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CFA UKCONTINUINGPROFESSIONALDEVELOPMENTPOLICYCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICY
CONTENTSCONTINUING PROFESSIONALDEVELOPMENT (CPD)WHAT IS IT?4ROLE OF FIRMS AND ACCREDITED BODIES4FCA GUIDANCE ON CPD5STRUCTURED VS UNSTRUCTURED CPD6,7STRUCTURED LEARNING EXAMPLES8UNSTRUCTURED LEARNING EXAMPLES9STRUCTURED & UNSTRUCTURED CPD CASE STUDIES10,11STATEMENT OF PROFESSIONALSTANDING (SPS)CFA UK CPD AUDIT POLICY12EVIDENCING STRUCTURED CPD13GUIDE TO PREPARING A CPD LOG FOR AUDIT14,15FAQ16,17020 7648 6200cpd@cfauk.orgwww.cfauk.orgFollow us:@cfauk2 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYwww.cfauk.org 3
WHAT IS IT?Continuing Professional Development(CPD) is something we all do to developour knowledge and skills and progress inour careers. Over 70% of CFA Institutemembers attest to annually completing22 hours of CPD - 20 hours of continuingeducation and 2 hours of ethics learning.FCA GUIDANCE ON CPDThe Financial Conduct Authority (FCA)requires Retail Investment Advisers tohold a Statement of Professional Standing(SPS). To maintain an SPS individualsmust complete 35 hours CPD annually,with a minimum of 21 structured. CPD is a mandatory part of the firm’slearning policy for all staff though thehours required may vary There is no CPD requirement butindividuals are encouraged andsupported in their learning Address any identified gaps inthe retail investment adviser’stechnical knowledge Be measurable and capable of beingindependently verifiedROLE OF FIRMS & ACCREDITED BODIES 35 hours CPD is mandatory to meetthe Retail Distribution Review (RDR)requirements for advising retail clientsand maintaining an SPS Be relevant to the retail investmentadviser’s current role Have written learning objectivesbased on learning needs and adocumented learning outcomeCFA UK and CFA Institute do not havea mandatory CPD requirement formembers - learning is encouraged andis voluntary.The FCA requires that firms reviewon a regular basis employees’competence and take appropriateaction to ensure that they remaincompetent for their role. Examples offirm requirements for CPD include:All continuing professional developmentshould:As an accredited body CFA UK hasadapted the FCA guidelines on CPD formeeting RDR requirements to producethis CPD Policy. The policy determineswhat is permissible CPD and how itshould be evidenced for RDR coveredindividuals. 10% of SPS holders’ CPDrecords are audited annually by CFA UKto ensure compliance with the policy.Where retail investment advisers areundertaking CPD in order to obtainan SPS, CFA UK seeks to ensurethat individuals are identifyinggaps in their knowledge prior toundertaking learning and, based onthis, are determining relevant learningactivities that meet their needs and stretchbeyond their daily job activities.FCA: We require allCPD, whether structuredor unstructured, to bemeasurable and to considerlearning outcomes.Areas covered in CPD include: Technical knowledge and how toapply it Skills and expertise Changes to products, legislationand regulationExamples of unstructured continuingprofessional development activities include: C onducting research relevant to theindividual’s role R eading industry or otherrelevant materialFCA on structured CPD:It does not includecarrying out researchon products and servicesfor your client. P articipating in professionaldevelopment coaching ormentoring shttp://www.fsa.gov.uk/smallfirms/resources/one minute guides/financial advisers/rdr continuing prof dev.shtml4 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYwww.cfauk.org 5
STRUCTURED VS UNSTRUCTURED CPDSTEP 1: IS MY LEARNING CPD?IS THE LEARNING ACTIVITYRELEVANT TO YOURDEVELOPMENT?CPD activities should address yourdevelopment needs. Once you havereflected on areas for development, youcan then identify the types of activitiesand events that will be relevant.STEP 2: WHAT TYPE OF CPD IS MY LEARNING?ARE YOU MAINTAINING A RECORDOF THE EDUCATIONAL ACTIVITY?You need to ensure that you havegood quality CPD records. You maybe asked for some or all of theserecords in the event of an audit.IS THE LEARNINGVERIFIABLE?Structured learningmust show evidenceof completion.Acceptable evidenceincludes certificates ofattendance, passing atest, or a confirmationfrom the provider.DOES THE ACTIVITYHAVE A LEARNINGOBJECTIVE?Learning objectives aregaps you have identifiedin your knowledge priorto undertaking theactivity. They providespecific examples ofwhat you seek to gainfrom the activity.IS THE RELEVANTLEARNING MORETHAN 30 MINUTES?The FCA requiresstructured learning to bemore than 30 minutesin duration. There is nominimum duration forunstructured learning.CPDSTRUCTURED CPDIF YOUR ANSWER IS ‘NO’ TO EITHER OF THE ABOVE QUESTIONSTHEN YOUR LEARNING IS NOT CPDIF YOUR ANSWER IS ‘NO’ TO ANY OF THE ABOVE QUESTIONSTHEN YOUR LEARNING IS’ UNSTRUCTURED CPD’6 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYwww.cfauk.org 7
