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FINANCIAL PLANNING ASSOCIATION

OF AUSTRALIA LTD

Continuing Professional Development


Policy

Copyright © FPA 2006

Published by FPA
Level 12, 379 Collins Street
MELBOURNE VIC 3000
www.fpa.asn.au

Without limiting the rights under copyright reserved above, no part of these notes, with the exception of
templates found within the Appendices, my be reproduced or utilised in any form or by any means,
electronic or mechanical, including photocopying, recording or by information storage or retrieval system,
without the written permission from FPA.

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CONTENT

Section One Continuing Professional Development

1.1 Introduction
1.2 CPD Requirements of FPA Members
1.3 Adviser Performance Appraisal Process
1.4 Acceptable CPD Content
1.5 CPD Activities for FPA Members
1.6 Professional Reading
1.7 Record Keeping

Section Two CPD Points Allocation and Accreditation

2.1 Accreditation of Programs


2.2 CPD Accreditor Qualifications
2.3 Assessing CPD Activities
2.4 Guidelines for CPD Accreditation
2.5 Allocation of CPD Points
2.6 Non-Accredited Activities

Section Three Audit and Appeals Process

3.1 Audit of CFPs and FPA Practitioner Members


3.2 Evaluation of CPD Accreditors
3.3 Record Keeping

Section Four Appendices

Appendix A – Licensee Requirements for PS 146 Compliance


Appendix B – Acceptable CPD Content
Appendix C – Employee Evaluation and Performance Review Template
Appendix D – Professional Development/Training Plan Template
Appendix E – FPA CPD Register
Appendix F – FPA Professional Reading Journal Template
Appendix G – CPD Accreditation Checklist
Appendix H – Certificate Template

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SECTION ONE: CONTINUING PROFESSIONAL
DEVELOPMENT

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1. 1 INTRODUCTION

Effective professionals in many industries have long realised the importance of gaining new knowledge,
improved skills and developing personal qualities through Continuing Professional Development. In
essence Continuing Professional Development is simply considered part of good professional practice.

In response to the ongoing drive by FPA to increase the professional profile of the financial planning
industry, Continuing Professional Development is considered highly important in ensuring members:

• offer clients up-to-date effective advice;


• keep abreast of current regulatory and legislative changes;
• run efficient and profitable businesses;
• meet all regulatory requirements and standards.

Whilst ASIC has not prescribed minimum hours for Continuing Professional Development, the FPA’s
intention with this Policy is to provide a framework through which members can maintain, update and
develop their competence in areas related to the professional practice of Financial Planning. It is
intended that this policy will provide members with an understanding of the Continuing Professional
Development activities and content that are considered acceptable by the FPA, whilst simultaneously
enabling them to meet ASIC’s requirements.

[PS 146.103] Licensees should implement policies and procedures to ensure that they and their advisers undertake continuing training to
maintain and update the knowledge and skills that are appropriate for their activities.

[PS 146.104] We do not require continuing training courses to be assessed by a CPD Accreditor.

[PS 146.105] Advisers should undertake continuing training to maintain their competence. This is particularly necessary because of rapidly
changing markets and regulatory requirements.

[PS 146.106] Licensees have an obligation to maintain their competence to provide the financial services authorised under their AFS
licence. They must also ensure that their representatives are adequately trained and competent to provide those financial services. As part of
meeting their obligations, licensees need to establish policies and procedures on continuing training that will address how they and their
advisers will:
(a) maintain knowledge and skills that are appropriate for their activities and responsibilities, and are consistent with the training
standards;
(b) update their knowledge and skills, especially in areas where there is continual change (eg legislation, regulatory policies and
standards, economic and financial developments, new products and new market practices); and
(c) develop new knowledge and skills to assist with their current role or roles contemplated in the near future.

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1.2 CPD REQUIREMENTS OF FPA MEMBERS

1.2.1 FPA Requirements

Non-CFP practitioner members are required, as a condition of FPA membership, to undertake a


minimum of 90 points of Continuing Professional Development (CPD) over any three year (triennium)
period.

CFP members of the FPA are required to undertake no less than 120 CPD points per triennium period.

All Practitioner Members must undertake an appropriate Performance Appraisal Process, including an
Annual Training Plan and CPD Register, in order to comply.

Whilst minimum CPD requirements have been set by the FPA, it is possible that the Performance
Appraisal Process will identify that a greater amount of CPD is required for Practitioner Members to
maintain or ensure competence.

FPA Members are required to complete at least 5 CPD points per triennium on Professional Standards
and Compliance, with 3 CPD point on Ethics being compulsory. This could involve professional reading,
case studies or CPD Online. Such topics could include, but are not limited to:

 Ethics (Compulsory)
 Professional Conduct
 Risk Management
 Disclosure

CPD Requirements for the 2006-2009 triennium

CFP Practitioner Members Non CFP Practitioner


Members

TOTAL 120 points 90 points

Consisting of

Compliance and At least 5 points to cover At least 5 points to cover


Ethics Training compliance related CPD compliance related CPD
INCLUDING INCLUDING
3 points to ethics content. 3 points to ethics content.

Technical Training Competency areas identified Competency areas identified


related to PS146 in the individual training plan. in the individual training plan.
Competency areas

Personal Not in excess of 15 points Not in excess of 9 points per


Development per triennium. triennium.
Training

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1.2.2 CPD Defined

FPA considers Continuing Professional Development to be activities which are not carried out as part of
a member's daily work and are beyond minimal education requirements such as the Diploma of Financial
Services (Financial Planning).

What may be considered CPD for one adviser, may be considered minimal education requirements for
another.

1.2.3 Terminology

Please note that FPA talks in terms of CPD points acquired, not hours.

1.2.4 New Members

CPD requirements of a new FPA Practitioner Member are effective immediately upon membership
acceptance.

The initial CPD requirements for new practitioner members will be prorated from the date of membership
acceptance.

1.2.5 Membership Categories

Practitioner Members:
Certified Financial Planners
Senior Associates
Associates
Associates (Academic)
Affiliates

Non-Practitioner Members:
General members
Student members

1.2.6 CPD Triennium Period

CPD points shall be accrued by FPA Members on a financial year basis from July 1 to June 30. Under
Individual FPA CPD requirements are for set triennium periods.

FPA’s current triennium period began on July 1, 2006.

1.2.7 Transferring CPD Points

Members cannot transfer excess points from one triennium into the following triennium; CPD points in
excess of the required number cannot be transferred into the next CPD triennium.

1.2.8 Averaging CPD Points

Members can allow a 5 point leeway per year, within a triennium. For example, non-CFP members
could obtain 25 CPD points in the first year, 35 CPD points in the second year and 30 CPD points in the
third year of their triennium period.

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1.2.9 Non-Accredited CPD Activities

Members can undertake activities that do not have an FPA CPD accreditation number attached to them,
however the content of the activity must be directly related to the content outlined in Appendix B.

If audited, members must be able to explain how any non-accredited activities included were relevant to
their current role. The documentation to be retained is outlined in Section 1.7 of this document.

