Fais CPD Obligations and Classes of Business
The required hours of continuous professional development required is determined by the extent of the products which you advise on.
Board Notice 194 of 2017, the Fit and Proper road map, decrees as follows:
A FSP, key individual and representative authorised, approved or appointed to render or manage or oversee the rendering of financial services in respect of –
- a single subclass of business within a single class of business must complete a minimum of 6 hours of CPD activities per CPD cycle;
- more than one subclass of business within a single class of business must complete a minimum of 12 hours of CPD activities per CPD cycle; or
- more than one class of business must complete a minimum of 18 hours of CPD activities per CPD cycle
Let’s try and explain this at the hand of practical examples. In order to follow this, please download and print the Classes of Business table.
- Mary works as a representative for a small brokerage and only sells motor insurance. This is one of 8 sub-classes which resort under the “Short-term Insurance, Personal Lines” Class of Business. She only needs to acquire 6 hours of CPD per annual cycle.
- Joseph, her husband, specialises in motor, transport and property insurance, all of which are sub-classes of “Short-term Insurance, Personal Lines” Class of Business. He will need to complete 12 hours of CPD training per cycle.
- Frank, the owner of the business, advises on both Personal AND Commercial lines. As these are classified as two Classes of Business, he will need to attain 18 hours of CPD training per annual cycle, between 1 June and 31 May the following year.
The Board Notice also provides for a reduction in the number of CPD hours.
A FSP, key individual and representative that is authorised, approved or appointed for a period of less than 12 months in a particular CPD cycle, must by the end of that CPD cycle complete a pro-rated minimum number of CPD hours calculated as follows:
(X + 12) x Y = Z
X = Number of annual required CPD hours
Y = number of months authorised, approved or appointed during a particular CPD cycle
Z = Required pro rata CPD hours
A FSP may pro rata reduce the CPD hours in respect of a representative for the period of time during which that representative is continuously absent from work if that absence is due to
- maternity, paternity or adoption leave;
- long-term illness or disability; or
- the representative's responsibilities to care for a family member of that representative who has a long-term illness or disability.
If such an occasion arises, please refer to the Board Notice for full details.
Moonstone Compliance (Pty) Ltd
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