Institute of Financial PlanningThe Choice of the Professional Practitioner

Continuing Professional DevelopmentSupporting professional standards in Financial Planning

A guide for members

This brochure has been sponsored by

Successful professionals in many sectors have long realised the

importance of gaining new knowledge, improved skills and

developing personal qualities through Continuing Professional

Development (CPD). In essence, CPD is simply considered part of

any good professional practice.

As you move around the ‘Competence Cycle’, the role of CPD is to

ensure that you maintain your hard won competence. After all,

Financial Planning is a technical and complex area, where changes

are frequent. Only a properly structured and appropriately

documented CPD Programme can maintain your competence in this

area.

It has long been a condition that Certified Financial PlannerCM (CFP)

professionals commit to an appropriate CPD scheme and sign a

declaration to this effect on an annual basis. The IFP are now

introducing some improvements to this CPD process. This is in order

to ensure that all IFP members can be properly recognised by

consumers and others in the financial services sector as committing

to the highest standards of professionalism and ethics. The good

news is that this programme works alongside your existing Training

& Competence (T&C) scheme. It is not designed to involve you in lots

of surplus work and it will help to set IFP members apart.

The promotion of professional standards within Financial Planning is

core to the philosophy of the IFP. CPD is considered highly

important in ensuring IFP members:-

n Keep abreast of current regulatory and legislative changes;

n Meet all regulatory requirements and standards;

n Offer clients up to date and effective advice;

n Operate within efficient and profitable businesses

Whilst the Financial Services Authority (FSA) has not prescribed a

minimum number of hours for CPD, the IFP’s intention is to provide

a CPD framework through which members can maintain, update and

develop their competence in areas related to the professional

practice of Financial Planning. Not only will this ensure that your

skills, knowledge and professionalism are up to date but it will also

serve to remind consumers that their IFP membership indicates a

planner who is committed to maintaining the highest standards.

Continuing Professional Development - Setting IFP Members Apart

CPD defined

Continuing professional development (CPD) is designed to develop

your expertise within your individual role, and help you maintain

that edge throughout your career.

It can be defined as: “The systematic maintenance, improvement

and broadening of knowledge, experience and skills, and the

development of personal qualities helpful in the execution of

professional duties throughout a career.”

As a professional body, the IFP has a responsibility to assure the

public of the quality and competence of members. We live in times

of rapid technological, social and political change where the

Financial Planning profession is expanding rapidly. This makes it vital

that we provide members with all the knowledge and skills they

need for the duration of their careers, and beyond the existing

qualifications.

The IFP CPD Scheme and online log has been introduced to enable

members to demonstrate their ongoing commitment to continuing

professional development to both their employer and the regulator,

as well as to us as a professional body if requested. As a result, IFP

members will be better positioned to gain a marketing advantage

from their CPD involvement by demonstrating their commitment to

high quality service and ongoing learning.

Membership Categories

(Details on request)

n Fellows of the IFP (FIFP)

n CERTIFIED FINANCIAL PLANNERCM/CFPCM Professional

n Associate Members (AIFP)

n Member (MIFP)

n Ordinary Member

n Retired Member

n Students

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The promotion of professional

standards within Financial

Planning is core to the

philosophy of the Institute of

Financial Planning

CPD requirements for IFP members

From April 2009, the IFP CPD requirements are stated in terms

of CPD points and not hours. CPD points will be accrued by

members on an annual basis. CPD requirements are effective

immediately upon membership acceptance.

For existing members, when renewing membership the new CPD

requirements will be as follows:

n CFP Professionals and Fellows of the IFP are required as a

condition of IFP membership to attain a minimum of 75 CPD

points annually.

n All other members are required to attain a minimum of 50

CPD points per annum.

n Retired from practice members are not required to attain

CPD points annually.

Whilst minimum CPD requirements have been set by the IFP, it

may be that your professional development/training plan (see

Appendix B) will identify that a greater amount of CPD is

required to maintain or ensure your competence across all areas

in which you operate.

What areas should CPD activities cover?

CPD should cover each of the following areas:

n Professional Standards and Compliance

n Technical Knowledge

n Personal Development

n Practice Management (where appropriate)

The particular route which you will need to take to retain

competence will, of course, be different for each individual, and

it is likely to change from year to year in line with your role and

personal requirements as well as those of your firm. Each area

should be addressed as appropriate for your role and we would

consider it unlikely that all of your CPD points will come from

just one area.

