Exemption on CPD activities extended
FSCA published exemption
During April 2019 we published an article about CPD requirements as a member of a professional body and CPD requirements in terms of the FAIS fit and proper determination. In the article, we mentioned that the FSCA is considering an amendment to the Fit and proper determination to accommodate CPD activities obtain in terms of a professional designation.
On the 17th of May 2019, the FSCA published an exemption that extends the activities recognised as CPD activities in terms of the Fit and proper determination.
This exemption is a welcome relief for any person that is a member of a foreign professional body that is not recognised by the South African Qualification Authority or for persons with professional designations from foreign professional bodies.
1) What does the exemption entail?
FSCA FAIS Notice 35 of 2019 states that an FSP, KI and representatives who are members of foreign professional bodies are exempted from the CPD requirements to the extent that all references to CPD activity in the Fit and proper requirements must be read as including an extended CPD activity.
Thus a CPD type activity that is recognised by the foreign professional body will now also be considered a CPD activity for purposes of the Fit and proper determination.
2) New definitions introduced by the exemption
Foreign professional bodies that are not recognised by the South African Qualifications Authority as professional bodies and are defined in the exemption as “a foreign body with individual members practising a profession or occupation, and which body maintains oversight of the knowledge, skills, conduct and practices of that profession or occupation”
“Extended CPD activity” means an activity, other than product specific training and an activity performed towards a qualification, that is
Recognised by a foreign professional body;
Allocated an hour value or part thereof by the foreign professional body; and
3) Does this mean that members of the foreign professional body will not be required to comply with any other requirements in the Fit and proper determination?
No, the other requirements in relation to the CPD requirements still remain in effect.
4) Professional designations
The explanatory note states that a person with any of the following designation would fall within the scope of the exemption ( the list is not an exhaustive list of foreign professional bodies):
Chartered Financial Analyst (CFA)
Certified Public Accountant (CPA);
Chartered Alternative Investment Analyst (CAIA);
Financial Risk Manager (FRM);
Financial Modeling & Valuation Analyst (FMVA);
Chartered Financial Consultant (ChFC);
Certified Employee benefits specialist (CEBC)
Licensed International Financial Analyst (LIFA);
Certified International Investment Analyst (CIIA);
Fellow Chartered Financial Practitioner (FChFP)
5) What is excluded as a CPD activity?
Please note that any activity in relation to product training or activities towards obtaining a qualification is excluded from the definitions of CPD activity and extended CPD activity.
In terms of the Fit and proper determination qualification means:
A qualification as defined in the NQF Act offered by an education institution or accredited provider ( this excludes a part qualification);
A Professional programme ( this is a programme at post-graduate level offered by an educational institution or professional body for the purpose of providing specialised competence in a specific field of the financial industry); or
Foreign qualification or foreign professional programme equivalent to a qualification or programme as above, and has been evaluated by SAQA as such.
Should you have any further enquiries you may contact Karien Nel at the FSCA at Karien.Nel@fsca.co.za