Date posted: 22/06/2020

How to satisfy FASEA’s CPD requirements

Handy hints to help you fulfil your CPD requirements

In brief

  • Each adviser is required to complete 40 hours of ‘qualifying’ CPD per year
  • Advisers who operate under their own AFSL are able to self-assess their CPD requirements which includes the time taken to deal with any ethical dilemmas and challenges

Guidance available on what is a 'qualifying' CPD activity

CA ANZ together with the Financial Planning Association (FPA) has prepared these frequently asked questions to help you comply with FASEA's new CPD requirements.

What do you have to comply with?

The Corporations Act 2017 (the Act) requires that all individuals identified as a 'relevant provider' are required to meet the requirements for continuing professional development set by FASEA. These new rules started on 1 January 2019, so many of you will already be complying with these new rules.

What are the options for your CPD 'year'?

When the new CPD regime kicked in on 1 January 2019, you had 2 options for your CPD year:

  1. A 12 month calendar CPD year or
  2. An initial 18 month pro rata CPD year to 30 June 2020, which then aligns with CPD requirements for many professional member organisations.  With this option, you need to complete a once-off 60 hours of CPD by 30 June 2020, now extended for three months.. 

What is required of you as an individual adviser?

Each adviser is required to complete 40 hours of 'qualifying' CPD per CPD year, 70% of which must be approved by your licensee ie. 28 hours out of 40 (or 42 hours out of 60)

Subject area

CPD year to
31 December 2019

CPD 'year' to
30 June 2020

Technical

5 hours

7.5 hours

Client care & practice

5 hours

7.5 hours

Compliance & consumer protection

5 hours

7.5 hours

Professionalism and ethics

9 hours

13.5 hours

Please note that no more than:

  1. 4 hours (or 6 hours) of professional reading and
  2. 30 hours (or 45 hours) of tertiary study can be included

Also, please remember that CPD cannot be carried forward.  You must ensure that you complete the required hours every year.

What is required of you as a licensee?

As a licensee, you are required to have a CPD Policy that covers your advisers – this must be published digitally in a place that is accessible to all advisers. In addition, you must have a CPD plan logged for each of your advisers, noting how they will meet the CPD requirements for each CPD year.  These will need to be refreshed annually.

If you do not currently have a policy, an option is to download a copy of the FPA CPD policy and CPD plan template from their website and adopt these.

You are also required to assess 70% of qualifying CPD for your advisers.  To achieve this, you can use externally assessed CPD and/or you can assess CPD yourself.

How do you decide what is 'qualifying' CPD activity'?

Qualifying CPD has to meet a range of requirements set by FASEA and is outlined in their Legislative Instrument: Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018.

The instrument also outlines how those who operate under their own AFSL are able to self-assess their CPD requirements which can include the time taken to deal with advice related ethical dilemmas and challenges.

An activity is a 'qualifying' CPD activity' if it is:

  1. Delivered at an appropriate level - typically this means that the information is at a level that is challenging to the adviser and relevant to their area of practice.
  2. Delivered by an individual with appropriate expertise – a judgement call will need to be made as to whether the presenter or content creator has the experience and knowledge to educate on the topics in question
  3. In an appropriate subject area that is related to the provision of financial advice.  This has caused the greatest challenge to the profession, because subject matter that was previously acceptable CPD – such as how to market a business, development of leadership skills or what's involved in a tax audit is no longer considered qualifying CPD under the narrow definition provided by FASEA. 

What CPD activities can be approved by responsible licensees?

If you are a licensee, you will need to specify what is considered appropriate licensee approved CPD for your advisers to satisfy the required 28 hours (70% of 40 hours for a calendar CPD year) or 42 hours (70% of 60 hours for a 30 June 2020 CPD year). For those who have 70% of their qualifying CPD assessed by their licensee, the remaining 30% must be assessed by the adviser as 'qualifying CPD'.

For those who are self-licensed, 100% of 'qualifying CPD' can be self-assessed using the guidelines outlined above. In order to self-assess, you will need to keep a record of the material covered, in which area it enhances your professional development and the time taken for the qualifying CPD activity.

What records do you need to keep?

You will need to keep a logbook of all CPD completed.  Please note that even if you use a CPD tracking tool to log your CPD, sound compliance practice would see you downloading your CPD record to a personal drive on an annual basis for safe-keeping purposes. 

FASEA CPD hours can be tracked in conjunction with hours required from other professional member organisations and can be included in one succinct register.

A template for FASEA's CPD record-keeping requirements can be found on the FASEA website.

FASEA FAQs

We have prepared frequently asked questions to assist members to navigate and meet FASEA’s education requirements.

Access the FAQs here

FPA CPD Policy and templates

If you do not currently have a policy, an option is to download a copy of the FPA CPD policy and CPD plan template from their website and adopt these.

FPA website

FASEA's CPD record-keeping template

A template for FASEA’s CPD record-keeping requirements can be found on the FASEA website.

Download here

FASEA announces three month relief

FASEA announces a three month CPD relief for advisers in recognition of COVID-19 business disruption

Read more

Financial Advice Industry group on my CA

Join the discussion and stay up to date with what you need to know and what action you need to take on the FASEA developments.

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