Continuing professional development (CPD)
All relevant providers (except for聽provisional relevant providers) are required to participate in development programs and activities that ensure they maintain and extend their professional capabilities, knowledge and skills, including keeping up to date with all regulatory, technical and other developments relevant to the provision of financial advice.聽
Relevant providers must comply with the CPD requirements set by the Minister in the (CPD Determination).聽Relevant providers must complete a minimum of 40 hours of CPD each year. This may be reduced to a minimum of 36 hours of CPD each year if a relevant provider works part-time for the whole of the CPD year and has received the prior written consent of their authorising Australian financial services (AFS) licensee.
At least 70% of the applicable minimum hours must be spent on qualifying CPD activities approved by the relevant provider鈥檚 authorising AFS licensee. The Minister does not approve the required professional development activities.
There are minimum hours set for CPD across the following mandatory categories:
- technical competence (5 hours)
- client care and practice (5 hours)
- regulatory compliance and consumer protection (5 hours), and
- professionalism and ethics (9 hours).
These minimum hours are specified in the聽. The balance of up to 40 hours must consist of qualifying CPD activities.
Relevant providers can use their AFS licensee鈥檚 templates and guidelines to help them meet their CPD requirements.
The relevant provider (or their AFS licensee) must:
- keep complete and accurate records of their CPD activity, and
- be able to provide a copy of these records to their AFS licensee on request.
AFS licensees must update the Financial advisers register聽if a relevant provider they authorise failed to comply with the annual CPD requirements.
Relevant providers who provide tax (financial) advice services
For relevant providers who provide tax (financial) advice services to retail clients (also known as qualified tax relevant provider), the minimum hours for CPD across the mandatory categories include an additional 5 hours of CPD in the area of tax (financial) advice. For more information on the CPD requirements that apply to relevant providers who provide tax (financial) advice services to retail clients,聽see Information Sheet 268 Relevant providers who provide tax (financial) advice services (滨狈贵翱听268).
Persons training to become a relevant provider
Persons training to become a relevant provider and in the third or fourth quarter of their professional year (also referred to as a 鈥榩rovisional relevant provider鈥�) are not required to comply with the CPD requirements set by the Minister. However, they do need to complete structured training as part of their professional year requirements. For more information on these requirements see聽Professional year.