Retail advisors have until 31st December 2012 to complete all relevant examinations and CPD gap fill in order to become Retail Distribution Review compliant. But it doesn’t stop there! Post 31st December 2012 the Regulator will also require all involved to complete 35 hours of On-going CPD per year.
What qualifies as CPD?
If you are undertaking exam-related study, training or exams for your initial benchmark qualifications, then this cannot be claimed as CPD activity for RDR purposes. This is because training towards such an exam is contributing towards the initial attainment of competence and maintenance of competence (i.e. CPD) follows on from that initial attainment.
Non-exam related training is permitted to count as CPD so long as the training is relevant to their role, if they are seeking RDR approval. Newly qualified advisers should note that CPD is not mandatory for their initial Statement of Professional Standing (SPS).
If you have previously achieved your benchmark qualification (and are considered “qualified”) then any additional study, training or exams, to meet the new RDR qualification requirements are acceptable as CPD. Note there is even an overlap when it comes to fulfilling your Gap Fill CPD and your On-going CPD. If an advisor, for example, completes 10 hours of CPD Gap Fill, as long as it is relevant to their role and meets all other on going CPD requirements as specified by the FSA, then this can also be used towards the year’s 35 hours of on going CPD.
For more information on CPD gap fill, click here.
Deadlines
In June 2007 the FSA actually published the Retail Distribution Review Discussion paper, reviewing the level of professional standards in the industry. However, despite the RDR kicking off a good few years ago, only recently has it become hot topic. As we approach the December 2012 deadline the RDR is at the forefront of the attention of learning and development and compliance across many wealth managers and IFAs in the industry.
Don’t get caught out by leaving it until the second half of the year and discovering that there are not enough sittings left in the exam schedule for you to complete the qualification and the gap fill required. This is particularly relevant to PCIAM delegates – for more information on the PCIAM exam schedule, click here.
Outside UK
Interestingly the UK is not alone in a Financial Services reform. Jersey Financial Supervision Commission and the Isle of Man Financial Supervision Commission have both announced their intentions to introduce certain aspects of the RDR to raise the level of professional standards.
For more information on RDR, click here.
Coming next month: The SPS Application Process Simplified