The importance of continuing education for financial advisers

Summary

• Continuous professional development is the mandatory ongoing education financial advisers must complete every year to stay abreast of industry trends and regulatory changes.

• Financial advisers must complete at least 35 hours of CPD every year.

• Financial advisers must record their CPD activities and keep the relevant documentation.

Do financial managers have to continue with professional education?

The Financial Conduct Authority(FCA) demands financial advisers participate in continuous professional development, with set minimum requirements applicable for different roles in the financial advice sector.

Depending on the level of the role, the number of required hours may differ. An Institute of Financial Services qualifying student must complete 12 hours of CPD. In contrast, a fully qualified financial adviser must complete 35+ hours.

What is Continued Professional Development (CPD)?

The FCA has set professional standards for financial advisers that include at least 35 hours of continuous professional development per year. Out of these 35 hours, at least 21 must be structured CPD. If your role includes other retail activities like managing funds or mortgage advice, you will also need to engage in CPD for those responsibilities.

Structured CPD for financial advisers includes formal training with a targeted educational outcome, such as lectures, briefing notes, CPD-qualifying webinars, conferences, courses, and workshops.

Unstructured CPD refers to informal learning activities that contribute to your ongoing education and development needs, such as reading technical articles that increase your knowledge of a relevant area of your work.

You will need to track both types of CPD and provide evidence of your studies and activities. Your CPD documents should address three categories:

• Your identified learning requirements and knowledge gaps

• A plan for meeting these needs

• Records of your CPD activities, including the learning outcomes

Continued professional development is applicable to many professions besides the financial advice industries. It is also mandatory for all healthcare professionals, the educational sector, skilled trades workers, people involved in business and management, legal professionals, and more.

Why is continued professional development important for financial advisers?

Regulation, legislation, technology, and nearly all industries are evolving at a galloping pace. Professionals in any industry must stay up to date with the latest trends, developments, regulations, and sector information to provide their clients with the best advice, solutions, products, and services. 

CPD is vital for professionals in any field because:

• It enhances their knowledge and skills.

• It ensures compliance with regulatory standards.

• It can lead to career growth.

• It builds trust and credibility with clients, employers, and colleagues.

• It helps professionals adapt to changes in their industry.

The FCA requires financial advisers to engage in ongoing education in their fields. Enhancing your knowledge and skillset in your specialist area enables you to deliver the best service to your clients. It also has several significant benefits.

Ensure academic and practical qualifications don’t become outdated

The dynamic financial services industry frequently experiences changes in regulations, tax laws, financial products, and market conditions. Continuing professional development ensures that advisers stay informed and compliant, allowing them to provide accurate and relevant advice. This is especially important with the current focus on Consumer Duty.

Consumer Duty requires that financial advisers act in good faith toward their customers, do their utmost to avoid causing them foreseeable harm, and always enable and assist them in pursuing their financial objectives. 

Opportunity to showcase your knowledge

Clients trust their financial advisers with their investments, so they will choose one who stands out as being well-qualified and knowledgeable. They want to know that you are capable and have your finger on the pulse of the markets. Showcasing your knowledge builds trust and credibility.

Increase your confidence

Confident financial advisers can provide high-quality advice, build strong client relationships, manage risks effectively, and continuously grow in their profession. This confidence is a foundational element of their ability to succeed and thrive in the financial industry.

Have a competitive edge in the job market

CPD equips financial advisers with the latest knowledge, skills, and professional networks, making them more competitive and attractive candidates in the job market. It displays a commitment to excellence and continuous improvement, qualities that employers value highly in the financial industry.

Engage with others in the field

Engaging with others in the field helps financial advisers build a robust professional network. It also enables you to exchange ideas and strategies and facilitates professional support. Mixing with other financial advisers can sometimes lead to collaborative opportunities, potentially expanding your reach and enhancing your service offerings.

What are some continued education opportunities for financial advisers?

There are multiple options for financial advisers wanting to further their education for CPD purposes. Financial advisers are responsible for ensuring their CPD is on track and that they log all relevant activities.

Find suitable courses and programs

Many financial institutions that provide structured CPD for financial advisers will become accredited providers, making it easy for staff to access training courses or participate in in-house training programs. Completing these courses and programs will count toward their required 21 hours of structured learning. 

Attend seminars and webinars

Attending industry seminars and webinars provides opportunities to learn about the latest trends, regulatory updates, and best practices in financial advising. When organised by professional bodies, financial institutions, and educational providers, these events often include sessions that qualify for structured CPD hours.

Professional reading

Engaging in self-directed learning through reading industry journals, research papers, regulatory updates, and financial publications can count toward unstructured CPD hours. It is also essential for staying informed about the latest industry developments.

How do you keep up with continued education as a financial adviser?

All financial advisers must hold a Statement of Professional Standing, which you must renew annually. This involves declaring that you have completed your continuing professional development hours for the year and you adhere to the FCA code of ethics. Financial advisers must also pay their FCA fees and levies for the year.

Want to work with Unbiased? 

All financial advisers must complete 35 hours of continuing professional development to comply with FCA regulations and remain relevant in the industry. Keeping up to date is critical for providing clients with the best advice, as they rely on you to manage their hard-earned cash, investments, and future security. 

Join Unbiased Pro to grow your firm and elevate your service.