CPD explained

ARTICLE BY

  • Joe Kotzé

SHARE THIS POST

Dear member,

The below gives a brief explanation of continuous professional development (CPD) in the context of the new fit and proper requirements and how it can differ from CPD that is required for persons who hold professional designations from professional bodies such as the IISA and FPI.

Members are welcome to contact Joe Kotzé at joe@fia.org.za or 087 945 5381 for more information.

Continuous Professional Development (CPD) explained

This note serves to explain the difference between CPD in terms of Board Notice 194 of 2017 – the Determination of Fit and Proper Requirements for Financial Services Providers, applicable from 1 June 2018 – and CPD that is a requirement for persons who hold a professional designation from a professional body such as the IISA and FPI, where CPD has been a requirement for some time now.

We can refer to CPD in terms of the Board Notice above as “regulatory CPD” for fit and proper competence purposes, and CPD for persons who are members of a professional body as “professional CPD”.

Regulatory CPD in terms of the Board Notice:

“CPD activity” means an activity that is accredited by a Professional Body, such as the IISA or FPI, who confirmed that the activity is verifiable. In the event of face-to-face training, “verifiable” means that attendees must be identifiable by means of ID document, passport or driving license.

Note: Product specific training is excluded from a regulatory CPD activity and therefore FSPs, key individuals and representatives who want to attend any type of CPD accredited training, must make sure if the training is not aimed at purely product training. If this is the case, the CPD hours accredited to the training cannot be claimed for regulatory CPD purposes.

The content of a training program for regulatory CPD accreditation, which can be claimed for fit and proper competence requirements, must relate to some of the following criteria as prescribed by section 32(1)(c) of the Board Notice:

  • are relevant to the functions and role of the FSP, key individual and representative;
  • contributes to the skill, knowledge, expertise and professional and ethical standards of the FSP, key individual and representative;
  • addresses any identified needs or gaps in –
    • the technical knowledge of the FSP, key individual and representative;
    • the generic knowledge and understanding of the environment in which the financial service is rendered or managed or overseen; and
    • the knowledge and understanding of applicable laws; and
  • adequately takes into account changing internal and external conditions relevant to the classes and subclasses of business, the category of financial services and the financial products for which the FSP, key individual or representative is authorised, approved or appointed.

When a person or an institution applies to a professional body for regulatory CPD accreditation of a program or presentation, the professional body must evaluate the content of the training against the criteria mentioned above and must then decide if it is of acceptable quality. Only then will the content be approved and allocated an hour value for regulatory CPD purposes. However, notwithstanding this, it is the responsibility of the FSP to ensure that the CPD content is appropriate and relevant for regulatory CPD purposes.

Professional CPD:

Persons who are members of the IISA, a professional body, must complete CPD activities in order to maintain/retain their professional designations such as Fellowship, Associateship or Licentiateship.

IISA defines CPD for purposes of maintaining a professional designation as follows:

Continuing Professional Development (CPD) is a means of staying up to date with market activity, changes in legislation and practice, changes in areas of specialisation, or simply to study further in fields related to your market or interests. It includes attending conferences/seminars/ workshops/courses.

In practice members of the IISA may accumulate CPD hours by attending training that is aimed more at products and in this way comply with the IISA requirements for CPD. Such product training will, however, not be allowed for regulatory CPD as explained above.

If the training conforms to the criteria for regulatory CPD, then the member of the IISA can claim the CPD hours for both regulatory CPD purposes and for professional CPD purposes.

Persons who are members of the FPI, a professional body, must also complete CPD activities in order to maintain/retain their professional designations such as Certified Financial Planner, Financial Services Advisor and Registered Financial Planner.

FPI defines CPD for purposes of maintaining a professional designation as follows:

Continuous Professional Development, in an FPI context, is a process of lifelong learning whereby a financial planning professional systematically engages in activities that maintain abilities, skills and knowledge required for a professional practice. Continuous Professional Development (CPD) refers to activities that develop and maintain capabilities to enable members to perform competently within their professional environments.

The FPI offers a variety of online programs that conform to their professional CPD standards and also conform to regulatory CPD criteria. Members of the FPI will therefore be able to record such training for both regulatory and professional CPD purposes.

Note: It is the professional body that will decide what events are suitable for professional CPD purposes and decide on the allocation of CPD hours under the ultimate control of the South African Qualifications Authority (SAQA).

Conclusion:

While in some cases an event may qualify for both regulatory and professional CPD purposes, in other cases the content requirements may vary or the time allocation may be different.

If you need to comply with the regulatory CPD requirements for fit and proper competence purposes, make sure the CPD accredited training offered is in line with the criteria as set out in section 32(1)(c) mentioned above.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.