It is strongly recommended that practitioner members undertake accredited programs to ensure they
meet minimum FPA CPD criteria.

[PS 146.114] We have not prescribed a minimum number of hours per year that an adviser should spend on continuing training. This is
because the time required will vary according to the adviser’s activities and level of experience. Licensees should nominate an appropriate
figure, based on the adviser’s activities and experience. As a guide, some professional bodies have already set a minimum number of hours
to be satisfied by their members. We will monitor whether licensees nominate appropriate minimum hours of continuing training. We will
consider setting minimum hours, if we become aware that licensees are not nominating appropriate figures.

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1.2.10 CPD Activities by Other Membership Bodies

CPD activities offered by other membership bodies can be included on your FPA CPD Register. For
such activities that are not accredited, evidence of completion, an outline of course aims and/or
objectives and any assessments undertaken must be retained in order to justify the inclusion of such
programs. Please refer to Appendix B for approved CPD content.

If audited, members must be able to explain how these activities were relevant to their current job
function.

1.2.11 Suspension of CPD Requirements

Individuals not wishing to suspend their membership, may request a suspension of CPD requirements,
due to extenuating circumstances such as medical, disability or parental leave.

Practitioner Members of the FPA are obliged to contact the FPA in writing, along with supporting
documentation. CPD requirements for the triennium being affected will then be determined on a case-
by-case basis.

Application for suspension of CPD requirements cannot be sought due to age or workload.

Advisers should be required to undertake a competency assessment upon their return to work
to ensure they meet minimal educational/competency requirements.

1.2.12 Suspension of CPD Requirements/Leave of Absence – CFP Practitioners

The FPA adopts the following policy regarding suspension of CPD/leave of absence for CFP
practitioners:

• < 1year/ All CPD points in arrears Or Principal member certification to current competency plus
representative status for FPA Principal member for period of 3 months prior to application

• More than 1 year/Less than 3 years – 40 CPD hours within the last 2 years Or Challenge
Assessment (as modified for this purpose) plus representative status with FPA Principal
member for period of 3 months prior to application

• More than 3 years – Must pass CFP® Challenge assessment (2x3hr examination) plus
representative status with FPA Principal member for period of 3 months prior to application

Ongoing membership dues at General membership rates will be required; and the member will not be
able to use the CFP designation during the period of absence.

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1.3 ADVISER PERFORMANCE APPRAISAL PROCESS

The Licensee must ensure that all representatives are adequately trained and competent to provide the
financial services covered by its licence.

This requirement is best met by the implementation of a Performance Appraisal Process that addresses,
at a minimum, the identification and review of job functions, evaluation of the representative’s
performance, identification training and personal development requirements, and provides feedback to
representatives.

This requirement is continuous to help ensure representatives maintain their competence and expertise.

Practitioner Members must undertake a Performance Appraisal Process in order to comply with FPA and
ASIC CPD requirements.

For those organisations that have yet to implement a Performance Appraisal Process, the following is an
example of such a process. Corresponding templates can be found in Appendix C – E.

[PS 164.57] A licensee must monitor and supervise the activities of representatives to ensure they are complying with the law: see
s912A(1)(ca). Licensees must also ensure that their representatives are adequately trained and are competent to provide financial
services: see s912A(1)(f).

Note: The obligation to monitor and supervise applies in relation to all representatives of a licensee (whether or not the representative provides financial
services). The obligation to ensure its representatives are competent and trained applies only to a licensee’s representatives that provide financial services.

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Sample Process

Determine/Review Job (a) Determine adviser’s job description is current and


Function adequately reflects the financial services they provide.
(PS 146.109a)

Determine/Review
Competence
(b) Assess the adviser’s training and personal
(PS 146.109b) development requirements in relation to their job
description and PS 146 training standards.

(c) Determine objectives to be met (i.e. the desired


Annual Training changes in the adviser’s knowledge, skills and/or
Plan performance at the end of the review period).
(PS 146.109c & 146.109d) (d) Decide the structure of the training plan (including
nominating appropriate training methods).

Ongoing Supervision & (e) Informal feedback on performance should be given


Feedback on an ongoing basis as part of the supervision and
(PS 146.109e) monitoring process.

(f) Assess whether the adviser has met the objectives of


the training plan;
Undertake Performance
Review
(g) Provide feedback sessions with the adviser about
(PS 146.109f) their performance; and
(h) Review and update job descriptions/duties where
applicable

Record
Activities & Outcomes
(PS 146.110)

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1.4 ACCEPTABLE CPD CONTENT

All advisers are required to meet generic knowledge requirements which include:

 the economic environment


 operation of financial markets; and
 financial products.

Advisers must meet specialist knowledge and skill requirements relevant to all the areas and products
they advise on. Not all competencies must be addressed, the number is dependent on job function and
the outcome of the Performance Appraisal Process.

Whilst Advisers should also be kept up-to-date on their organisation’s policies and work practices, this is
not considered acceptable CPD content for FPA purposes. CPD is considered to be those activities
which are not carried out as part of a member's daily work, beyond minimal education requirements and
meet specified content criteria.

When developing or assessing CPD activities, three elements should be addressed to determine its
compliance:

a) Content – does the content meet the criteria as outlined in this policy
b) Context – is the content written in a context specific to financial advisers
c) Educational Level – is the content at the appropriate level i.e. beyond minimal education
requirements, suitable for the intended audience.

CPD activities providing an overview of organisations and product, will only be deemed acceptable
where the information relayed is above and beyond the minimum ‘Know your Product’ information
required for an adviser to recommend that product. Significant technical information would need to be
presented, with examples provided to demonstrate how such products would best fit into a client
strategy.

See Appendix B for a more comprehensive outline.

Specialist Knowledge:

1. Managed Investments
A. Types of products
B. Taxation
C. Legal environment – disclosure and compliance

2. Superannuation
A. Operation and management of the superannuation industry
B. Taxation
C. Legal environment – disclosure and compliance

3. Derivatives
A. Operation of securities markets
B. Types of products
C. Theories of investment, portfolio management and management of investment and risk
D. Taxation
E. Legal environment – disclosure and compliance

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4. Securities
A. Operation of securities markets
B. Types of products
C. Theories of investment, portfolio management and management of investment and risk
D. Taxation
E. Legal environment – disclosure and compliance

5. Insurance
A. General Insurance
B. Life Insurance
C. Insurance Broking

6. Foreign Exchange
A. Operation of Foreign Exchange Markets
B. Types of Products
C. Theories of investment, portfolio management and management of investment and risk
D. Taxation
E. Legal Environment – disclosure and compliance

7. Financial Planning
A. Theories of investment, portfolio management and management of investment and risk
B. Advisery functions
C. Legal environment – disclosure and compliance
D. Taxation
E. Estate Planning

