Do I need ASIC or FASEA CPD?


FASEA

  • Are you a relevant provider who provides personal advice on Tier 1 Financial Products (excluding Tier 1 General Insurance)? Yes = FASEA

ASIC

  • Do you provide personal advice on Tier 1 General Insurance and/or Tier 2 General Insurance and/or Tier 2 Deposit Products only? Yes = ASIC
  • Do you provide general advice only on Tier 1 Financial Products? Yes = ASIC (Go to ASIC RG146 FAQs)

FASEA CPD FAQs


Who is considered a relevant provider under the FASEA?

A relevant provider is an individual who is:

  • an Australian financial services (AFS) licensee, an authorised representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, and
  • authorised to provide personal advice to retail clients, as the AFS licensee or on behalf of the AFS licensee, in relation to relevant financial products.

'Relevant financial products' means financial products other than:

  • basic banking products
  • general insurance products
  • consumer credit insurance
  • a combination of any of those products.

What are the obligations for relevant providers under the new FASEA requirements?

Requirement Start date for new relevant providers
(authorised on or after 1 January 2019)

Start date for existing providers (authorised between 1 January 2016 and 1 January 2019)

Have a relevant bachelor or higher degree, or equivalent qualification 1 January 2019 1 January 2024
Pass the exam 1 January 2019 1 January 2021
Complete a professional year 1 January 2019 Not applicable 
Comply with CPD requirements 1 January 2019 (not applicable in professional year) 1 January 2019
Comply with the code of ethics 1 January 2020 1 January 2020
Be covered by a compliance scheme

1 January 2020 (Compliance scheme notifications to be received 15 November 2019)

1 January 2020 (Compliance scheme notifications to be received 15 November 2019)

 

What are the CPD requirements under FASEA? 
Under the standard, FASEA proposes relevant providers (financial advisers) are required to complete 40 hours of  'qualifying CPD activities' each year of which 70% will need to be approved by the licensee (including a maximum 4 hours of professional reading).

Qualifying CPD activities must include a minimum in the following CPD categories: 

CPD Category Minimum CPD Hours Per Year
Technical Competence 5
Client care and practice 5
Regulatory compliance and consumer protection 5
Professionalism and ethics 9

 

The minimum CPD hours requirements total 24 hours meaning there are a remaining 16 hours left to be completed. FEP's FASEA CPD training plan allocates these additional hours to the technical competence and regulatory compliance categories as is consistent with industry trends. 

What are Financial Education Professionals' CPD provider credentials? 

Training should be provided by persons and/or entities that hold appropriate qualifications and or experience, relevant to the training provided.

FEP is a proven supplier of industry-relevant compliance training. 

  • Being an ASIC Authorised Assessor for the purposes of RG 146 and RG 105; and/or
  • Being a registered training organisation accredited to offer programs and qualifications throughout Australia; and /or
  • Demonstrated, long-standing expertise in the activities and regulatory obligations of organisations operating in or servicing the financial services sector.

Our nominated learning provider/s meet the definition of “education provider” specified in Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018, meaning you can be assured that our learning is “qualifying CPD activity”.

Does Financial Education Professionals offer a complete FASEA CPD solution for relevant providers?

Yes. cpdevolve provides financial participants and organisations with the complete online solution to satisfy CPD requirements. 

Our FASEA CPD training plan offers 40 hours in total, these are made up from the below FASEA categories. Our CPD topics are worth 2-3 CPD hours each and meet the 'qualifying CPD activity' requirement. 

CPD Category CPD Hours
Technical competence 15
Client care and practice 6
Regulatory compliance and consumer protection 10
Professionalism and ethics 9

Each topic consists of reading material and then a short multiple choice quiz.  Advisers will have access to a dynamic CPD library for the duration of the CPD year and will be able to upload and record any external CPD activities on our learning portal. 

Customisation of this plan is available for corporate clients, please see our Corporate Solutions page.