STRUCTURED LEARNING EXAMPLESUNSTRUCTURED LEARNING EXAMPLESWhere learning activities meet therequirements listed on pages 5-7, thefollowing types of activities can beconsidered structured learning.READINGATTENDING LIVE EVENTSWATCHING A VIDEO Books Fund Manager presentations andmeetings on products and services areunstructured as learning about these isresearch related to one’s roleWebcasts, webinars or any onlinevideos are unstructured wherethere is no assessment or theassessment is not passed.ATTENDING LIVE EVENTSCompliance, industry or market updatesand personal development via: Articles or journalsStructured when activity completioncan be demonstrated.WATCHING A VIDEO Participating in coaching andmentoring sessions Webcasts Participating as a volunteerin committees SeminarsStructured when an assessment ispassed to prove completion.COMPLETING A QUALIFICATION WorkshopsCONTRIBUTING TO THE PROFESSIONCOMPLETING A QUALIFICATION Developing educational materialand writing/ reviewing articles forindustry publications Conferences Webinars or any online videos Training courses Lectures Fund manager presentationmarket update 30mins Study time for a qualification if theexam is passed Study or revision course completion ifattendance is verified Chairing or presenting at anindustry eventStructured when knowledge is gainedby the contributor in the process ofpreparing/ researching the contribution.Study time and attendance of study/revision courses are unstructuredwhen the exam is not passed.READINGReading books, articles or journals isunstructured where there is no assessmentor the assessment is not passed.NOT CONSIDERED CPDActivities part of daily role (e.g.) Writing articles as a research analyst Presenting on one’s role Running inductions for new starters Chairing internal meetings as a memberof the leadership team Client networking Internal committee, forecast,strategy, meetings Meetings to discussinvestment opportunitiesQualification study is accepted as CPD ifnot already used for RDR compliance.8 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYwww.cfauk.org 9
STRUCTURED & UNSTRUCTUREDCPD CASE STUDIESBelow are common activity types which may be classed as structured, unstructured ornot CPD. Structured activities must be 30 minutes in duration and have to be verifiablewith appropriate evidence. The activity classification is based on the FCA’s guidance thatresearch related to one’s role and learning about products and services isunstructured CPD.EXTERNAL COMMITTEE MEETINGSEXTERNAL MEETINGS/CONFERENCESFUND MANAGERMEETINGSINTERNALMEETINGSSOFT SKILLSTRAINING/ EVENTWRITING ANARTICLESTRUCTUREDEconomic/ market update.If any pre-identifiedknowledge gaps filled.Economic/ market update;learning new technical skills/knowledge through conferences,seminars, workshops, etc.Economic/market update.Economic/market updatefrom external/internal speaker.Development needmet to benefit yourcompany and clientse.g. presentationskills workshopto improvequality of clientpresentations.For externalpublications outsideone’s daily role.UNSTRUCTUREDParticipating in committeediscussions as a volunteerwithout a pre-determinedknowledge gap.Meeting external representativesto discuss products and services.Learning aboutproducts andservices of thefund manager.Learning aboutfunds to invest in.NOT CPD10 www.cfauk.orgwwNetworking with fund managers/clients.CFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYDiscussing assetallocation, firmstrategy and fundinvestment outlook.Extra researchfor internalarticle written inone’s role as ananalyst/ other,which enhancesknowledge inone’s daily role.Completed toimprove one’semployability e.g.CV improvementsession, socialnetworkingevent.CFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYWriting an articlebased on existingknowledge forinternal firm useas part of one’sanalyst/ other role.www.cfauk.org 11