8. Deposit Products & Non-Cash Payment Products

A. Types of Products
B. Legal Environment – disclosure and compliance

Generic Knowledge:
A. The Economic Environment
B. Operation of Financial Markets
C. Financial Products
D. Taxation Issues
E. Advisery Functions
F. The Legal Environment and Disclosure and Compliance
G. Knowledge of relevant industry Codes of Practice and conduct
H. Knowledge of complaints resolution procedures (internal and external)
I. Knowledge of regulator’s guidelines including the requirements of ASIC’s PS 146
J. FPA Rules of Professional Conduct and Code of Ethics

Generic Skills:
A. Establish relationship with client
B. Identify clients objectives, needs and financial situation
C. Analyse client objective, needs, financial situation and risk profile
D. Develop appropriate strategies and solutions
E. Present appropriate strategies and solutions to the client
F. Negotiate financial plan / policy / transaction with client
G. Co-ordinate implementation of agreed plan/policy/transaction

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H. Complete and maintain necessary documentation
I. Provide on going service where requested

Additional

A. Practice Management and Personal Development

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1.5 CPD ACTIVITIES FOR FPA MEMBERS

FPA considers the following activities acceptable for CPD purposes, however it is at the discretion of the
Licensee to determine what they consider acceptable CPD activities for their organisation. This approval
could be documented within the adviser’s annual training plan.

Whilst the FPA has not prescribed acceptable hours for each activity it is advisable that members
attempt to undertake CPD through a variety of methodologies. For example:

• Attendance at seminars, presentations and updates;

• Attendance at workshops with and without assessment activities;

• Attendance at conventions and conferences on financial planning and related topics;

• Courses presented by educational institutions and professional bodies that cover specialist
knowledge components of PS 146 requirements beyond minimal education requirements;

• Undertaking and completing units of the Advanced Diploma of Financial Services (Financial
Planning);

• Undertaking and completing units of the Certificate of Financial Planning (CFP) program;

• Serving on technical/education committees;

• Working as a lecturer, instructor or tutor related to financial planning units, (repeat presentations do
not receive CPD points);

• Design and development of course material in a relevant financial planning topic;

• Writing technical articles, papers or books on financial planning for publication;

• Undertaking FPA CPD online programs, distance education courses on financial planning, reviewing
financial planning educational videos, audio tapes and computerised learning packages;

• Professional reading on financial planning. The inclusion of Professional Reading as a CPD activity
must first be approved by your licensee.

Note:
Any programs that enable practitioners to meet minimal educational requirements in line with
PS146 do not qualify as Continuing Professional Development.

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1.6 PROFESSIONAL READING

FPA Members seeking to claim CPD points for Professional Reading will be required to document the
following information for future auditing purposes:

1. List down in chronological order the author’s name, title of book, journal or newspaper, name of
publication, place of publication, year of publication and page numbers.

2. Document how a FPA Member’s Professional Reading has resulted in enhanced financial
planning knowledge and improved services to current and future clients.

3. Document the date that the FPA Member completed Professional Reading related to Financial
Planning issues.

4. FPA Members are required to record the approximate number of hours spent on Professional
Reading.

5. FPA Members are also required to document the number of CPD points claimed per year for
engaging in Professional Reading on Financial Planning issues.

6. The Professional Reading Journal does not need to be submitted to FPA but should be retained
for audit purposes.

Please note: The inclusion of Professional Reading as a CPD activity must first be approved by your
Licensee.

Please refer to Appendix F for the Professional Reading Journal template.

Note:

All FPA Members seeking to claim CPD points for Professional Reading MUST maintain a Professional
Reading Journal. Claims will be disallowed if a Journal cannot be presented during an audit.

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1.7 RECORD KEEPING
Practitioner Members (and their Principal) must retain the following:

• Evidence of CPD activities undertaken e.g. FPA CPD Register or internal CPD tracking report,
including Certificates of Attendance.

• Evidence of participation in an appropriate Performance Appraisal Process (including an


Annual Training Plan).

• Members can undertake activities that do not have a CPD accreditation number attached to
them, however the content of the activity must directly relate to those subjects outlined in
Appendix B. The following information or documents must be maintained for non-accredited
activities:

− Program Content
− Program Structure
− Proof of Completion
− Copies of any Assessments undertaken

• Documentation must be kept for five (5) years.

Note:

An FPA CPD Register is available to assist members to keep track of their CPD points they are
claiming. This register does not need to be submitted to FPA unless requested.

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SECTION TWO: CPD POINTS ALLOCATION AND
ACCREDITATION

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2.1 ACCREDITATION OF PROGRAMS

To enable financial planners to meet their Continuing Professional Development requirements, the
Financial Planning Association (FPA) has developed a comprehensive national CPD program, policy
and approach. As part of this CPD policy, FPA has empowered agents of Principal members, herein
referred to as CPD Accreditors, to undertake the accreditation of their internal training courses.

In order to become registered, CPD Accreditors will need to undertake the FPA’s Accredited Assessor
training program, which outlines the CPD policy, accreditation and audit processes.

CPD Accreditors cannot accredit CPD activities for any organisation but their own, UNLESS the
organisation is a subsidiary of a Principal member parent company. The FPA should be approached
in instances where this is not clear.

All CPD activities designed and developed with the intent of marketing to people outside your
organisation e.g. roadshows, conferences, etc must be forwarded to, and accredited by, the FPA. This
will ensure that all CPD activities branded as ‘FPA Accredited’ and available to the general financial
services community meet FPA accreditation standards.

In setting these accreditation standards and requirements, FPA aims to encourage consistent
standards of education and training across all sectors of the financial services industry.

Note:

Undertaking the FPA CPD Accreditor program will familiarise participants with the process of
accrediting training as outlined in this policy.

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2.2 CPD ACCREDITOR QUALIFICATIONS

Credentials required of an FPA CPD Accreditor:

To become a CPD Accreditor, candidates must successfully complete the FPA CPD Accreditor
program1, AND be an agent of a principal member of FPA.

Principal members can nominate as many agents as they feel necessary to become CPD Accreditors.

If a CPD Accreditor moves from one Principal member to another Principal member they maintain their
CPD Accreditor status. However they must notify FPA of their new details.

This program need only be completed once to gain CPD Accreditor status. Update sessions will be
introduced in the event of major CPD Policy Changes.

1
The CPD Accreditor Training program is offered via CPD Online. Contact cpd@fpa.asn.au for further details

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2.3 ASSESSING CPD ACTIVITIES

2.3.1 Formal Accreditation

Formal accreditation applies to those CPD activities that are developed with the aim of marketing and
delivering them to the general financial services community.

• Formally accredited CPD activities are assessed and allocated appropriate CPD points
• An Accreditation Number is applied to the CPD activity
• The activity can be advertised/marketed as an 'FPA Accredited Program'.

Example: XYZ Company designs a training program on Retirement Income Streams. They intend to
take this program on a roadshow around Australia and make it available to anyone in the financial
services industry. This program would need to be formally accredited by the FPA.

Only the FPA are authorised to undertake


formal assessment of CPD activities.

2.3.2 Informal Accreditation

Informal accreditation is the process of applying relevant points to CPD activities for internal purposes
only.

• The CPD Accreditor can assess activities for informal accreditation.


