FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LTD

© FPA FPA CPD Policy

Version: August 06

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 Ethics Training

At least 5 points to cover compliance related CPD

INCLUDING

3 points to ethics content.

At least 5 points to cover compliance related CPD

INCLUDING

3 points to ethics content.

Technical Training related to PS146 Competency areas

Competency areas identified in the individual training plan.

Competency areas identified in the individual training plan.

Personal Development Training

Not in excess of 15 points per triennium.

Not in excess of 9 points per triennium.


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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 Competence

(PS 146.109b)

Determine/Review Job Function

(PS 146.109a)

Annual Training Plan

(PS 146.109c & 146.109d)

Undertake Performance Review

(PS 146.109f)

Record Activities & Outcomes

(PS 146.110)

Ongoing Supervision & Feedback

(PS 146.109e)

(a) Determine adviser’s job description is current and adequately reflects the financial services they provide.

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

(c) Determine objectives to be met (i.e. the desired changes in the adviser’s knowledge, skills and/or performance at the end of the review period).

(d) Decide the structure of the training plan (including nominating appropriate training methods).

(f) Assess whether the adviser has met the objectives of the training plan;

(g) Provide feedback sessions with the adviser about their performance; and

(h) Review and update job descriptions/duties where applicable

(e) Informal feedback on performance should be given on an ongoing basis as part of the supervision and monitoring process.


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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 [email protected] 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

Informal Accreditation

Programs submitted to FPA for accreditation

FPA allocates CPD points, Accreditation Number and relevant competency areas

Programs can be marketed as FPA Accredited

CPD Accreditor “informally” assesses program for CPD points

Programs cannot be marketed as FPA Accredited

Attends or is provided with non-accredited program details (non-accredited programs have no CPD points or Accreditation Number)

CPD Accreditor

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


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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

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

1.5 points per hour (excluding break periods)

Participation in FPA education and technical committees

1 point per hour, per committee

Tertiary Courses in Financial Planning (beyond minimal education requirements)

Up to 15 points per financial planning subject (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 Financial Planning subject

1 point per hour

Presenting/Teaching/Lecturing/coaching/mentoring (repeat presentations do not receive CPD points)

1 point per hour

Writing or reviewing technical articles, papers or books on financial planning for publication (repeat publications do not receive CPD points)

1 point per hour


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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 – disclosure and compliance

1) The role of the representative/adviser

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 the superannuation industry

1) Characteristics and structure of a superannuation product

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




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)




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, portfolio management and management of investment and risk

1) Investment concepts

2) Investment strategies

3) Identification of types of risk

4) Client risk profile

D. Taxation

1) Awareness of taxation issues relating to derivatives

E. Legal environment – disclosure and compliance



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)




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 markets

1) Market participants


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)






D. Taxation

1) Awareness of taxation issues relating to securities

E. Legal environment – disclosure and compliance



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) 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, portfolio management and management of investment and risk

1) Range of financial products

2) Types of investment products (e.g. cash, fixed interest, property, equities, managed investments)

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





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






5) Regulators’ guidelines including ASIC’s requirements in this policy


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 Markets

1) Market participants


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

2) Associated risks

3) Alternative products (eg derivatives) (where relevant)



2) Client Risk Profile

D. Taxation 1) Awareness of taxation issues relating to foreign exchange products

E. Legal Environment –disclosure and compliance

1) The Role of the representative/adviser

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 and compliance

1) The role of the representative/adviser 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 Disclosure and Compliance

1) Role of the representative/adviser 2) Relevant legal principles (e.g. Corporations Act, FSRA, Trade

Practices Act, etc)


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 client

� A range of communication and interpersonal skills are used to 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, needs and financial situation

� A range of communication and interpersonal skills are used to gather 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, needs, financial situation and risk profile

� An assessment of client needs is undertaken, utilising all information gathered and taking into account clients product expectations and 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 strategies and solutions

� An appropriate strategy to provide for identified needs and outcomes 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 and solutions to the client

� Product knowledge appropriate for the service or product offered is 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 / policy / transaction with client

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

� Confirmation is sought from client that they understand the proposed plan/policy/transaction.

Co-ordinate implementation of agreed plan/policy/transaction

� The clients’ formal agreement to the proposed 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 necessary documentation

� Proposal and all other statutory and transactional documents are completed and signed off by the client.

� Copies of appropriate documentation and the signed agreement are exchanged.

Provide on going service where requested by client

� Type and form of ongoing service; including reporting on 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 Standard

2 = Minimally Meets Standard

3 = Fully Meets Standard

4 = Exceeds Standard

5 = Greatly Exceeds 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

A-High B-Medium C-Low

Statement of development needs to be

addressed during the year.

Statement of objectives to be met

(desired changes in adviser’s knowledge, skill and/or performance)

Recommended development

techniques, methods or strategies to accomplish stated goals/needs.

Estimated time

frame.

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

Completed

Program

Title

Course

Provider

Accreditation

No. (if applicable)

Competency

Code

CPD

Points

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: Authors Name;

Title of book, journal, newspaper; Name of Publisher; Place of Publication; Year of Publication; Page Reference(s).

Outline/document how the reading was applied and resulted in enhanced financial planning technical knowledge, and

improved services to current and future clients.

Date Reading Completed

CPD Points Allocated (1 point per

hour)


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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 Specialist Knowledge 1 . Managed Investments

....... Types of products

....... Taxation

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

2. Superannuation

....... Operation & management of the superannuation industry

....... Taxation


3. Derivatives

....... Operation of securities markets


....... Theories of investment, portfolio management & management of investment & risk

....... Taxation


4. Securities

....... Operation of securities markets



....... Taxation


5. Insurance

....... General Insurance

....... Life Insurance

....... Insurance Broking

6. Financial Planning


....... Advisery functions


....... Taxation

....... Estate Planning 7. Foreign Exchange

....... Operation of Foreign Exchange Markets

....... Types of Products


....... Taxation


8. Deposit Products & Non-cash Payment Products

....... Types of Products


Generic Knowledge: A. The Economic Environment

....... Characteristics and impact of economic & business cycles

....... Interest rates, exchange rates

....... Inflation

....... Government monetary and fiscal policies B. Operation of Financial Markets

....... Roles played by intermediaries & issuers

....... Structure and inter-relationships within the financial markets

....... Inter-relationship between industry sectors C. Financial Products

....... Concept of a financial product – general definition, specific inclusions, exclusions

....... Types of financial investment products

....... Types of financial risk products (e.g. derivatives, risk insurance products)

D. Taxation Issues

....... In relation to the products & markets in which they operate

E. Advisory Functions

....... Role of the representative/adviser

....... Participants in the advisery services market

....... Range of services provided

....... Profile and financial information of the client

....... Appropriateness of a risk assessment

F. The Legal Environment & Disclosure & Compliance

....... Role of the representative/adviser

....... Relevant legal principles (e.g. Corporations Act, FSRA, Trade Practices Act, etc)

....... Knowledge of relevant industry Codes of Practice and conduct

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

....... Knowledge of regulator’s guidelines

....... FPA Rules of Professional Conduct & Code of Ethics

....... Other

Generic Skills:

....... Establish relationship with client

....... Identify clients objectives, needs & financial situation

....... Analyse client objective, needs, financial situation and risk profile

....... Develop appropriate strategies and solutions

....... Present appropriate strategies & solutions to the client

....... Negotiate financial plan / policy / transaction with client

....... Co-ordinate implementation of agreed plan/policy/transaction

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

....... Provide on going service where requested by client

Additional:

....... Practice Management

....... Personal Development


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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:


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Appendix H: Sample Certificate

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

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