Continuing Professional Development...CFP CM, CERTIFIED FINANCIAL PLANNER and are certification...

Continuing Professional Development

Supporting professional standards in Financial Planning

CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by Financial Planning Standards Board

Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB.

Continuing Professional Development Successful professionals in many sectors have long realised the importance of gaining new knowledge, improved skills and developing personal qualities through Continuing Professional Development (CPD). In essence, CPD is simply considered part of any good professional practice. As you move around the ‘Competence Cycle’, the role of CPD is to ensure that you maintain your hard won competence. After all, Financial Planning is a technical and complex area, where changes are frequent. Only a properly structured and appropriately documented CPD Programme can maintain your competence in this area. It has long been a condition that CERTIFIED FINANCIAL PLANNER

CM Professionals commit to an

appropriate CPD scheme and sign a declaration to this effect on an annual basis. The IFP CPD scheme works alongside your existing Training & Competence (T&C) scheme. It is not designed to involve you in lots of surplus work. The promotion of professional standards within Financial Planning is core to the philosophy of the IFP. CPD is considered highly important in ensuring IFP members: Keep abreast of current regulatory and

legislative changes; Meet all regulatory requirements and

standards; Offer clients up to date and effective advice; Operate within efficient and profitable

businesses The IFP provides a CPD framework through which members can maintain, update and develop their competence in areas related to the professional practice of Financial Planning. Not only will this

ensure that your skills, knowledge and professionalism are up to date but it will also comply with the FCA regulatory changes taking place from 1 January 2013.

CPD defined Continuing professional development (CPD) is designed to develop your expertise within your individual role, and help you maintain that edge throughout your career. It can be defined as: “The systematic maintenance, improvement and broadening of knowledge, experience and skills, and the development of personal qualities helpful in the execution of professional duties throughout a career.” In 2011, IFP was formally recognised by the FCA as an accredited body, to help advisers attain and maintain professional standards. The IFP CPD scheme meets the FCA CPD requirements. Where members select IFP as their accredited body and meet the requirements, IFP will issue a Statement of Professional Standing (SPS). The Financial Planning profession is changing and expanding rapidly. This makes it vital that we support members to develop all the knowledge and skills they need for the duration of their careers, and beyond the minimum level of qualifications required. The IFP CPD Scheme and online log enables members to demonstrate their ongoing commitment to continuing professional development to both their employer and the regulator, as well as to us as a professional body and an Accredited Body, if requested.



Membership Categories (Details on request) Category Designation Fellows of the IFP FIFP CFP

CM Professionals CFP

CM

Accredited Paraplanner APP Associate Members AIFP Retired Members None Other Members None

Annual CPD requirements for IFP members From 1 July 2013, the IFP CPD requirements are amended to incorporate the Financial Conduct Authority’s (FCA) new minimum requirements. The scheme is therefore stated in hours rather than points and there is a new minimum amount of structured CPD as follows: CFP

CM Professionals and Fellows of the IFP are

required as a condition of IFP membership to attain a minimum of 50 hours of CPD, of which a minimum of 21 hours must be structured.

Accredited Paraplanners are required to attain

a minimum of 35 hours of CPD, of which 21 must be structured. Accredited Paraplanners who are also CFP Professionals must meet the CFP Professional requirement.

Associate Members (AIFPs) are required to

attain a minimum of 35 hours of CPD, of which 21 must be structured.

Retired members do not need to meet the

annual CPD requirements unless they still

want to use their designation, in which case

they must complete the CPD requirements for

the relevant membership category.

All other members are not required to

undertake CPD.

What areas should CPD activities cover? CPD should cover each of the following areas: Professional Standards and Compliance Ethics Technical Knowledge Personal Development Practice Management (where appropriate)

The particular route that you will need to take to retain competence will, of course, be different for each individual, and it is likely to change from year to year in line with your role and personal requirements as well as those of your firm. Each area should be addressed as appropriate for your role and we would consider it unlikely that all of your CPD will come from just one area. When considering CPD activities, three issues should be addressed to determine its suitability: Content – is it appropriate? Context – is the content presented in a

context appropriate to Financial Planners? Educational Level - is the content at the

appropriate level?