• The CPD Accreditor notifies the internal staff of how many CPD points they can allocate for the
activity should they attend. There is no Accreditation Number.
• The activity is accredited for internal purposes only.

Example 1: XYZ Company designs a training program on Retirement Income Streams. They intend
for this program to be made available to internal staff only. This program can be informally accredited.

Example 2: Fred Smith works for ABC Financial Services and is a registered CPD Accreditor. Fred
attended a non-accredited program run by an external provider that he believes would greatly benefit
other advisers in his company. As the company’s CPD Accreditor Fred has allocated the appropriate
CPD points and notified all staff of the points they can claim should they complete the course. This is
an informal accreditation.

2.3.3 Chapter Accreditations

Each FPA Chapter will be invited to nominate a qualified CPD assessor, who will need to have
undertaken the CPD Accreditor Program, to conduct the accreditation of Chapter events. The
accreditation process must be strictly adhered to and all relevant documentation kept and accreditation
details forwarded to the FPA. Records will be audited randomly covering each chapter at least once a
year.

Alternatively, a formal application for accreditation may be submitted to the FPA. This will however
incur the costs as set out in the guidelines. The application fee will be waived.

CPD activities that are appropriate for formal accreditation must be reviewed via one of the two
abovementioned processes. CPD activities that are appropriate for formal accreditation include
presentations, seminars and workshops. All FPA conferences must undergo a formal accreditation
conducted by the FPA.

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There are some other Chapter activities that are valuable activities, but are not appropriate for CPD
accreditation. Breakfasts, Luncheons and Social Activities are valuable networking opportunities for
members, but do not qualify as CPD.

Discussion Groups and Forums, by the nature of the activity are not generally structured enough to
warrant formal accreditation, but participation in such activities can be documented on a personal
register of CPD activity as outlined in FPA CPD policy item 1.7.

2.3.4 Declining Accreditation of CPD Activities


CPD activities submitted for accreditation must be recorded, regardless of whether they are approved
or declined. However, for activities that are declined it is not necessary to retain all supporting
documentation.

2.3.5 Accrediting Sections


It may not be appropriate for an entire CPD activity to be granted CPD points, it is therefore acceptable
for sections only to be accredited. E.g. 2 hours only of a 6 hour workshop may be considered
acceptable for accreditation.

2.3.6 Allocating CPD Points to Competency Areas


CPD points must be allocated to specific competency/knowledge areas for all accredited programs.
The purpose being to better enable members to track the content areas being covered and to promote
a higher standard of content and relevance delivered through CPD activities. For example in a two
hour presentation 1 point may be allocated to Managed Investments and 1 point to Securities.

2.3.7 Certificates

The FPA requires you to provide participants with evidence of CPD points and relevant competency
areas addressed for all CPD activities.

Certificates do not need to be in the form of hard copy certificates. If your processes lend themselves
to soft copy notification of attendance/completion this will be deemed acceptable by FPA.

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Formal Accreditation

Programs submitted to FPA for accreditation

FPA allocates CPD points, Accreditation Number and relevant competency areas

Programs can be marketed as FPA Accredited

Informal Accreditation

CPD Accreditor

Attends or is provided with non-accredited program details


(non-accredited programs have no CPD points or Accreditation Number)

CPD Accreditor “informally” assesses program for CPD points

CPD Accreditor notifies staff how many CPD points they can allocate for
completing/attending program

Programs cannot be marketed as FPA Accredited

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2.4 GUIDELINES FOR CPD ACCREDITATION

The following steps outline the process of accrediting informal (internal) training programs, including
the materials that must be collected and the criteria the program must satisfy.

Step 1. Undertake the CPD Accreditor program and become registered with the FPA.

Step 2. Collect the following materials for all programs being accredited:

 A structured outline, agenda or timetable of the program. This should contain the
program title and duration of each session to be delivered.

 A copy of the leader’s guide, course notes or presentation. These could comprise of
materials representative of the contents of the program.

 A copy of the participant materials.

 A copy of the course evaluation to be administered (if applicable).

 Copies of formal assessments (if applicable), along with examples of case studies and
scenarios used or referred to during the program. If essay topics were set, they need to
be provided together with completed assessment and feedback comments.

 An outline of the facilitator and/or course developers qualifications and experience in


Financial Services and/or instructional design.

Step 3. Using the materials collected in Step 2, ascertain whether the program meets the following
criteria:

 Has a clearly identified structure or agenda.

 Has clearly identified aims and objectives.

 Is developed by qualified instructional designers and/or subject matter experts.

 Is well structured and follows a logical format that promotes adult learning principals.

 The content is current and up-to-date.

 The content contributes to the financial planner’s knowledge and skills (see Appendix B)

 Course participants receive course materials (where appropriate) that include worked
examples, participant activities, etc that promote action based learning.

 A course evaluation is administered and collected at the end of the program and results
are collated and acted upon (where appropriate).

 Evidence of Completion/Attendance of the program is provided to participants.

Step 4. If the program meets the above criteria and is approved for accreditation, CPD Accreditors
must allocate:

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• The required number of CPD points.

• A breakdown of the competency areas covered.

• CPD Accreditors must maintain a logbook of their accredited programs.

Step 5. Accreditation is valid for twelve (12) months, after which programs must be reviewed.

Step 7. Materials and evidence must be filed for a minimum of five (5) years.

Note:

FPA will have the right to review and withdraw points for any material that has been
assessed by a CPD Accreditor and does not meet FPA guidelines.

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2.5 ALLOCATION OF CPD POINTS

CPD Activities CPD Points awarded

Seminars/ Presentations/ Conventions 1 point per hour (excluding break periods)

Workshops 1.5 points per hour (excluding break periods)


(Involves participant interaction and engagement via
case studies, role plays, etc. Usually a maximum of
25 participants.)

Participation in FPA education and technical 1 point per hour, per committee
committees

Tertiary Courses in Financial Planning Up to 15 points per financial planning subject


(beyond minimal education requirements) (Upon successful completion of)

Online programs 1 point per hour

Professional reading that can acquire CPD points 1 point per hour

Course material design and development in a 1 point per hour


Financial Planning subject

Presenting/Teaching/Lecturing/coaching/mentoring 1 point per hour


(repeat presentations do not receive CPD points)

Writing or reviewing technical articles, papers or 1 point per hour


books on financial planning for publication
(repeat publications do not receive CPD points)

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2.6 NON-ACCREDITED ACTIVITIES

Members can undertake CPD activities that are not FPA accredited, however they need to ensure they
can justify participation in relation to their job function if audited by the FPA.

It is the responsibility of the FPA Member to keep a record of the following information or documents:

• Program Content
• Program Structure
• Proof of Completion
• Copies of any Assessments undertaken

If audited, members must be able to explain how any non-accredited activities included in their CPD
Register meet FPA CPD requirements.

Remember:
• All FPA Members are required to keep their supporting documentation for non-accredited activities
in the event that they are audited.

• Accredited programs require a Certificate of Completion/Attendance only.