How does cpdevolve assist licensees or managers who have 10+ relevant providers?

  • Set your teams CPD training plan and CPD period
  • Monitor your teams CPD progress 
  • Fully customisable resource that assist you to identify areas of improvement and report on progress 
  • Upload external CPD activities to our system and map it to the FASEA CPD categories 
  • Customised reporting
  • Dedicated relationship manager 

Can I customise a training plan to meet my organisation compliance requirements?
Absolutely. Contact us on +61 2 9233 2000 to customise a training plan for your organisation.  

What is a CPD year? 

A CPD year is the 12-month period selected by licensees, in which their relevant providers need to satisfy the CPD requirements outlined in their CPD policy. This must adhere to the minimum CPD requirements under the FASEA standard. 

Licensees must notify ASIC of their CPD year start date between 15 November 2019 - 1 January 2021.  

Can licensees change their CPD year to the calendar year if it has always been Financial year or other? 

Yes. It would make sense to change your CPD year to the calendar year to align with FASEA standards. If a licensees CPD period does not align with the calendar year, the licensee will need to pro-rata the hours for the period from 1 January 2019 to the commencement of their CPD year. 

For example:  Start of the CPD year is 1 July 2019. 

Relevant providers will still need to complete 20 CPD hours (pro-rated) for the period 1 January 2019 - start of your period. They will then need to complete the full 40 hour requirement in the CPD year. Effectively, they will need to complete 60 hours of FASEA mapped CPD before 30 June 2020.  

FEP's CPD training plans will only be offered for the financial year and the calendar year. You can enrol into either of these plans at any time but will need to complete your CPD by the end date. Customisation is available for corporate clients, please see our Corporate Solutions page.

What are the CPD reporting requirements under FASEA?
FASEA states that relevant providers must maintain a continuous, up-to-date and accurate record of their CPD activities and encourages the use of a digital platform.

Can FEP assist with maintaining records of CPD?
Yes, providers will be able to record their CPD activities on FEP Online and track their progress. They can also save or print a copy of their record of learning which will show how many points completed in each FASEA CPD category and on which date.  
FEP will keep training records for at least 7 years. 

Can I upload external training to FEP online?
Yes. You can upload CPD activities completed externally and add this to training plans. CPD can then be mapped to the FASEA categories on the training plan.

What are the requirements around the development of a CPD policy? 

A licensee must maintain and publish a CPD policy that the relevant providers authorised by the licensee adhere. Licensees have until 31 March 2019 to publish their CPD policy irrespective of the commencement of their CPD year. 

What must my CPD policy include?

  • Overall approach to CPD
  • Process for approving CPD activities and the mechanism for allocating hours to these
  • Approach to any CPD plans created for Relevant Providers
  • Process for ensuring CPD activities are provided by persons and/or entities that are appropriate
  • Approach for those affected by extenuating circumstances such as medical, disability or parental leave
  • Approach for existing relevant providers moving licensees
  • Approach for relevant providers who have recently completed their Professional Year
  • Approach for relevant providers working part-time
  • Approach to evidencing outcomes of CPD
  • Approach to record keeping
  • Approach to auditing compliance with the policy

Will FEP provide a template to assist licensees with their CPD policy development?

Yes, we can provide a CPD template for licensees who are using cpdevolve, our online CPD solution. 

Does the FASEA CPD categories satisfy the FPA and Tax Practitioners Board requirements?

In short, yes. 

As per Explanatory paper 042012, the TBP accepts compliance with the FPA CPD policy as compliance with TPB CPE requirements.

FPA has updated its CPD policy as of 1 January 2019. It has largely dispensed with its old dimension-based framework and has announced that it has adopted FASEA categories. The FPA is satisfied that any CPD that meets FASEA requirements in terms of:

  • Category mapping; and
  • Standard; and
  • Record-keeping…

…also fulfils FPA requirements.

You can view the following key documents: