IFAs should be doing 35 hours of CPD per annum, of which 21 should be structured
But that is about as clear as it gets, because different professional bodies have different standards for different subjects, and firms must make up their own rules on top of the general guidance over minimums provided by the professional bodies.
So how much CPD do you need?
This is one of the most asked questions to the IFAC team, and one that is difficult to explain.
This IFAC View is designed to make the requirements clearer where we can.
The requirements differ dependent on the advice areas involved and also depends on the professional body an adviser is registered or qualified with.
Let us start with the CII. These rules will apply if you are registered with the CII for a Statement of Professional Standing (SPS), and/or you are qualified with any of the following qualifications: Insurance: Cert CII, Dip CII, ACII, FCII, Chartered Insurance Broker/Insurer/Insurance Practitioner, Financial Planning: CertPFS, DipPFS, APFS, FPFS, Chartered Financial Planner. Minimum of 35 hours compulsory CPD per year of which at least 21 hours must be structured CPD
For those who are members of the CISI, CPD requirements are set under two categories.
Category A: CFP Professionals, SPS holders, Accredited Paraplanners (APP). Certificate of Professionalism holders, CISI Chartered members including members looking to become
Chartered and Category B: All other members not in Category A.
Category A members need a minimum of 35 hours compulsory CPD per year of which at least 21 hours must be structured CPD. 3.5 hours of CPD is required to be completed in Ethics (structured or unstructured) and must be recorded on the CISI CPD system. Those holding Certificate of professionalism are required to complete a higher set 5 hours of CPD in Regulation. Risk or Integrity and Ethics.
Category B members need a minimum of 10 hours of CPD per year of which at least 6 must be structured CPD. One hour of CPD must be completed in ethics. CPD must be recorded on the CISI CPD system.
And finally, look at LIBF. If an individual is Chartered, holds an SPS or a Certificate of Professional Achievement (CPA), a minimum of 35 hours compulsory CPD per year of which at least 21 hours must be structured CPD. For those who are Pension Transfer
Specialists an additional 15 hours of Pension Transfer related CPD is required (9 hours need to be structured and 5 hours need to be sourced from outside your firm). If an individual is subject to the IDD, they require a minimum of 15 hours within the minimum 35 hours of CPD required per year.
CeMap Professionals require a minimum of 15 hours of mortgage related CPD per year. If an individual is subject to the IDD, an additional 15 hours of IDD related CPD are required as a minimum, of which 5 hours can go towards the 15 hours required under CeMap Professional.
If an individual is SPS or CPA (with or without Chartered), and CeMAP Professional, 35 hours related to your retail investment adviser role and 15 hours related to the mortgage advice industry. If an individual is subject to the IDD, the minimum 15 hours applies and can go towards 35 required for SPS when carried out in the same 12-month period. Also 5 hours can go towards the 15 hours required for CeMAP Professional.
Insurance Distribution Directive (IDD) CPD. If an individual is subject to IDD only, a minimum of 15 hours in line with the FCA requirements in SYSC 28.2.3.
So, as you can see it s an absolute minefield to work out what is required. Additionally, the CII makes no mention of Pension Transfer and IDD requirements and CISI mentions them but confirms they are not responsible for them. Naturally these two elements are required.
We have to take a view on this, and our recommendations would be as follows:
Please remember these are minimum requirements and it is expected that annual CPD will be in excess of these amounts.
| Financial Adviser | 35 hours of which 21 structured |
| Financial Adviser and PTS | 50 hours of which 30 structured (35 hours of which 21 structured for FA and 15 hours of which 9 structured for PTS) |
| Financial Adviser and IDD | 35 hours of which 21 structured which can include 15 hours IDD. Alternatively, advisers could decide to conduct an extra 15 hours specifically around the IDD, none of which needs to be structured |
| Financial Adviser and Mortgage Adviser | 50 hours of which 21 structured (35 hours of which 21 structured for FA and 15 hours for Mortgage) |
| Financial Adviser, Mortgage Adviser and IDD | 50 hours of which 21 structured (35 hours of which 21 structured for FA and 15 hours for Mortgage) to include 15 hours IDD of which 5 hours can count towards 15 hours Mortgage requirement. Alternatively, advisers could decide to conduct an extra 15 hours specifically around the IDD, none of which needs to be structured |
| Financial Adviser, PTS, Mortgage Adviser and IDD | 65 hours of which 30 structured (35 hours of which 21 structured for FA, 15 hours of which 9 structured for PTS and 15 hours for Mortgage) to include 15 hours IDD of which 5 hours can count towards 15 hours Mortgage requirement. Alternatively, advisers could decide to conduct an extra 15 hours specifically around the IDD, none of which needs to be structured |
| Mortgage Adviser | 15 hours |
| Mortgage Adviser and IDD | 15 hours Mortgage plus 15 hours IDD of which 5 hours can count towards 15 hours mortgage requirement |
| IDD only | 15 hours IDD related CPD. None of which needs to be structured, although the recommendation would be to include some |
Please remember these are minimum requirements and it is expected that annual CPD will be in excess of these amounts.