When considering CPD activities, three issues should be

addressed to determine its suitability:-

n Content – is it appropriate?

n Context – is the content presented in a context appropriate

to Financial Planners?

n Educational Level - is the content at the appropriate level?

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Allocation of CPD Points

CPD Activities

IFP Fellows’ Day

IFP CFP Professionals’ Day

Appropriate Seminars/Presentations/Conferences

Attending IFP Branch Meetings

Appropriate Workshops/Training Courses

Online Training Programmes

Writing or reviewing technical articles, papers or books on Financial Planning for publications(repeat presentations do not receive CPD points)

Professional reading that can acquire CPD points

Study for Professional Qualifications

Participation in IFP education and technical committees

Course material design and development in a Financial Planning subject

Presenting/Teaching/Lecturing/Coaching/Mentoring(repeat presentations do not receive CPD points)

CPD Points Awarded

2 points per hour

2 points per hour

1.5 points per hour

1.5 points per hour

1.5 points per hour

1 point per hour

1.5 points per hour

1 point per hour

1 point per hour

1 point per hour, per committee

1 point per hour

1.5 points per hour

We recognise the value of supporting andfostering long-term relationships with thefinancial planner. A combination of ourdepth of technical expertise and years ofexperience just dealing with SIPPs has ledto a reputation for service excellence, recognised by our manyindustry awards.

We’re committed to maintaining these high service standards

and putting the adviser first. By continuingto invest in high calibre staff and modernbespoke IT systems, we aim to build uponthe consistently high service levels thatSuffolk Life has become synonymous with.

Supporting financial planners is central to the success of ourbusiness, and that is why we have agreed to support the IFP CPDprogramme for 2009.

Acceptable CPD content

Professional Standards and Compliance

All IFP members are required to complete at least 15 CPD points

per annum on Professional Standards and Compliance, with 9 of

these points covering Ethics. This might include, but is not limited

to, theoretical knowledge and application of ethical frameworks

including IFP code of ethics and professional practice, ethical

theory, ethical practices and treating customers fairly.

n Ethics (Compulsory)

n Professional Conduct

n Risk Management

n Disclosure

Technical Knowledge

Due to the holistic nature of Financial Planning, the IFP would

expect CPD Technical Knowledge content across the following

areas where appropriate:-

1. Taxation

2. Insurance

3. Investment

4. Retirement, Savings and Income Plans

5. Law

6. Financial Analysis

7. Debt

8. The Economic And Regulatory Environment

9. State Benefits

10. Behavioural Finance

11. Ethics And Standards

Source: Financial Planner Standards Board – Financial Planner Competency Profile

Personal Development

You should also note that within the core area of Personal

Development, maximum levels of accepted CPD points have

been set. Examples of Personal Development can be:

communication skills, managerial skills, public speaking skills,

coaching skills, IT skills and so forth. Please go to the IFP

website to find out more about Personal Development

programmes.

Practice Management

This could include, but is not limited to the following:

n Defining Business Strategy

n Marketing

n Transitioning your Business

n Staff structuring and Recruitment

n Financial Management

n Business Development

n Supervision and Management

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Annual CPD Requirements

CFP Professionals and Fellows75 points

Minimum 15 points of which at least 9 pointsmust cover Ethics

To reflect the competence areas as identifiedin your training and competence plan

A maximum of 15 points per annum is accepted

To reflect the requirements identified in anindividual’s training and competence plan

Ordinary Members, Members & Associates50 points

Minimum 15 points of which at least 9 pointsmust cover Ethics

To reflect the competence areas identified inan individual’s training and competence plan

A maximum of 9 points per annum is accepted

To reflect the requirements identified in anindividual’s training and competence plan

Total points required

Professional standards &Compliance

Technical knowledge

Personal Development

Practice Management(where appropriate)

Financial Planners must meet

specialist knowledge and skill

requirements relevant to all the

areas and products on which

they advise.