• Non-accredited programs require supporting documentation of:

- Program Content;

- Program Structure;

- Proof of Completion;

- Assessments undertaken.

• Each FPA Member is responsible for deciding, within these guidelines, what is considered to be
acceptable CPD in the profession of financial planning.

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SECTION THREE: AUDIT AND APPEALS PROCESS

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3.1 AUDIT OF CFPS AND FPA PRACTITIONER MEMBERS

The FPA may conduct random audits of CPD points for the most recent reporting period.
When audited:

• the member is notified of the audit and asked to send their CPD register to the FPA.

• the reported CPD points are reviewed by the Education Department, and a determination is
made as to whether the CPD points are accepted or if any additional information is required

• the member receives confirmation from the FPA regarding the audit and any further action
needed.
3.1.1 Deficient Audit Results
If any CPD Points are denied during the audit and a deficiency results, the member will be given 90
days to report additional hours to cure the deficiency.

If the deficiency is not amended, a deficiency notice will be sent to the individual. If the necessary
hours remain unreported the individual may have their practitioner member status revoked. CFPs will
not be authorised to use the CFP marks.

Unsupported or misstated CPD reporting is a violation of FPA’s Code of Ethics and may be grounds
for disciplinary action up to revocation of the CFP certification.

3.2 EVALUATION OF CPD ACCREDITORS


In order to maintain the integrity of the informal accreditation process, an appropriate evaluation
process is vital. The evaluation of CPD Accreditors is incorporated into the current National Quality
Assessment Program (NQAP) conducted by the FPA Professional Standards department.

The NQAP has an educational focus, aimed at assisting Principal members to self assess whether
they are consistently and effectively maintaining FPA professional standards.

Every year, all Principal members, as a mandatory condition of membership, are required to complete
the Self Assessment Questionnaire (SAQ), which is a component of the NQAP. The purpose of the
SAQ is to allow the Principal member to self assess the effectiveness of their policies and procedures
in accordance with FPA professional standards. The SAQ can be used as a business tool to check the
overall compliance operations of the business and will include questions to enable evaluation of the
CPD Accreditor/s for the Principal.

In addition, the Education Department will conduct random detailed assessments of CPD Accreditors.
An accreditor selected for review will be asked to submit support documentation for one accreditation
they have completed.

Failure to respond to a request for information will result in the accreditor being removed from the
Authorised Accreditor Database.

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3.3 RECORD KEEPING

The following information needs to be kept for a period of 5 years for ALL accredited courses signed
off by a CPD Accreditor:

• Name of CPD Accreditor,


• Date of CPD Assessment,
• Course outline,
• Course materials,
• Any formal assessments set,
• Copy of course evaluation and results if available
• Review date.

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SECTION FOUR: APPENDICES

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Appendix A: Licensees Requirements for PS 146 Compliance
• Ensure that tasks and functions carried out by individual advisers are documented
• Identify and address any gaps or weaknesses in the adviser’s activities
• Monitor the continuing training of advisers who are geographically separated from the licensee
and those advisers with multiple authorisations.

Maintaining Compliance (PS 146.106)

Licensees are obliged to maintain their, and their advisers, competence to provide the financial
services authorised under their AFS licence.

Licensees must also implement policies and procedures outlining how they, and their advisers, will:

(a) Maintain knowledge and skills that are appropriate for their activities and responsibilities, and are
consistent with the training standards;
(b) Update their knowledge and skills, especially in areas where there is continual change eg
legislation, regulatory policies and standards, economic and financial developments, new
products and new market;
(c) Develop new knowledge and skills to assist with their current role or roles contemplated in the
near future.

Policies and Procedures (PS 146.107)

These policies and procedures should include:

(a) Nominating a person who is responsible for continuing training (see PS 146.108);
(b) Establishing an annual training plan for each adviser (see PS 146.109);
(c) Keeping records of advisers’ training programs (see PS 146.110);
(d) Deciding how much training each adviser needs each year (see PS 146.114)

Nominating a Training Officer (PS 146.108)

Licensees should nominate one or more persons who are directly responsible for the training (initial
and continuing) of advisers.

Developing Annual Training Plans (PS 146.109)

Licensees should develop an annual training plan for each adviser. Annual training plans should
address the following steps:

(a) Assess the adviser’s training needs in relation to the training standards, particularly should the
adviser’s functions change;
(b) Identify the adviser’s gaps or weaknesses in the preceding year and the areas where training will
be focused;
(c) Set objectives to be met (i.e. the desired changes in the adviser’s knowledge, skills and/or
performance at the end of the training year);
(d) Decide the structure of the continuing training program (including nominating the training
methods);
(e) Assess whether the adviser has met the objectives of the training program; and
(f) Provide feedback sessions with the adviser about their performance.

Keeping Records (PS 146.110)

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It is a licence condition that a licensee must maintain a record of the training (relevant to the provision
of financial services) that each of its representatives has undertaken:
• before that person became a representative
• after that person became a representative

The licensee must be able to obtain that information after reasonable inquiry

To demonstrate compliance with their continuing training obligations, licensees should:


(a) Keep written records of each adviser’s training plan. The records should be updated at least
annually and address the elements contained in [PS 146.109]; and
(b) Keep evidence of their advisers’ continuing training (eg receipts, enrolment records, attendance
lists, and detailed diary notes).

Maintaining Evidence of Continuing Education (PS 146.111)

A licensee can use a variety of ways to maintain evidence of continuing training;

(a) A photocopy of the document indicating the qualification awarded or training undertaken;
(b) A computer or system entry, following sighting of the training evidence
(c) An arrangement with the adviser to hold the qualification certificate.

Group Training (PS 146.112)

ASIC will accept annual continuing training plans that address continuing training on a group basis.

Licensees must:

• Ensure that each individual within the group carries out only the functions and tasks for which
their training has equipped them,
• Continue to assess their advisers’ functions,
• Make changes to their continuing training plans if those functions change,
• Monitor on an ongoing basis,
• Address the steps in PS 146.109.

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Appendix B Acceptable CPD Content
Context:
When accrediting or designing programs relative to the below content, they must be written in the context of
participants being Financial Advisers or members of the Financial Services Industry.

At least 75% of the program content must be made up of the criteria described.

