CPD Planning. March 2014

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Joel Gibbs
6 years ago
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1 March 2014

2 AGENDA New National Certificate of Financial Services (L5) New Code of Professional Conduct Continuing Professional Development Available Courses

3 Objectives Understand the difference between the current National Certificate structure and the proposed new structure Understand how the new structure may affect your training plans Understand your learning and development obligations as a Financial Adviser under the Code of Professional Conduct and the Financial Advisers Act Be able to put together a professional and structured learning and development plan

4 Current National Certificate SSA: Core knowledge (15 credits) Legislation, taxation, estate planning, industry participants, advice process, generic product knowledge. Exam and workplace evidence SSB: Capstone Knowledge (5 credits) Code of conduct, disciplinary committee & penalties, legislation. Multi choice exam. SSC: Professional Practice (18 credits) Workplace evidence to meet required PC s, and conduct a competency discussion with assessor SSE (13 credits) Residential Property Lending 2 unit standards, lending theory and principles exam and workplace evidence. SSE (need 12 credits) Personal Risk Management Life Insurance Health Insurance F&G Insurance

5 New NZ Certificate Financial Advice strand Core knowledge Legislation, taxation, estate planning, industry participants, advice process, generic product knowledge, some of the old SSB Residential Property Lending strand Insurance strand Investment strand To attain the New Zealand Certificate Financial Services you need to attain the core knowledge standard set, and AT LEAST one other strand. However, if you are giving financial advice, you will need to complete the advice strand as well as the strand in your specialty area. You can complete more than one strand if it is appropriate for your area(s) of advice.

For example: As an adviser, currently you will complete A, B and C If you are a mortgage adviser, you will then complete Set E, the residential property lending strand If you are a risk adviser, you

6 For example: As an adviser, currently you will complete A, B and C If you are a mortgage adviser, you will then complete Set E, the residential property lending strand If you are a risk adviser, you will complete sufficient unit standards from Set E, Risk If you are an investment adviser, you complete Set D, Investments Under the new Certificate, you will complete the Core Knowledge standard set You will also complete the financial advice strand and the appropriate specialist advice strand

7 To remember: You can currently access training for the existing structure The qualifications body (SKILLS) will accept enrolments and completion for a certain period (likely to be 2 years) However, the regulatory body may require a shortened time frame Training providers may only provide training under the old structure for a set amount of time, likely to be less than the qualifications body will accept completion but this will be up to each provider.

Code of Professional Conduct: Sets out obligations for authorised financial advisers Registered financial advisers not bound by the Code- however do have obligations under

8 Code of Professional Conduct: Sets out obligations for authorised financial advisers Registered financial advisers not bound by the Code- however do have obligations under the Financial Advisers Act The Code standards are a good guideline for registered financial advisers in terms of the overall minimum expectations of a professional adviser

Code of Professional Conduct: Code standard 14: Before providing a financial adviser service, an authorised financial adviser must have the competence, knowledge and skills to provide that service

9 Code of Professional Conduct: Code standard 14: Before providing a financial adviser service, an authorised financial adviser must have the competence, knowledge and skills to provide that service Code standard 17: An authorised financial adviser must maintain and keep current a professional development plan for each CPD period. The plan must: Identify areas for improvement in relation to the financial adviser service to be provided Include proposals to make improvements Detail courses, seminars etc where available

10 Continuing CPD requirements: Currently the Code requires a MINIMUM of 20 credits annually 10 structured and 10 unstructured Must be provided by an appropriate body (DAO, QFE, registered training provider) Needs to demonstrate relevance to your area(s) of advice Should encompass technical competencies and other skills

New CPD Requirements: Proposed new Code is a MINIMUM of 30 hours of structured training in a 24 month period It is advisable to stagger this over the period don t leave it until the last few months

11 New CPD Requirements: Proposed new Code is a MINIMUM of 30 hours of structured training in a 24 month period It is advisable to stagger this over the period don t leave it until the last few months to acquire the required credits (it is just over 1CPD a month) Refers to structured professional development rather than relevant to the financial adviser services provided The Code also requires that in addition to no less than 30 hours the AFA must also undertake appropriate training as necessary to maintain their competence at the specified level (L5 Certificate)

Financial Advisers Act 2008 Financial adviser must exercise care, diligence, and skill (1) A financial adviser, when providing a financial adviser service, must exercise the care, diligence, and

12 Financial Advisers Act 2008 Financial adviser must exercise care, diligence, and skill (1) A financial adviser, when providing a financial adviser service, must exercise the care, diligence, and skill that a reasonable financial adviser would exercise in the same circumstances. (2) In determining the degree of care, diligence, and skill that a reasonable financial adviser would exercise, the following matters must be taken into account (without limitation): (a) the nature and requirements of the financial adviser's client (b) the nature of the service provided and the circumstances in which the service is provided; and (c) the type of financial adviser.

13 New CPD Requirements: New Code likely to come in approximately May this year A formal learning and development plan will identify problems or gaps in your competency You can then plan HOW you will address those gaps Unstructured credits are still appropriate (keep reading!) but you are not required to achieve a minimum number of hours Structured credits can only be registered IF they are relevant to your continuing professional development plan

CPD Plan: Put in place at the beginning of the CPD period Review frequently (every three months) Consider new legislation or changes to existing legislation or governance For example the 80% LVR

14 CPD Plan: Put in place at the beginning of the CPD period Review frequently (every three months) Consider new legislation or changes to existing legislation or governance For example the 80% LVR rule or the proposed pensions transfer taxation Consider what the Professional Advisers Associations is providing in terms of training Consider how this might be relevant to your areas of advice

15 CPD Plan: Why is it best practice to have a CPD in place, whether you are obligated to have one under the Code or not? What do other professionals do?

16 CPD Plan Activity: What training might you need? Who can provide this? How is it relevant to your area of advice?

17 CPD Plan in practice: Lending knowledge Refresh knowledge of the eligibility requirements for the Welcome Home loan Attend a seminar Read the information online Lending provider Professional Practice Have a robust complaints process Attend a workshop Develop a plan Store it in office DRS provider External mediator Documentation specialist

CPD Plan Summary: It is about demonstrating relevance and addressing an identified skill gap It is not about going on courses/conference/roadshows just to get a CPD credit what are you actually

18 CPD Plan Summary: It is about demonstrating relevance and addressing an identified skill gap It is not about going on courses/conference/roadshows just to get a CPD credit what are you actually getting out of it? How does your client benefit from the professional development you complete? There are no prescribed requirements to be included in your CPD plan it is up to you as an individual to identify the areas that YOU need to address through appropriate training/upskilling

Learning Opportunities: PAA have an agreement in place with IBANZ for PAA members to access National Certificate and other technical competency training courses Providers technical training (not

19 Learning Opportunities: PAA have an agreement in place with IBANZ for PAA members to access National Certificate and other technical competency training courses Providers technical training (not provider product specific) External courses Professional Development Days Roadshows Conferences External experts As your professional body, the PAA will offer a minimum of 30 structured learning and development sessions over a 2 year period

20 Questions??

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