Structured and unstructured CPD

It is important that all members who are required to undertake a minimum amount of structured CPD understand the types of activities that are classed as structured and those that are not. Structured CPD is designed to achieve a defined learning outcome and, unlike unstructured CPD, is capable of being independently verified. Structured activities require a contribution of 30 minutes or more and do not have to include an examination or test. Examples of structured CPD IFP events such as Annual Conference. IFP Branch Meetings Seminars/presentations/conferences Workshops/training courses Online training programmes, including web-

based seminars and e-learning Writing technical articles, papers or books on

Financial Planning for publications Course material design and development in a

Financial Planning subject Presenting/teaching/or lecturing in a Financial

Planning subject (repeat presentations do not count)

Examples of unstructured CPD Professional reading Study for professional qualifications Participation in IFP education and technical

committees Watching videos or webcasts



Annual CPD Requirements from 1 July 2013

CFPCM

Professionals

& Fellows Accredited Paraplanners* & Associate Members

Total minimum annual CPD required 50 hours 35 hours

Of which:

Structured CPD (minimum): 21 hours 21 hours

- Personal development A maximum of 10 hours A maximum of 6 hours

- Professional standards & compliance (minimum)

2.5 hours

- Ethics (minimum) 2.5 hours

- Technical knowledge (no minimum or maximum)

To reflect the competence areas identified in your training and competence plan

- Practice management (where relevant) To reflect the requirements identified in an individual’s training and competence

* Accredited Paraplanners who are also CFP

CM Professionals must meet the CPD requirements for CFP

Professionals.

Remember that your gap-fill activities will also count towards your annual CPD requirement.



Compulsory elements and acceptable CPD activities Personal Development You should also note that within the core area of

Personal Development, maximum levels of

accepted CPD hours have been set (10 hours for

CFPCM

Professionals & Fellows and 6 hours for

other members). Examples of Personal

Development areas can be communication skills,

managerial skills, public speaking skills, coaching

skills, IT skills and so forth.

Professional Standards and Compliance (compulsory) All IFP members are required to complete at least 2.5 hours of CPD per annum on Professional Standards and Compliance, which could include: Professional Conduct Risk Management Disclosure Ethics (compulsory) All IFP members are required to complete at least 2.5 hours of CPD per annum in Ethics, which might include, but is not limited to, theoretical knowledge and application of ethical frameworks including the IFP code of ethics and professional practice, ethical theory, ethical practices and treating customers fairly. Technical Knowledge Due to the holistic nature of Financial Planning, the IFP would expect CPD Technical Knowledge content across the following areas where appropriate: 1. Taxation 2. Insurance 3. Investment 4. Retirement, Savings and Income Plans 5. Law 6. Financial Analysis 7. Debt 8. The Economic and Regulatory Environment 9. State Benefits 10. Behavioural Finance Source: Financial Planner Standards Board – Financial Planner Competency Profile

Practice Management CPD activity need only be undertaken in this area if it is relevant to your role. The areas covered could include, but are not limited to the following: Defining Business Strategy

Marketing Transitioning your Business Staff structuring and Recruitment Financial Management Business Development Supervision and Management Annual CPD Requirements

Acceptable CPD activities The IFP considers the following activities acceptable for CPD purposes: Attending seminars and presentations. Attendance at branch meetings. Participating at workshops with or without

assessment activities. Attending conferences on Financial Planning

and related topics. Attending courses presented by educational

institutions and professional bodies that cover specialist knowledge.

Serving on technical/education committees. Working as a lecturer, facilitator or assessor

related to Financial Planning units (repeat presentations do count).

Design and developing of course material in a relevant Financial Planning topic.

Writing technical articles, papers or books on Financial Planning for publication.

Undertaking CPD online programs, distance education courses on Financial Planning, reviewing Financial Planning educational videos, audiotapes and computerised learning packages.