Acceptable CPD activities

The IFP considers the following activities acceptable for CPD purposes:

n Attending seminars and presentations.

n Attendance at branch meetings.

n Participating at workshops with or without assessment activities.

n Attending conferences on Financial Planning and related topics.

n Attending courses presented by educational institutions and professional bodies

that cover specialist knowledge.

n Serving on technical/education committees.

n Working as a lecturer, facilitator or assessor related to Financial Planning units

(repeat presentations do not receive CPD points).

n Design and developing of course material in a relevant Financial Planning topic.

n Writing technical articles, papers or books on Financial Planning for publication.

n Undertaking CPD online programs, distance education courses on Financial Planning, reviewing Financial Planning

educational videos, audio tapes and computerised learning packages.

n Reading and studying of Financial Planning topics.

n Carrying out structured technical research for clients.

n Studying for and completing professional examinations and qualifications

The above list should be considered as guidance only. You must determine what is appropriate for your needs, as part of your

firm’s T&C requirements. It is at the discretion of each member to determine what they consider to be acceptable CPD activities for

their role.

The IFP recommend that members look to undertake a variety of different activities in order to gain CPD points to ensure that you

remain competent in key areas while possibly extending your competence into new areas.

Unrecognised CPD activities

Within your CPD record, you can include activities that are not currently accredited by the IFP. However, the content of the activity

should be relevant to the area in which you are looking to gain CPD points.

Remember that you must be able to explain how any non-accredited activities included are relevant to your current job function or

development plan. The following information or documents must also be maintained for all non-recognised activities:-

n Programme content

n Programme structure

n Copies of any assessments undertaken

It is strongly recommended that all members, particularly CFP Professionals or Fellows, undertake recognised activities to ensure

they meet minimum IFP CPD criteria.

CPD activities offered by other professional bodies can be included on your IFP CPD Register. Members who complete CPD

records for other Professional Bodies may submit those records to the IFP if requested; it will not be necessary to duplicate your

CPD records.

Temporary suspension of CPD requirements

Individuals may request a temporary suspension of CPD requirements due to extenuating circumstances such as medical, disability

or parental leave. The request must be made in writing and submitted with supporting documents to the IFP CPD Team. All cases

will then be reviewed on an individual basis.

Application for suspension of CPD requirements cannot be sought due to an increase in workload.

If suspension is agreed, the ongoing IFP membership fee but not the CFP certification fee will still be applicable. During this

period of suspension, members (including CFP Professionals and Fellows) will not be able to use the relevant designation

until CPD is resumed.

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Record Keeping

CPD records (or logs) may be submitted using the new IFP online CPD log.

Alternatively, this can be accessed via www.financialplanning.org.uk/cpd.

Paper forms can also be downloaded from our website or photocopied from

Appendix C. Members may also find the Professional Development/Training

Plan useful from Appendix B.

n All IFP members are required to keep their supporting documentation for

non-recognised activities in the event that they are audited.

n Non-recognised programmes require supporting documentation of:

~ Programme Content~ Programme Structure~ Copies of any Assessments undertaken~ Documentation should be kept for three years.

Each IFP member along with their supervisor where relevant, is responsible for

deciding, within these guidelines, what is considered to be appropriate CPD for

their role to ensure their development in the profession of Financial Planning.

A member's CPD year for recording and audit purposes will be the same as their

membership year. For further information, please see

www.financialplanning.org.uk/CPD

Example

Joe is an Associate Member whose annual renewal date is 1 June 2009. He qualifies as a CFP Professional on 30 September 2009 (i.e. 4 monthsthrough his membership year). As the annual CPD requirement is 50 points formembers and 75 points for CFP professionals, he will be required to complete50 x 4/12 plus 75 x 8/12 = 66 points from 1 June 2009 to 31 May 2010.

Audit and appeals process

The IFP will conduct random audits on members’ CPD records

for the most recent reporting period.

If you are selected for audit:-

n You will be notified of the audit in writing and asked to

send your CPD register to the IFP.

n Your CPD register will be reviewed by the IFP Education

Department and assessed to ensure the CPD record is

acceptable or if any additional information is required.

n Within a period of 8 weeks, you will receive confirmation

from the IFP regarding the audit and whether any

further action is needed.

Deficient Audit Results

If your CPD record is not presented in an acceptable format, you

will be informed and guidance given as to the action required.

You will then be asked to resubmit a revised record in an

acceptable format.

