Continuing professional development (CPD) requirements for financial advisers

All financial advisers (except for provisional financial advisers) are required to participate in development programs and activities that ensure they maintain and extend their professional capabilities, knowledge and skills, including keeping up to date with all regulatory, technical and other developments relevant to the provision of financial advice. 

Financial advisers must comply with the CPD requirements set by the Minister. The CPD standard involves financial advisers completing 40 hours of CPD each year, of which 70% must be approved by their Australian financial services (AFS) licensee. The Minister does not approve the required professional development activities.

There are minimum hours set for CPD across the following mandatory categories:

• technical competence (5 hours)
• client care and practice (5 hours)
• regulatory compliance and consumer protection (5 hours), and
• professionalism and ethics (9 hours).

These minimum hours are specified in the Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018. The balance of up to 40 hours must consist of qualifying CPD activities.

Financial advisers can use their AFS licensee’s templates and guidelines to help them meet their CPD requirements.

The financial adviser (or their AFS licensee) must:

• keep complete and accurate records of their CPD activity, and
• be able to provide a copy of these records to their AFS licensee on request.

AFS licensees must update the Financial Advisers Register if a financial adviser they have authorised fails to comply with the annual CPD standard.

Financial advisers who provide tax (financial) advice services

For financial advisers who provide tax (financial) advice services to retail clients, the minimum hours for CPD across the mandatory categories include an additional 5 hours of CPD in the area of tax (financial) advice. For more information on the CPD requirements that apply to financial advisers who provide tax (financial) advice services to retail clients, see Information Sheet 268 FAQs: Relevant providers who provide tax (financial) advice services (INFO 268).

Persons training to become a financial adviser

If you are training to become a financial adviser (also referred to as a ‘provisional financial adviser’ once you are providing personal advice to retail clients under supervision), you are not required to comply with the CPD requirements set by the Minister. However, you do need to complete structured training as part of your professional year requirements. For more information on these requirements, see Professional year.