Specialist Knowledge:

1. MANAGED INVESTMENTS
A. Types of products 1) Concept of managed investments
2) Specialist knowledge of the range of products offered under managed
investment schemes, or a specific product offered under a scheme:
a) Property trusts, real estate investment strategies, valuation
techniques, property management
b) Equity trusts, fixed interest trusts
c) Serviced strata schemes
d) Primary production schemes
e) Film schemes
f) Time-sharing schemes
3) Identification of types of risks

B. Taxation 1) Awareness of relevant taxation issues

C. Legal environment – 1) The role of the representative/adviser


disclosure and compliance 2) Relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (e.g. good
faith, utmost good faith, full disclosure of remuneration/fees and any
other conflicts of interest which may influence the adviser)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including our requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)

2. SUPERANNUATION
A. Operation and management of 1) Characteristics and structure of a superannuation product
the superannuation industry 2) Roles played by intermediaries and issuers
3) Types of superannuation products
4) Fee structures/administration and management costs
5) Types of contribution
6) Annuities/pensions, allocated pensions and income stream products
7) Associated risks
8) Structure of superannuation plans management and administration of
superannuation products
9) Preservation rules
10) Investment strategies within superannuation funds (i.e. investment
concepts and strategies)
11) Restrictions on investment strategies

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B. Taxation 1) Impact on investment earnings
2) Employer and employee contributions
3) Benefit payments and expenses
4) Tax deductions
5) Capital gains tax treatment
6) Roll-overs
7) Reasonable benefit limits
8) Superannuation surcharge
9) Social security pension eligibility
10) Retirement planning
11) Death benefits
12) Franking credits

C. Legal environment – 1) The role of the representative/adviser


disclosure and compliance 2) Relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (e.g.
good faith, utmost good faith, full disclosure of remuneration/fees and
any other conflicts of interest which may influence the adviser)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including our requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)

3. DERIVATIVES
A. Operation of securities markets 1) Market participants
2) Roles played by intermediaries
3) Structure and inter-relationships within and between the
securities/derivatives sectors

B. Types of products 1) Range of derivatives


2) Associated risks
3) Investment options using derivatives product

C. Theories of investment, 1) Investment concepts


portfolio management and 2) Investment strategies
management of investment and
risk 3) Identification of types of risk
4) Client risk profile

D. Taxation 1) Awareness of taxation issues relating to derivatives

E. Legal environment – disclosure 1) The role of the representative/adviser


and compliance 2) Relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (e.g.
good faith, utmost good faith, full disclosure of remuneration/fees and
any other conflicts of interest which may influence the adviser’s

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recommendation)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including our requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)
7) Elements of the Registered Representatives Examination (relevant)
8) SFE (Sydney Futures Exchange) or ASX (Australian Stock
Exchange) Operating Rules (where relevant)

4. SECURITIES

A. Operation of securities 1) Market participants


markets 2) Roles played by intermediaries

B. Types of products 1) Range of securities


2) Associated risks
3) Investment options using securities product
4) Alternative products (e.g. derivatives) (where relevant)

C. Theories of investment, 1) Investment concepts


portfolio management and 2) Investment strategies
management of investment
and risk 3) Identification of types of risk
4) Client risk profile

D. Taxation 1) Awareness of taxation issues relating to securities

E. Legal environment – 1) The role of the representative/adviser


disclosure and compliance 2) Relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (e.g.
good faith, utmost good faith, full disclosure of remuneration/fees and
any other conflicts of interest which may influence the adviser’s
recommendation)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including our requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)
7) Stockbroking competency standards (where relevant)
8) Australian Stock Exchange (ASX) Operating Rules (where relevant)

5. INSURANCE
A. General Insurance 1) Types of general insurance products/policies
2) Standard cover (and deviations)
3) Policy wordings
4) Taxes and charges
5) Insurance claims
6) Premium rating/risk selection
7) Reporting
8) Product development
9) Underwriting
B. Life Insurance 1) Types/classes of life insurance products/policies

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2) Standard cover (and deviations)
3) Product development
4) Policy wordings
5) Underwriting
6) Insurance claims
7) Premium rating/risk assessment
8) Investment strategy (investment component of life insurance
products)

C. Insurance Broking 1) Types/classes of insurance products


2) Standard cover and deviations
3) Product development, policy wordings
4) Underwriting
5) Insurance claims
6) Premium rating/risk assessment
7) Types of broking services

6. FINANCIAL PLANNING

A. Theories of investment, 1) Range of financial products


portfolio management and 2) Types of investment products (e.g. cash, fixed interest, property,
management of investment and equities, managed investments)
risk
3) Types of financial risk products (e.g. risk insurance, derivatives)
4) Investment concepts
5) Investment strategies
6) Identification of types of risk
7) Client risk profile
B. Advisory functions 1) The role of financial planner
2) Participants in the advisory services market
3) Range of services provided
4) The financial planning process

C. Legal environment – disclosure 1) The role of the representative/adviser


and compliance 2) Relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (e.g.
good faith, utmost good faith, full disclosure of remuneration/fees and
any other conflicts of interest which may influence the adviser’s
recommendation)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including ASIC’s requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)

D. Taxation 1) The Australian taxation and social security systems


2) Relevant taxation laws and regulations
3) Effects of taxation on particular financial products
4) Effects of taxation on financial strategies of individuals and entities

E. Estate Planning 1) Theory of estate planning (i.e. allowable investments, enduring and
non-enduring powers of attorney, share purchase agreements)

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2) Management and investment strategies
3) Relevant taxation laws and regulations

7. FOREIGN EXCHANGE

A. Operation of Foreign Exchange 1) Market participants


Markets 2) Roles played by intermediaries

B. Types of Products 1) Range of Foreign Exchange products


2) Associated risks
3) Alternative products (eg derivatives) (where relevant)

C. Theories of investment, 1) Identification of types of risk


portfolio management and 2) Client Risk Profile
management of investment and
risk
D. Taxation 1) Awareness of taxation issues relating to foreign exchange products
E. Legal Environment –disclosure 1) The Role of the representative/adviser
and compliance 2) Relevant legal principles (eg Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (eg good
faith, utmost good faith, full disclosure of remuneration/fees and any
other conflicts of interest which may influence the adviser’s
recommendation)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including our requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)

8. DEPOSIT PRODUCTS AND NON-CASH PAYMENT PRODUCTS

A. Types of Products 1) Types of products


2) Product characteristics

B. Legal Environment – disclosure 1) The role of the representative/adviser


and compliance 2) Relevant legal principles (eg Corporations Act, ASIC Act, Privacy
Amendment (Private Sector) Act)
3) The relationship between ethics and regulatory requirements (eg good
faith, utmost good faith, full disclosure of remuneration/fees, and any
other conflicts of interest which may influence the adviser’s
recommendation)
4) Relevant industry standards and codes of conduct
5) Regulators’ guidelines including our requirements in this policy
6) Complaints resolution procedures (external and, if relevant, internal)

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Generic Knowledge:

1. The Economic Environment 1) Characteristics and impact of economic and business cycles
2) Interest rates, exchange rates
3) Inflation
4) Government monetary and fiscal policies

2. Operation of Financial Markets 1) Roles played by intermediaries and issuers


2) Structure and inter-relationships within the financial markets
3) Inter-relationship between industry sectors

3. Financial Products 1) Concept of a financial product – general definition, specific inclusions,


exclusions
2) Types of financial investment products
3) Types of financial risk products (e.g. derivatives, risk insurance
products)

4. Taxation Issues 1) In relation to the products and markets in which they operate

5. Advisory Functions 1) Role of the representative/adviser


2) Participants in the advisory services market
3) Range of services provided
4) Profile and financial information of the client
5) Appropriateness of a risk assessment

6. The Legal Environment and 1) Role of the representative/adviser


Disclosure and Compliance 2) Relevant legal principles (e.g. Corporations Act, FSRA, Trade
Practices Act, etc)
3) The relationship between ethics and regulatory requirements (e.g.
good faith, utmost good faith, full disclosure of remuneration/fees and
any other conflicts of interest which may influence the adviser’s
recommendation)

7. Knowledge of relevant industry Codes of Practice and conduct

8. Knowledge of complaints resolution procedures (internal and external)

9. Knowledge of regulator’s guidelines including the requirements of ASIC’s PS 146

10. Professional Conduct and Ethics

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Generic Skills:

Establish relationship with  A range of communication and interpersonal skills are used to
client establish the knowledge level of client.

