ASIC says it will ‘continue to act’ on adviser CPD non-compliance

The Australian Securities and Investments Commission (ASIC) has taken action against four financial advisers in recent months for failing to comply with their continuing professional development (CPD) requirements.

A total of five financial advisers have been brought before the Financial Services and Credit Panel (FSCP) over CPD issues, with four receiving reprimands while one saw no action taken.

“ASIC reminds financial advisers that continuing professional development is not merely a compliance obligation to tick off, it is important to maintain competency and improve knowledge and skills,” the regulator said.

“ASIC will continue to act where financial advisers fail to comply with, or disregard their CPD requirements, including issuing a warning or reprimand or referring financial advisers to the FSCP.”

According to the regulator, the decisions are important reminders for advisers to stay on top of their obligations.

“Financial advisers need to be aware of their CDP requirements including the mandatory categories and hours and keep accurate records of CPD hours completed,” the regulator said.

“Completion of CPD requirements should not be left to the last minute and should be spread throughout the CPD year, as good practice.”

It also reminded Australian financial services (AFS) licensees that they must ensure their advisers are adequately trained, which includes complying with the CPD requirements.

“AFS licensees must notify ASIC at the end of their CPD year if their financial advisers have not complied with the CPD requirement during that year,” ASIC said.

Financial advisers. are required to participate in development programs and activities that “ensure they maintain and extend their professional capabilities, knowledge and skills”, which includes keeping up to date with all regulatory, technical and other developments relevant to the provision of financial advice.

Relevant providers must complete a minimum of 40 hours during their licensee’s CPD year.

This includes meeting the minimum hours across a range of mandatory categories: technical competence (five hours), client care and practice (five hours); regulatory compliance and consumer protection (five hours); professionalism and ethics (nine hours); and tax (financial) advice (five hours where the financial adviser is authorised to provide tax (financial) advice services to retails clients).