21 December 2018
FASEA releases final Legislative Instrument for Continuing Professional Development Standard
FASEA has registered the Legislative Instrument and Explanatory Statement for its Continuing Professional Development Standard on the Federal Register of Legislation. The Determination was informed through consultation with stakeholders in July and August 2018 and through 24 formal submissions during FASEA’s consultation process in November 2018.
Under the standard, advisers are required to complete 40 hours of CPD each year of which 70% will need to be approved by the licensee (including a maximum 4 hours of professional reading).
The minimum hours per CPD category are technical (5 hours), client care and practice (5 hours), regulatory compliance and consumer protection (5 hours) and professionalism and ethics (9 hours). The balance of 16 hours will consist of qualifying CPD and is available to allocate to areas of advisers’ greatest need which may include, for example, technical competence or industry specialisation
Stakeholder feedback during the consultation raised a number of suggestions FASEA has adopted in the final Legislative Instrument including:
– a transition period to 31 March 2019 for documentation of CPD Policies and Plans;
– an increase in the number of formal study hours that may count towards CPD from 25 to 30 hours;
– Part timers with licensees prior written consent being entitled to a 10% reduction to 36 hours required CPD while still being required to cover minimum knowledge areas;
– recognition that CPD may cover more than one knowledge area and may count across multiple CPD areas as long as there is no double counting of hours; and
– licensees being able to maintain CPD records on behalf of their advisers.
“We thank stakeholders for their constructive input during the consultation process for FASEA’s continuing professional development determination and are pleased to have reflected this input where appropriate in the 0Legislative Instrument” FASEA Chief Executive Stephen Glenfield said.
The Legislative Instrument and Explanatory Statement can be viewed here