You Have Done Your CPD, But Are You Competent?

Since the FCA Retail Distribution Review (RDR), advisers must complete 35 hours of CPD annually to keep up with changes in markets, taxation and regulation. Proof of CPD is required for the Statement of Professional Standing (SPS), without which advisers cannot give advice.

However, CPD is not the same as competence. The FCA Handbook states: “A firm must review on a regular and frequent basis employees’ competence and take appropriate action to ensure they remain competent for their role.” This means that meeting the CPD requirement does not necessarily prove an adviser still has the knowledge and skills needed to be competent.

Firms currently have flexibility in how they review competence. Options include product-based testing, diploma exam testing, in-house training such as role plays, or reassessment by examining bodies. Despite this, the FCA is aware that not all firms test advisers regularly, and many do not reassess knowledge annually as part of SPS requirements.

Change is on the horizon. It is likely that advisers will be required to demonstrate competence on an ongoing or annual basis. Taking control now ensures you stay ahead of both the regulator and your peers.

Wizard Learning provides quality, relevant and up-to-date training resources to help you meet CPD requirements and demonstrate competence. One login, one website, one report — your complete one-stop solution.

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