The Financial Conduct Authority (FCA) has announced within its Policy Statement on Simplifying the Insurance Rules (PS25/21), issued today, that it will be removing its mandatory 15-hour Continuing Professional Development (CPD) requirement so that firms can have greater flexibility for deciding how to ensure appropriate competency and capability.
The CII reflected the views of our members and challenged the proposal during the regulator’s consultation process. The FCA acknowledges this feedback in its Policy Statement and emphasises that its decision is “not intended as a relaxation of the overall competence and training expectation in our rules”. It adds: “Investment in training and development improves standards that build trust in the sector among consumers and corporate buyers, thereby supporting growth.”
The CII welcomes this positioning, alongside the regulator’s reference to the change making “no difference for members of professional bodies who are subject to their mandatory CPD requirements.” We are also pleased that the FCA specifically recognises the benefit of “the CII’s Professional Map, [which] can help individuals and firms identify training and development needs and plan appropriate CPD.”
We noted in our consultation response that there will always be a balance to be struck between rules and regulations, and the responsibility on professionals to do the right thing. By supporting our members to do just that – through the Professional Map – we give the FCA the freedom to focus on creating and enforcing detailed rules where competitive pressures make other voluntary arrangements difficult to sustain.
We would like to thank the FCA for engaging so openly with us and our members and look forward to continuing to work closely on our shared goal of building and maintaining trust in the insurance profession.