From 1 January 2019 Stockbrokers and Financial Advisers who are Relevant Providers must undertake Continuing professional development (CPD) under section 921B of the Corporations Act 2001 (see subsection 921B(5) of the Act).
The minimum number of hours of qualifying CPD activities that a relevant provider must complete during a CPD year is 40. However, in special circumstances if the relevant provider is working part-time for the whole of the CPD year, with the prior written consent of the responsible licensee the minimum number of hours is 36.
CPD activities must include:
(a) a minimum of 5 hours in the CPD area of technical competence; and
(b) a minimum of 5 hours in the CPD area of client care and practice; and
(c) a minimum of 5 hours in the CPD area of regulatory compliance and consumer protection; and
(d) a minimum of 9 hours in the CPD area of professionalism and ethics.
What are Qualifying CPD activities?
The following requirements are to be satisfied:
(a) the activity is in one of the CPD areas in the table below;
(b) the activity has sufficient intellectual or practical content;
(c) the activity primarily deals with matters related to the provision of financial product advice, financial advice services and financial advice business;
(d) the activity is led or conducted by 1 or more persons who are appropriate, and have sufficient standing, expertise, academic qualifications and/or practical experience;
(e) the activity is designed to enhance relevant providers’ knowledge and skills in areas that are relevant to the provision of financial product advice and financial advice services.
(Note: Paragraph (1)(d) does not apply to an activity that consists of professional or technical reading).
CPD Area Content of CPD activity Minimum hours
Technical competence – 5 hours per annum
The activity is designed to enhance participants’ technical proficiency and ability to develop and provide advice strategies that are appropriate to the objectives, financial situations and needs of different classes of retail clients
Client care and practice – 5 hours per annum
The activity is designed to enhance participants’ ability to act as a client-centric practitioner in advising retail clients.
Regulatory compliance and consumer protection – 5 hours per annum
The activity is designed to enhance participants’ understanding of applicable legal obligations and how to comply with them.
Professionalism and ethics – 9 hours per annum
The activity is designed to enhance participants’ capacity to act as an ethical professional.
The activity is designed to maintain and extend participants’ professional capabilities, knowledge and skills, including keeping up to date with regulatory, technical and other relevant developments, but is not in an area referred to in another item of this table.
A responsible licensee must approve qualifying CPD activities.