CFA UK CPD AUDIT POLICYCFA UK issues Statements of ProfessionalStanding (SPS) to retail investmentadvisors. A CFA UK SPS allows membersto advise on securities and/ or derivativesonly. To maintain an SPS membersmust complete 35hrs CPD annually,a minimum 21 of which must bestructured. 10% of members who holda CFA UK SPS are audited annually toensure their CPD meets the CFA UK CPDPolicy requirements.The CFA UK CPD year runs 1 Nov – 31October. Members are only required tosubmit 35hrs CPD for audit for a givenCPD year. Submission of additionalhours completed is voluntary.Members must ensure they haveaddressed their development needs andoutcomes when submitting their SPSapplication and if picked for audit.Learning objectives pre-definedknowledge gaps identified priorto undertaking the activity.The activity should address thelearning needs identified.Learning outcomes knowledgegained from the activity (how thelearning objectives were met),application of knowledge to roleand resulting benefit to clients.EVIDENCING STRUCTURED CPDOnly structured activities require evidencewhen an individual’s CPD log is audited aspart of the SPS issue process. UnstructuredCPD does not require evidence. Here arelimited examples of how CPD activities canbe evidenced:ATTENDING LIVE EVENTS,COMPLETING A QUALIFICATION,READING, WATCHING A VIDEO Direct written confirmation to CFA UKfrom the activity provider Certificate of attendance/qualification/ completionCONTRIBUTING TO THE PROFESSION Chairing or presenting at an industryevent: notes of preparatory activitiesand research where knowledgeis gained Developing educational material andwriting/ reviewing articles for industrypublications: copies of final content,notes of preparatory activities andresearch where knowledge is gainedUNSUITABLE EVIDENCE Agenda Confirmation of activity booking Event slides Informal emails confirming attendance NotesAUDIT CHECKLISTEVIDENCE CHECKLISTHave you submitted a CPD log containing:Does your evidence have:3 Activity title, duration, date and type (structured/ unstructured)3 Learning objectives and outcomes (incl. CFA UK activities)3 Evidence for structured activities12 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICY3 Your name3 Title of activity as it appears in your CPD log3 Date of activity3 CPD hours gained3 Provider’s name and signatureCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICY www.cfauk.org 13
GUIDE TO PREPARING A CPD LOG FOR AUDITCheck your CPD log for common errors below to ensure your CPD submission for SPSmeets the CFA UK CPD policy guidance.CPD LOG QUERYQUESTIONSOLUTIONCPD LOG QUERYQUESTIONSOLUTIONNATURE OFCPD ACTIVITY- Is this activity business as usual?- Is it your responsibility to complete thisactivity as part of your daily role?- Did you undertake the activity to meet/network with new fund managers?If you answered ‘Yes’ toany of these questionsremove the activityfrom your CPD log.LEARNINGOUTCOMESSTRUCTURED/UNSTRUCTURED- Is this research related to your role?- A re you meeting with a fund manager(s)to learn about funds/ products toinvest in?If you answered ‘Yes’ to anyof these questions relabel theactivity as unstructured.STRUCTUREDHOURS- Do the hours claimed reflect the hoursassigned in the evidence you provided?- Do the hours claimed take into accountnew knowledge gained only?- Have you removed breaks from thehours claimed?- Was the entire activity relevant to you?If you answered ‘No’ to anyof these questions check andadjust the duration to reflectthe exact hours earned.- Have you provided a critique/ review ofthe activity?- Have you only told us what you learnedwithout detailing how you will apply theknowledge to your role or the effect theknowledge will have on your clients?- Have you told us that the knowledgegained will help you advise your clientswithout detailing how?- Have you stated that the activity met yourobjectives and will affect your clientswithout detailing what you learned, howyou will apply it and how it will affectyour clients?- Have you provided a summary of a fund?If you answered ‘Yes’ to anyof these questions reviseyour learning outcomes totell us:I learned the following fromthe activity(i) .(ii) .(iii) .I will apply this newknowledge gained to mydaily role and clients in thefollowing ways:(i) .(ii) .