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Compliance Digest: 12th July 2024

Online Learning

It has been another relatively quiet week.   Here is y Compliance Digest summary of some of the issues that have come into my industry news feeds this week. Please share this with your colleagues and with your network.

 

  • Continuous Professional Development – again, I hear you say

  • FCA plans Criminal Background Checks for business owners and controllers

 

Continuous Professional Development – again, I hear you say

You know that it is mandatory that financial advisers complete at least 35 hours of CPD annually.  Here are some ideas that I gleaned from a couple of articles. 

 

I am aware that not many advisers like to squeeze CPD into their working week, but the key word is ‘continuous’ and you should include some time to improve your knowledge or skills on a regular basis.  The IDD requires advisers undertake 15 hours of CPD per year which are incorporated within the 35 hours.  What advisers don’t necessarily realise is that if you write little or no insurance business, this requirement can be met by covering a broad range of topics that have a nominal focus on insurance.  Additionally, advisers who recommend term assurance or other pure protection products to their clients will know that these are covered by the IDD and keeping abreast of industry developments in these areas will count towards both the 15 hours.  Investment bonds are an example of insurance-based investment products (or IPID) and are also captured by the IDD, therefore keeping up to date with such products also falls within the 15 hours required by the IDD.

 

The 35-hour CPD requirement is in place to ensure that financial advisers, and paraplanners if they come under a T&C Regime within their firm, maintain a high standard of skills and knowledge.  It aims to ensure you have the product understanding, skills, and knowledge to provide top quality advice to your clients.

 

CPD does not have to be boring or tedious.  It encompasses a wide range of activities, including workshops, webinars, online modules, and courses, as well as professional qualification and unstructured CPD through reading industry publications.  For advisers, particularly those focusing on investments and pensions, these activities should cover topics including retirement planning, changes to tax regulations and compliance.

 

The IDD meanwhile focuses on enhancing consumer protection and ensuring insurance intermediaries possess adequate knowledge.  It was introduced to provide minimum levels of competence in the insurance industry.

 

What should you consider when planning CPD, how do you decide what to include?

  • Think about your development needs.  What is included in your personal development plan?

  • Are there soft skills that will assist with your interaction with your clients?

  • Do you have gaps in the skills you need to run your business?

  • Are there changes to regulation that you need to update yourself with?

 

After completing CPD activity, consider the key learning points and note these in your CPD record.

 

Compliance Matters UK Limited has partnered with Skillcast to offer access to their learning management platform, for more information, click here.

 

FCA plans Criminal Background Checks for business owners and controllers

In its Quarterly Consultation CP24/11, the FCA includes proposals that firms carry out criminal background checks on owners and controllers at the authorisation gateway, prior to submitting the application via Connect.  The FCA currently conducts these checks using a risk-based approach, but in line with FATF recommendations, the FCA and the PRA now propose to require controllers and beneficial owners to get DBS checks and provide them on request when relevant firms are applying for authorisation and for change in control applications.  

 

The requirement will also apply to qualifying holdings in e-money and payment services firms, and those applying to the FCA for registration under the MLRs.  The FCA proposes to apply the requirement for all applications and notifications submitted from January 2025 onwards.

 

If you want a further discussion about how these changes may impact your firm, please contact us.

 

How can we help?

It is important that you have robust policies and procedures to ensure your firm delivers industry best practice and the four outcomes of the Consumer Duty.  If you would like Compliance Matters UK Limited to review your compliance systems and controls, schedule a free, no-obligation consultancy call with us today

 

To learn more about how Compliance Matters UK Limited can support your firm, click here

 

To learn more about our T&C Support, including access to the Skillcast platform, click here


Ian Ashleigh

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