 Enquiries in relation to products and services are responded to by


explaining the range of products and services available and their
relevant fee and charging methodology.

 Client is informed of the role of the adviser and the licensee/principal


responsible for the adviser’s conduct.

 Familiarity with the procedures for complaints handling and the


circumstances in which they should be engaged is demonstrated.

Identify clients objectives,  A range of communication and interpersonal skills are used to gather
needs and financial situation clients’ personal, financial and business details.

 Clients needs are identified by encouraging expression of their


objectives and goals (short, medium and long term goals as relevant
to the product).

 Product risk profile of the client is identified.

 Clients expectations of cash flow and relevant taxation obligations


are obtained.

Analyse client objective,  An assessment of client needs is undertaken, utilising all information
needs, financial situation and gathered and taking into account clients product expectations and
risk profile specific needs.

 Clients are consulted throughout the analysis for further clarification


where necessary.

 The need for specialist advice is analysed and/or client is referred to


appropriate adviser for higher level/specialist advice if required.

 Product risk profile of the client is assessed and agreed.

 Understanding of the ASIC identified generic and specialist


knowledge relevant to the products being offered, as detailed in the
Evidence Guide, is demonstrated.

Develop appropriate  An appropriate strategy to provide for identified needs and outcomes
strategies and solutions is determined from analysis of products, client risk profile and
assessment of clients’ needs.

 Relevant research, analysis and product modelling is conducted.

 Appropriate solution (plan, policy or transaction) is drafted for


presentation to client.

Present appropriate strategies  Product knowledge appropriate for the service or product offered is
and solutions to the client demonstrated when presenting the product.

 The proposed transaction is explained and discussed with the client


in a clear and unambiguous way.

 Relevant details, terms and conditions of product/service are


reinforced to client.

 Impacts and possible risks of the solution are disclosed in a clear


and concise manner to the client.

 Client is provided with written supporting documentation and guided

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through the key aspects of the documentation.

Negotiate financial plan /  Concerns and/or issues the client has regarding the proposed
policy / transaction with client plan/policy/transaction are discussed and clarified.

 Confirmation is sought from client that they understand the proposed


plan/policy/transaction.

Co-ordinate implementation of  The clients’ formal agreement to the proposed


agreed plan/policy/transaction plan/policy/transaction is gained.

 Associated fee and cost structures are clearly explained and


confirmation of understanding gained from the client.

 Time frames for execution and processing are clearly explained and
confirmation of understanding gained from the client.

Complete and maintain  Proposal and all other statutory and transactional documents are
necessary documentation completed and signed off by the client.

 Copies of appropriate documentation and the signed agreement are


exchanged.

Provide on going service  Type and form of ongoing service; including reporting on
where requested by client performance and review of plan/policy/transaction is agreed with the
client.

 Fees and costs for ongoing and specifically defined service are
clearly explained and confirmation of understanding gained from the
client.

 On going service is provided as required.

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ADDITIONAL

PERSONAL DEVELOPMENT
CFP Practitioners can accumulate a maximum of 15 CPD points per triennium in the Personal Development
Competency Area.
General Practitioner members can accumulate a maximum of 9 CPD points per triennium in the Personal
Development Competency Area.

Practice Management  Researching and planning practice entry

 Establishing a practice

 Managing practice performance,

 Exiting a practice.

 Key skills and attributes in different practice management roles;

 Strategic business planning

 Developing business plans

 Establishing infrastructure, systems and processes requirements

 Staffing / human resource development

 Client relationship management models and processes

 Financial Systems and Funding

 Risk Management (compliance) Systems

Sales Skills are not appropriate CPD content

Personal Skills Development  Time Management

 Conflict Management

 Interpersonal Communication Skills

 Business Communication Skills

 Presentation Skills

 Leadership Skills

The following content areas are not considered as Continuing Professional Development by the FPA.

- On the job training (eg: company updates, induction programs, software program training)

- Sales Skills

- Basic Product Training (eg: product updates, product performance). Product training is only appropriate
if it covers off on benefits for clients and details the nature of what these are (as covered under the
"know your client" competency).

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Appendix C
SAMPLE - EMPLOYEE EVALUATION AND PERFORMANCE REVIEW

Employee Name:
Supervisor Name:
Job Function/Title: Period covered in this evaluation:

Part 1 – Evaluation of Employee Performance


Supervisor evaluates responsibilities identified in the employee’s job function.

1 = Below 2 = Minimally Meets 3 = Fully Meets 4 = Exceeds 5 = Greatly Exceeds


Standard Standard Standard Standard Standard

Job Function Rating Assessment Measures


(e.g. self-assessment, interviews, customer surveys, etc)

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Part 2 – Additional Comments Related to Employee’s Performance.
This section is completed by the supervisor to provide additional comments to be considered in the performance review. The supervisor
will add anything that is relevant to the employee’s performance not included in Part A . This may include significant contributions the
employee has made during the past year, exemplary strengths, opportunities for improvement and/or specific performance goals or
objectives to be achieved during the next year, etc.

Part 3 – Job Function Review.


A review of the job function should be completed each year, with the understanding that it should be revised if the position changes.

The current position description is an accurate reflection of the current responsibilities and performance standards.
The position description is revised to reflect changes in the position.

Part 4 – Professional Development/Training Plan.

Yes, a professional development/training plan has been completed for this employee.
No, a professional development/training plan has not yet been completed for this employee.

Signature of Employee: Date

Signature of Supervisor: Date

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Appendix D: PROFESSIONAL DEVELOPMENT/TRAINING PLAN
Key Actions:
• Identify goals or development needs (generally derived from the performance evaluation).
• Identify desired changes in adviser’s knowledge, skill and/or performance.
• Establish what steps the adviser and/or supervisor will take to attain goals and address needs.
• Establish the time frame in which each step should be completed.

Priority Statement of development needs to be Statement of objectives to be met Recommended development Estimated time
addressed during the year. (desired changes in adviser’s knowledge, skill techniques, methods or strategies to frame.
A-High and/or performance) accomplish stated goals/needs.
B-Medium
C-Low

Signature of Employee: Date

Signature of Supervisor: Date

Note: The Annual Training Plan can be adapted for group training where a group of advisers have like job functions.

