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How many CPD hours do financial advisers need?
TC 2.1.15R says a firm must make sure a retail investment adviser who has been assessed as competent stays competent by completing at least 35 hours of appropriate CPD in each 12-month period. TC 2.1.16G adds that at least 21 of those hours should be structured CPD.
Accredited bodies run their own CPD schemes on top of the FCA's rules, so check your body's scheme for the period it measures and the evidence it asks for.
- At least 35 hours of appropriate CPD in each 12-month period (TC 2.1.15R)
- At least 21 of those hours structured (TC 2.1.16G)
- The remaining hours can be unstructured CPD
Structured and unstructured CPD
The FCA describes structured CPD as activities with defined learning outcomes, such as courses, seminars and e-learning. Other relevant learning that keeps an adviser's knowledge up to date counts as unstructured CPD.
Record which type each activity is when it happens. Sorting a year of activities into structured and unstructured at SPS time is slower and easier to get wrong.
What is a Statement of Professional Standing?
An SPS is an annual statement from an FCA accredited body. The FCA says it confirms the adviser's qualifications have been verified, that they have kept their knowledge up to date and that they meet standards of ethical behaviour. An SPS is valid for a maximum of 12 months.
TC 2.1.27R requires the firm to get independent verification from an accredited body, and TC 2.1.29G says this should take the form of an SPS. The FCA Handbook glossary names these accredited bodies.
- CFA Society of the UK
- The Chartered Insurance Institute
- The Institute of Financial Planning
- The Chartered Institute for Securities and Investment
- The Chartered Banker Institute
- The London Institute of Banking & Finance
- Walbrook Institute London
- The Institute of Chartered Accountants in England and Wales
- The Pensions Management Institute
What CPD records must a firm keep?
TC 2.1.24R says a firm must make and keep records of the CPD completed by each retail investment adviser. A clear record also makes the annual SPS application quicker for the adviser and easier to check for the firm.
- The date and a description of each activity
- Hours, and whether they were structured or unstructured
- The learning outcome or reflection
- A certificate or other evidence, where there is one
- The adviser's accredited body, SPS issue date and SPS expiry date
- Who reviewed the record, and when
Annual fitness and propriety checks
CPD and the SPS sit alongside the Senior Managers and Certification Regime. The FCA says firms must check and certify that certification staff are fit and proper for their role on appointment and at least once a year. Firms can include certification in their annual appraisal, which makes it a natural point to review CPD and the SPS too.
How SkillProof helps
SkillProof records each adviser's CPD activities with hours, a structured or unstructured classification, notes and evidence, and keeps the annual SPS as its own record with its issuer and expiry date. Reminders go out before an SPS expires, and dated manual FCA Register checks sit with the person. SkillProof does not give regulatory advice, issue an SPS or check the FCA Register automatically.
Financial advice firms can see how the records fit together on the financial advice page, alongside qualifications, memberships and competence.
Official guidance used for this guide
Checked
FCA Handbook rules and FCA pages used for this article. Your accredited body's CPD scheme may add its own requirements.
Questions this guide answers
How many CPD hours does a financial adviser need?
Under FCA rules, a retail investment adviser must complete at least 35 hours of CPD in each 12-month period, and at least 21 of those hours should be structured.
What is structured CPD for financial advisers?
Activities with defined learning outcomes, such as courses, seminars and e-learning. Other relevant learning counts as unstructured CPD.
How long does a Statement of Professional Standing last?
An SPS is valid for a maximum of 12 months, so advisers renew it every year with their accredited body.
Who issues a Statement of Professional Standing?
An FCA accredited body, such as the Chartered Insurance Institute, the London Institute of Banking & Finance or the Chartered Institute for Securities and Investment.
Does SkillProof issue an SPS or check the FCA Register?
No. SkillProof records CPD, SPS dates and your team's manual FCA Register checks, and reminds people before renewals are due.