(iii) .EVIDENCEUNSTRUCTUREDHOURS- Have you provided an accurate estimateof time spent on an unstructured activity?If you answered ‘No’adjust the duration toreflect the hours earned.If you answered ‘Yes’ toany of these questionsre-submit the evidence withthe information required.LEARNINGOBJECTIVES- Have you provided a summary/ opinionon a firm?- Have you provided the agenda/topics covered?- Have you provided a summary ofknowledge/ items covered in the activity?- Have you provided a list of speakers?- Have you provided a summary/statementon current economic conditions?- Have you provided a statement on theimportance of learning and havingan objective?- Have you told us what you learned?- Have you provided a critique/ review ofthe activity?If you answered ‘Yes’ to anyof these questions reviseyour learning objectives totell us:Before I undertook thisactivity I identifiedthe following gaps inmy knowledge:(i) .(ii) .(iii) .I therefore sought tolearn the following fromthis activity:(i) .(ii) .(iii) .Does the evidence you provided have anyof the following missing:- accurate name of the activity as it appearsin your CPD log- your name- duration and date of the activity- name and signature of the providerEVIDENCEIs the evidence you provided:- a confirmation email of your booking- an informal exchange between you andthe provider- a copy of your notes/ presentation slides/agenda (except for slides/ research notesif you presented)If you answered ‘Yes’ toany of these questionsre-submit the evidence withthe information required.14 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICYCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICY www.cfauk.org 15
FREQUENTLY ASKED QUESTIONSSTATEMENT OF PROFESSIONALSTANDINGWHEN IS THE CFA UK CPD YEARFOR SPS?1 November – 31 October.DO INDIVIDUALS APPLYING FORTHEIR FIRST SPS NEED CPD?No.HOW MUCH CPD IS REQUIRED IF IAM RENEWING MY SPS FOR THEFIRST TIME?35 hours if the first SPS was appliedfor before 1 Nov the previous year. Ifit was applied for after 1 November,the first SPS renewal will requirepro-rated CPD. Contactsps@cfauk.org to confirm your hours.I HAVE BEEN AWAY ON LONG-TERMSICKNESS/ MATERNITY LEAVE.DO I HAVE TO SHOW CPD FOR THEPERIOD I WAS AWAY?No, your CPD requirement willbe pro-rated to exclude theperiod you were away.WILL MY CPD BE AUDITED?10% of members who are issued anSPS are randomly audited every year.DO I HAVE TO SUBMIT EVIDENCE FORMY CPD TO APPLY FOR AN SPS?No, evidence is only required forstructured CPD if you are picked foraudit. CPD logs and evidence haveto be made in a single electronicsubmission to cpdaudit@cfauk.org.WHAT IS STRUCTURED ANDUNSTRUCTURED CPD?CPDDOES CFA UK HAVE A CPDREQUIREMENT?Please see pages 8 & 9.No, but learning is encouraged e.g. CFAInstitute recommend their memberscomplete 20 hours of continuing educationand 2 hours of ethics annually.DO I HAVE TO COMPLETE A VARIETYOF CPD ACTIVITIES?This is encouraged by the FCA and mostaccredited bodies, including CFA UK. Seepages 8 & 9 for examples of activity types.DO I HAVE TO LOG MY CPD WITHCFA UK?No. CFA UK members can log theirCPD manually on our template CPD tracker,downloadable from our website. CFA Institutemembers can manually record CPD using CFAInstitute’s Professional Learning Tracker. CPDrecorded elsewhere will also be accepted, aslong as the CPD log and evidence can beprovided, should you be chosen for CPD audit.HOW MANY CPD HOURS CANI CLAIM FOR COMPLETINGQUALIFICATIONS?As many as you spent studying, howeverthe compulsory RDR requirement is 35hours, therefore claiming more is notnecessary for SPS purposes. CFA Instituterecommends claiming a maximum 40hours for each level of the CFA Program.CAN I CLAIM CPD HOURS FOR AQUALIFICATION I HAVE USED TOBECOME RDR COMPLIANT?No, you cannot double countqualifications for both RDR and CPD.WHAT TEMPLATE SHOULD I USE TO LOG MY CPD?ACTIVITYNAME16 www.cfauk.orgCFA UK CONTINUING PROFESSIONAL DEVELOPMENT OMPLETIONDATELEARNINGOBJECTIVESLEARNINGOUTCOMESCFA UK CONTINUING PROFESSIONAL DEVELOPMENT POLICY www.cfauk.org 17
CFA Society of the UK4th Floor Minster House42 Mincing LaneLondon EC3R 7AEwww.cfauk.orgAugust 2022
advisors. A CFA UK SPS allows members to advise on securities and/ or derivatives only. To maintain an SPS members must complete 35hrs CPD annually, a minimum 21 of which must be structured. 10% of members who hold a CFA UK SPS are audited annually to ensure their CPD meets the CFA UK CPD Policy requirements. The CFA UK CPD year runs 1 Nov - 31
