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Professional Development FAIS Act CPD
Naledi is authorised only for short-term personal lines insurance. In the CPD cycle she completes 6 accredited hours, all on trading strategies for hedge fund derivatives. Has she met her CPD obligation?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Yes, because CPD on a more complex class counts double towards a simpler class.
- b) Yes, because any 6 hours accredited by a professional body satisfy the requirement.
- c) Not necessarily, because CPD must also be relevant to her role and the services she renders.Correct
- d) No, because CPD hours must be completed in training provided by her own FSP.
Why this is the answer
CPD must be accredited, but it must also be relevant to the person's function and role and contribute to the knowledge and skills needed for the financial services that person actually renders. An FSP must make sure its people's CPD is appropriate. Accreditation alone is not enough, there is no rule that the FSP must provide the training itself, and hours do not count double.
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