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Appendix E: FPA CPD REGISTER

Date Program Course Accreditation Competency CPD


Completed Title Provider No. Code Points
(if applicable)

Total CPD Points:


Competency Codes:
Generic Knowledge Generic Skill Specialist Knowledge Additional
A1 - The Economic Environment B1 - Establish Relationship with client C1 - Managed Investment D1 - Practice Management
A2 - Operation of Financial Markets B2 - Identify client needs C2 - Superannuation D2 - Personal Development
A3 - Financial Products B3 - Analyse client needs C3 - Derivatives
A4 - Taxation Issues B4 - Develop strategy C4 - Securities
A5 - Advisory Functions B5 - Present strategy C5 - Insurance
A6 - Legal Environment/Disclosure/Compliance B6 - Negotiate Plan C6 - Financial Planning
B7 - Implement Plan C7 - Foreign Exchange
B8 - Documentation requirements C8 - Deposit Products & non-cash payment products
B9 - Ongoing Service
Please Note: CPD Register does not need to be forwarded to FPA unless requested.

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Appendix F: FPA Professional Reading Journal
List down in chronological order: Outline/document how the reading was applied and resulted in Date Reading CPD Points
Authors Name; enhanced financial planning technical knowledge, and Completed Allocated
Title of book, journal, newspaper; improved services to current and future clients. (1 point per
Name of Publisher; hour)
Place of Publication;
Year of Publication;
Page Reference(s).

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Appendix G: Checklist – Seminars / Presentations / Online / Video
This checklist should also be applied to conferences/conventions with seminar/presentation modules.

Step 1. Collect the following materials for activity being accredited:

⃞ A structured outline, agenda or timetable of the program. This should contain the program title and duration of
each session to be delivered.

⃞ A copy of the Seminar / Presentation / Online / Video materials.

⃞ A copy of the evaluation (if applicable).

⃞ An outline of the developer/facilitator’s qualifications and experience in Financial Services or related industry.

Step 2. Using the materials collected ascertain whether the activity meets the following criteria:

⃞ Has a clearly identified structure or agenda.

⃞ Has clearly identified aims and objectives.

⃞ Is developed/presented by subject matter experts.

⃞ The content is current and up-to-date.

⃞ The content contributes to the financial planner’s knowledge and skills.

⃞ Avoids inclusion of material which is not specific/tailored to financial planners.

⃞ Evidence of completion of the program is provided to participants.

CPD Points Total:

Accreditation Date:

Accreditor’s Name:

Review Date:

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CPD Point Allocation Generic Knowledge:

A. The Economic Environment


Specialist Knowledge
....... Characteristics and impact of economic & business cycles
1 . Managed Investments
....... Interest rates, exchange rates
....... Types of products
....... Inflation
....... Taxation
....... Government monetary and fiscal policies
....... Legal environment – disclosure & compliance
B. Operation of Financial Markets
2. Superannuation
....... Roles played by intermediaries & issuers
....... Operation & management of the superannuation
....... Structure and inter-relationships within the financial markets
industry
....... Inter-relationship between industry sectors
....... Taxation
....... Legal environment – disclosure & compliance C. Financial Products

3. Derivatives ....... Concept of a financial product – general definition, specific


inclusions, exclusions
....... Operation of securities markets
....... Types of financial investment products
....... Types of products
....... Types of financial risk products (e.g. derivatives, risk insurance
....... Theories of investment, portfolio management & products)
management of investment & risk
D. Taxation Issues
....... Taxation
....... Legal environment – disclosure & compliance ....... In relation to the products & markets in which they operate

4. Securities E. Advisory Functions

....... Operation of securities markets ....... Role of the representative/adviser

....... Types of products ....... Participants in the advisery services market

....... Theories of investment, portfolio management & ....... Range of services provided
management of investment & risk ....... Profile and financial information of the client
....... Taxation ....... Appropriateness of a risk assessment
....... Legal environment – disclosure & compliance
F. The Legal Environment & Disclosure & Compliance
5. Insurance
....... Role of the representative/adviser
....... General Insurance
....... Relevant legal principles (e.g. Corporations Act, FSRA, Trade
....... Life Insurance Practices Act, etc)
....... Insurance Broking ....... Knowledge of relevant industry Codes of Practice and conduct
....... Knowledge of complaints resolution procedures (internal and
6. Financial Planning external)
....... Theories of investment, portfolio management & ....... Knowledge of regulator’s guidelines
management of investment & risk ....... FPA Rules of Professional Conduct & Code of Ethics
....... Advisery functions ....... Other

....... Legal environment – disclosure & compliance


Generic Skills:
....... Taxation
....... Establish relationship with client
....... Estate Planning
....... Identify clients objectives, needs & financial situation
7. Foreign Exchange
....... Operation of Foreign Exchange Markets ....... Analyse client objective, needs, financial situation and risk profile

....... Types of Products ....... Develop appropriate strategies and solutions


....... Theories of investment, portfolio management & ....... Present appropriate strategies & solutions to the client
management of investment & risk
....... Taxation ....... Negotiate financial plan / policy / transaction with client

....... Legal environment – disclosure & compliance ....... Co-ordinate implementation of agreed plan/policy/transaction

....... Complete & maintain necessary documentation


8. Deposit Products & Non-cash Payment Products
....... Types of Products ....... Provide on going service where requested by client

....... Legal environment – disclosure & compliance


Additional:

....... Practice Management


....... Personal Development

© FPA FPA CPD Policy Page 48


Version: August 06
Checklist – Workshops
This checklist should also be applied to workshop modules.

Step 1. Collect the following materials for all workshops being accredited:

⃞ A structured outline, agenda or timetable of the program. This should contain the program title and duration of
each session to be delivered.

⃞ A copy of the leader’s guide or course notes.

⃞ A copy of the participant materials. (including examples of case studies and scenarios used or referred to during
the program)

⃞ A copy of the course evaluation.

⃞ Copies of formal assessments (if applicable).

⃞ An outline of the facilitator and/or course developers qualifications and experience in Financial Services or related
industry.

Step 2. Using the materials collected ascertain whether the workshop meets the following criteria:

⃞ Has a clearly identified structure or agenda.

⃞ Has clearly identified aims and objectives.

⃞ Is developed by qualified subject matter experts.

⃞ Is well structured and follows a logical format that promotes adult learning principals.

⃞ The content is current and up-to-date.

⃞ The content contributes to the financial planner’s knowledge and skills.

⃞ Avoids inclusion of material which is not specific/tailored to financial planners.

⃞ Course participants receive course materials (where appropriate) that include worked examples, participant
activities, etc that promote action based learning.

⃞ A course evaluation to be administered and collected at the end of the program with results to be collated and
acted upon.

⃞ Evidence of completion of the program is provided to participants.

CPD Points Total:

Accreditation Date:

Accreditor’s Name:

Review Date:

© FPA FPA CPD Policy Page 49


Version: August 06
Appendix H: Sample Certificate

Logo

This is to certify that

has completed:

on:

Addressing the following competencies:

FPA CPD Points:


Signed:
Issue date:

Please retain this document for a minimum of 5 years for audit purposes

© FPA FPA CPD Policy Page 50


Version: August 06