In the unlikely event that you are unwilling or unable to submit

an acceptable CPD record, you would then become subject to

the IFP disciplinary procedures. A copy of these procedures is

available upon request.

If any CPD points are denied during the audit and a deficiency

results, you will be given 90 days to report additional hours to

cure the deficiency.

If the deficiency is not amended, you will be sent a deficiency

notice. Unsupported or mis-stated CPD reporting is a violation of

the IFP’s Code of Ethics and may be grounds for disciplinary action

up to revocation of IFP membership and the CFP certification.

5

Each IFP member is responsible for deciding what is

considered appropriate CPD for their role to ensure their

development in the profession of Financial Planning

Keep track of your CPD points online

An IFP online CPD Register/Log is

available to assist members to keep track

of their CPD points they are accumulating.

Other evidence such as training logs and

records from your T & C scheme or

another Professional Body will be accepted

as long as they conform to the standards

set out (see right).

To find out more visit

www.financialplanning.org.uk/cpd

SECTION THREE: Appendices

Appendix A: Examples

Professional Development/Training Plan ExampleThis document is not compulsory, but can be used a tool for planning CPD for the forthcoming year. Alternatively you can register at www.financialplanning.org.uk/cpd and prepare your plan online.

Name IFP Membership No. CPD Period

Priority:A - High

B- MediumC – Low

DevelopmentNeeds

Statement of objectives to be met (desired changes in Financial Planner’s

knowledge, skill and/or performance

Recommended development techniques, methods or strategies to accomplish

stated goals/needs

Estimated time frame

IFP CPD Log Example

Name IFP Membership No. CPD Period

Datecompleted

ActivityProvided by

(if appropriate)CPD Hours CPD Points Area of CPD Covered

Total CPD Points

A

A

B

Understand how to use lifetime

cashflows

Be able to use Financial Planning softwareto produce cashflows for client reports

Meet the entry requirements

Be confident in the use of SIPPs

Attend IFP Paraplanning workshop Q12009

April 2009Oct. 2009

July 2009

• Complete taxation and trusts exams• Prepare for CFP assessment

Research e-learning packages and productprovider workshops

Complete the CertifiedFinancial Planner

assessment

Improve knowledge ofSIPPs

Feb 09

April 09

June 09

Nov 09

Attended Core Skills Workshop which covered cashflowsStudied for and passed

Taxation and Trusts ExamsUndertook e-learning unit on Treating Customers Fairly

Completed CFP Assessment

IFP

CII

IFP

IFP

6 9

20 30

2 3

70 105

Technical knowledge

Technical knowledge

Ethics

Personal Development

Nov 09 Branch meeting (public speaking) IFP 2 3 Personal Development

150

Signature Date

Supervisor’s Signature Date

I confirm that the above is a true record of CPD undertaken by me.

Signature Date

Supervisor’s Signature Date

Appendix B

Professional Development/Training PlanThis document is not compulsory, but may help you to plan your CPD activities for the forthcoming year.Alternatively you can register at www.financialplanning.org.uk/cpd and prepare your plan online.

Name IFP Membership No. CPD Period

Key Actions:

n Identify goals or development needs (generally derived from

the performance evaluation).

n Identify desired changes in planner’s knowledge, skill and/or

performance.

n Establish what steps the planner and/or supervisor will take

to attain goals and address needs.

n Establish the time frame in which each step should be

completed.

Priority:A - High

B- MediumC – Low

DevelopmentNeeds

Statement of objectives to be met (desired changes in Financial Planner’s

knowledge, skill and/or performance

Recommended development techniques, methods or strategies to accomplish

stated goals/needs

Estimated time frame

Signature Date

Supervisor’s Signature Date

Appendix C

CPD Record/Log

Name IFP Membership No. CPD Period

Signature Date

Supervisor’s Signature Date

Datecompleted

ActivityProvided by

(if appropriate)CPD Hours CPD Points Area of CPD Covered

Total CPD Points

I confirm that the above is a true record of CPD undertaken by me.

Institute of Financial Planning

Whitefriars Centre

Lewins Mead

Bristol BS1 2NT

Tel: 0117 945 2470

E-mail: enquiries@financialplanning.org.uk

Web: www.financialplanning.org.uk

© IFP January 2009