FSCP reprimands advisers over CPD shortfalls

The Australian Securities and Investments Commission (ASIC) has detailed two instances of relevant providers, anonymised as “Mr X” and “Mr Q”, failing to comply with their continuing professional development requirements (CPD).

Financial advisers are required to complete 40 hours annually across technical competence, client care and practice, regulatory compliance and consumer protection and professionalism and ethics.

Both matters were referred to the Sitting Panel due to concerns that the relevant providers had not completed the mandatory 40 hours of CPD during the licensee’s CPD year.

In Mr Q’s case, the FSCP said it was “satisfied that the relevant provider had contravened s921BA(4) and s921E(3) of the Corporations Act”.

“The Sitting Panel considered that formal admonishment of the relevant provider, by way of a reprimand, was required. There were no extenuating circumstances, and the relevant provider was tardy in rectifying their outstanding CPD hours,” it said.

While the panel also found that Mr X had contravened the same sections of the Corporations Act, it noted that “rectification of shortfall occurred within reasonable period of time”.

“However, the Sitting Panel considered that a reprimand was needed to emphasise the importance of CPD to maintaining the standards of the profession, as well as the public’s trust and confidence in the profession,” it added.

There have been two prior instances of CPD contraventions gaining the FSCP’s attention, with the most recent resulting in the panel deciding that “no action was warranted because of the extenuating circumstances that led to the non-compliance”.

It stated the relevant provider understood their CPD requirements, had taken action to rectify the breach and would comply with them in the future.

A second instance of a relevant provider failing to meet their CPD qualification was recorded in August 2024, which also received no action because there were “exceptional circumstances that led to the non-compliance”.