Simply put, Professional Development is a regulatory requirement to improve professional competence — and therefore the outcomes of our clients. The FMA has made it clear that they expect the standards of professional advisers to continue to lift over the coming years.
It all comes back to Code Standard 9
The requirements for Professional Development Plans are set out in Code Standard 9 of the Code of Professional Conduct for Financial Advice Services. The standard requires that every financial adviser and nominated representative actively develops their capability — and that the FAP can demonstrate how they're supporting that development.
Who it applies to
This applies to financial advisers and nominated representatives alike, and to the licensed entity (the FAP). It is therefore important that the FAP can demonstrate how it ensures that everyone providing advice under its license is able to demonstrate their competency.
The best way is for the FAP and the adviser or nominated rep to have an agreed Professional Development Plan in place that meets the requirements in Code Standard 9.
Building a PDP that actually works
There are many ways to demonstrate that you are meeting these obligations. However, having a system that allows you to both map out the upcoming year's planned professional development, AND record additional training and learning that occurs during the year is ideal. With a plan in place and a system that allows the FAP to review and ensure it is being followed, both the advisers and the FAP can be confident that they are meeting the regulatory requirements.
A good PDP isn't a once-a-year box-ticking exercise. It should be a living document that reflects each adviser's goals, gaps, and growth throughout the year. Quarterly check-ins keep it grounded.
How Dacreed makes it easier
Dacreed has the leading Professional Development Planning solution for financial advisers in New Zealand, with a range of professional development content from PTEs, industry subject matter experts, and financial institutions.
With the content available, or simply by adding additional third-party courses or events to the PDP manually, the Dacreed platform is the easiest way for FAPs to build a PDP with their staff that combines their internal policies and training with external content to form a comprehensive professional development plan.
See Dacreed in action
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