Reading and studying of Financial Planning topics.

Carrying out structured technical research for clients.

Studying for and completing professional examinations and qualifications

The above list should be considered as guidance only. You must determine what is appropriate for your needs, as part of your firm’s T&C requirements, bearing in mind the minimum requirements of FCA for registered advisers. The IFP recommends that members undertake a variety of different activities when planning CPD. This ensures that existing competence in key areas is maintained, while possibly extending your competence into new areas as required.



Non-accredited CPD activities Within your CPD record, you can include activities that are not currently accredited by the IFP. However, the content of the activity should be relevant to the area in which you are looking to undertake CPD. Remember that you must be able to explain how any non-accredited activities included are relevant to your current job function or development plan. The following information or documents must also be maintained for all non-accredited activities: Programme content Programme structure Copies of any assessments undertaken It is strongly recommended that all members, particularly CFP

CM Professionals or Fellows,

undertake accredited activities to ensure they meet minimum IFP CPD criteria. CPD activities offered by other professional bodies can be included on your IFP CPD log. Members who complete CPD records for other Professional Bodies may submit those records to the IFP if requested; it will not be necessary to duplicate your CPD records.

Temporary suspension of CPD requirements Individuals may request a temporary suspension of CPD requirements due to extenuating circumstances such as medical, disability or parental leave. The request must be made in writing and submitted with supporting documents to the IFP Education Team. All cases will then be reviewed on an individual basis. Application for suspension of CPD requirements cannot be sought due to an increase in workload Please note: if you are a retail investment adviser that you will still need to meet the FCA’s minimum CPD requirements each year to be able to apply for your Statement of Professional Standing. If suspension is agreed, the ongoing IFP membership fee but not the CFP certification fee will still be applicable. During this period of suspension, members (including CFP

CM

Professionals and Fellows) will not be able to use the relevant designation until CPD is resumed.

Record Keeping CPD records (or logs) may be submitted using the IFP online CPD log, which can be accessed at http://www.financialplanning.org.uk/cpd-online. Using the system keeps all your CPD data in one place and cuts down on the amount of data you

need to enter. For guidance on how to use the online CPD log, please contact the Education Team or sign up for one of our regular webinars. Paper forms can also be downloaded from our website or photocopied from Appendix C. Members may also find useful the Professional Development/Training Plan in Appendix B. All IFP members are required to keep their

supporting documentation for non-accredited activities in the event that they are audited.

Non-accredited programmes require

supporting documentation of: Programme Content Programme Structure Copies of any Assessments undertaken Documentation should be kept for three

years. Each IFP member along with their supervisor where relevant, is responsible for deciding, within these guidelines, what is considered to be appropriate CPD for their role. Registered advisers should be careful to maintain minimum CPD in line with rules for issuance of their SPS. A member's CPD year for recording and audit purposes will be the same as their membership year. For those appointing IFP as their Accredited Body, it will also be the date of their annual SPS.

Audit and appeals process As an Accredited Body IFP has a responsibility to audit at least 10% of members’ CPD records each year. If you are selected for audit:

You will be notified of the audit in writing and asked to send your CPD register to the IFP.

Your CPD register will be reviewed by the IFP Education Department and assessed to ensure the CPD record is acceptable or if any additional information is required.

Within a period of 8 weeks, you will receive confirmation from the IFP regarding the audit and whether any further action is needed.



Deficient Audit Results If your CPD record is not presented in an acceptable format, you will be informed and guidance given as to the action required. You will then be asked to resubmit a revised record in an acceptable format. In the unlikely event that you are unwilling or unable to submit an acceptable CPD record, you would then become subject to the IFP disciplinary procedures. A copy of these procedures is available upon request. If any CPD activities are denied during the audit and a deficiency results, you will be given 90 days to report additional hours to cure the deficiency.

