The issue of Continuing Professional Development (CPD) in the financial services industry is always an emotive subject, particularly as debate is often clouded by talk of regulation and qualifications.
As a starting point, I am sure that everybody would agree that good professional development provides a virtuous circle of development benefiting the individual, their customer group and their employer.
The financial services market in general, and the mortgage market in particular, often display a negative perception of its own ability to undertake CPD when compared to other professions.
While it is fair to say that CPD usage across the industry is not a uniform standard, it is disingenuous to suggest that the industry is immature in relation to CPD, given the general awareness of the importance of CPD and the wide range of providers of development opportunities.
Few people involved in the advice market will have misunderstood the regulatory position in respect of maintaining competence.
The Financial Services Authority (FSA) provides clear, long established guidance:
‘A firm must review on a regular and frequent basis employees’ competence and take appropriate action to ensure that they remain competent for their role’ and ‘should ensure that maintaining competence for an employee takes into account such matters as technical knowledge and its application, skills and expertise and changes in the market and to products, legislation and regulation.’
That CPD is both important and worthwhile is beyond dispute. However if there is a commonly held view of CPD amongst individuals it is usually that of, ‘I wish could afford the time to do more’.
What is CPD?
CPD demonstrates continued learning, which enables you to take control of your career, provides valuable evidence of staying competent and encourages the development of new skills.
It is about seeking to increase your knowledge and professionalism and always being ready to learn new ways of becoming more efficient and effective.
It’s ‘Continuing’ because learning is an ongoing process whether at work, home or even when engaged in outside interests; ‘Professional’ because it focuses on the skills and expertise which are relevant to your professional role; and ‘Development’ because you are taking responsibility for your own learning to expand your knowledge, maintain confidence and credibility and enhance your career progression.
What are the requirements?
Most trade and professional bodies offer a CPD framework, which is sometimes compulsory, and in general they offer guidance and support for the design and fulfilment of an individual’s CPD plan.
CPD is more about the benefits of learning and development than simply accumulating hours. As long as you can demonstrate planned and reflected learning with the purpose of improving and updating your knowledge it will, assuming any scheme requirements are met, be acceptable.
In planning your CPD you should start by reflecting on a few key questions:
- What regulatory, compliance or other external requirements need to be met?
- What have been my main career achievements over the past five years?
- What are the most significant lessons/milestones for the same period?
- What factors influenced me to begin CPD?
- Where you want to be both personally and professionally in the next two to five years;
- Set aims and objectives not only in relation to work related targets, but also in relation to personal and lifestyle goals;
- Identify the knowledge, skills and expertise you need to achieve your goals;
- Consider the challenges you face at present and the impact they may have on your plan.
Most commentators agree that 2008 will be a tough year across the financial services industry, especially the mortgage sector. The challenges faced are well known; examples can be found in this edition of Mortgage Introducer and will doubtless be found in many editions to come.
However, from talking to lenders, intermediaries and networks, the majority are bullish that professionalism will see them through the tough times and, indeed, ensure that the best advisers will thrive.
CPD is key to maintaining and developing professionalism and there are a number of ways in which firms and advisers can harness CPD in this way.
Formal/structured qualifications.
Formal qualifications can be used as a form of CPD. Within financial services they have the advantage of allowing a user to explore or branch out into a new area of business, such as full financial advice, equity release, commercial mortgages and so on.
In these cases, such qualifications provide a route into potential new areas, allowing advisers to better serve or expand their customer base and also to open up lucrative new areas of business.
While the fact is that threshold qualifications are required for certain activities, there is no denying that the learning experience combined with life experience provide real benefit to user in terms of overall knowledge.
In addition to formal qualifications, there exists a variety of tailored development tools around competence development of technical knowledge and its application.
However, development could be sought in a non-technical area and still deliver clear benefits, both in terms of business benefit and personal growth.
This approach would empower an individual to build up a broader portfolio of skills and knowledge, a portfolio that could be related to the workplace. Examples would include management, accounting, personnel, and information and communication technology qualifications.
Training and development events
Training and development events provide great opportunities for focused further learning and are generally designed to be time-efficient in either providing an introduction to a subject area, allowing for further development, or by providing a one-stop event.
The variety of training events available is enormous and varies in cost accordingly, but as with qualifications it is equally correct to consider both non-industry and industry events as being valid – it all depends on the CPD objectives of the individual.
For industry training, the FSA, product providers, networks and trade/professional bodies offer a range of training opportunities.
Their variety of development events are designed to be relevant to current issues within the industry and, given their resources and contacts, are likely to provide knowledgeable, well-informed and thought-provoking speakers.
The FSA, of course, uses its events not only as a way of imparting information but also to seek the views of the industry.
Network and product providers often organise events which are free of charge and are directly focused on developments and innovations within the range offered.
In addition, executive education programmes provide the chance to hear from leading business and financial services experts and enable delegates to enhance and develop their skills and knowledge.
The emphasis is on stimulating personal development and improving effectiveness through the introduction of new tools and techniques.
To conclude, with myriad CPD opportunities available to mortgage professionals, there really is no excuse for anyone in the industry who is not making efforts to keep their skills and knowledge up-to-date.