If the deficiency is not amended, you will be sent a deficiency notice. Unsupported or mis-stated CPD reporting is a violation of the IFP’s Code of Ethics and may be grounds for disciplinary action up to revocation of IFP membership and the CFP

CM

certification. If you are a retail investment adviser, this may also mean that IFP will not issue you with a Statement of Professional Standing. PD points online



SECTION THREE: Appendices Appendix A: Examples

Professional Development/Training Plan Example This document is not compulsory, but can be used a tool for planning CPD for the forthcoming year. Alternatively you can register at www.financialplanning.org.uk/cpd and prepare your plan online. Name IFP Membership No. CPD Period

Priority: A - High B- Medium C – Low

Development Needs

Statement of objectives to be met (desired changes in Financial Planner’s knowledge, skill and/or performance

Recommended development techniques, methods or strategies to accomplish stated goals/needs

Estimated time frame

A Understand how to

use lifetime

cashflows

Be able to use Financial

Planning software to

produce cashflows for

client reports

Attend IFP Financial

Planning workshop

Q1 2012

A Complete the

assessment for

CERTIFIED

FINANCIAL

PLANNERCM

qualification

Meet the entry

requirements

Complete advanced

taxation exams

Prepare for CFP

certification

assessment

April

2012

Oct 2012

B Improve knowledge

of SIPPs

Be confident in the use of

SIPPs

Research e-learning

packages and product

provider workshops

July

2012

Signature Date Supervisor’s Signature Date



IFP CPD Log Example Name: _____________________________________

IFP Membership No.

___________________

CPD Period

__________________

Area of CPD Covered CPD hours

Dat

e Activity Provider

Structured (min 21)

Unstructured (min 14/29)

Total

Personal development (maximum 6/10 hours) Nov

2012

Public Speaking

course Professional Skills Academy

7 0

7

SUB-TOTAL 7 0

7

Professional standards & compliance (minimum 2.5 hours)

Nov

2012

Branch meeting

(Risk

management)

IFP

2 0

2

SUB-TOTAL 2 0

2

Ethics (minimum 2.5 hours)

June

2012

Undertook e-

learning unit

on managing

ethical

dilemmas

IFP 2 0

2

SUB-TOTAL

2 0

2

Technical knowledge (no minimum or maximum)

Feb

2012

Attended

Financial

Planning skills

workshop

which covered

cashflows

IFP 6 0

6

April

2012

Studied for and

passed Personal

Taxation (R03)

CII

1 50 51

SUB-TOTAL

7 50

57

Practice Management (if relevant)

0 0

0

SUB-TOTAL

0 0

0

TOTAL Structured/ Unstructured hours

81 50

131

I confirm that the above is a true record of CPD undertaken by me. Signature Date Supervisor’s Signature Date



Appendix B Professional Development/Training Plan Name IFP Membership No. CPD Period

Priority: A - High B- Medium C – Low

Development Needs

Statement of objectives to be met (desired changes in Financial Planner’s knowledge, skill and/or performance

Recommended development techniques, methods or strategies to accomplish stated goals/needs

Estimated time frame

Signature Date

Supervisor’s Signature Date



Appendix C CPD Record/Log

Name: _______________________________________

IFP Membership No. ___________________

CPD Period __________

Area of CPD Covered CPD hours

Date Activity Provider Structured

(min 21) Unstructured

(min 14/29) Total Learning Outcomes

Personal development (maximum of 6/10 hours) 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SUB-TOTAL

Professional standards & compliance (minimum 2.5 hours) 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SUB- TOTAL



Area of CPD covered CPD hours


(min 21) Unstructured (min 14/29)

Total Learning Outcomes

Ethics (minimum 2.5 hours) 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SUB-TOTAL

Technical knowledge (no minimum or maximum) 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SUB-TOTAL



Area of CPD covered CPD hours


(min 21) Unstructured (min 14/29)

Total Learning Outcomes

Practice Management (if relevant) 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SUB-TOTAL

TOTAL Structured/ Unstructured hours

I confirm that the above is a true record of CPD undertaken by me. Signature Date Supervisor’s Signature Date

Continuing Professional Development...CFP CM, CERTIFIED FINANCIAL PLANNER and are certification...

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