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Comparing TPB and FASEA’s CPE/CPD requirements

Comparing TPB and FASEA’s continuing professional education/development requirements

The continuing professional development (CPD) requirements of the Financial Adviser Standards and Ethics Authority (FASEA) are contained in the Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018

Although FASEA’s use of the terms ‘continuing professional development’ or ‘CPD’ are different to the terms ‘continuing professional education’ or ‘CPE’ used by the TPB, for our purposes these terms have the same meaning and are used interchangeably.  

FASEA sets the CPD requirements for financial advisers to maintain and extend their professional capabilities, knowledge and skills.

The TPB sets the continuing professional education (CPE) requirements for registered individual tax (financial) advisers to maintain their knowledge and skills relevant to the tax (financial) advice services they provide.  


FASEA vs TPB requirements

Summary of FASEA’s CPD requirements

Summary of TPB’s CPE requirements

What does this mean for tax (financial) advisers?
 

FASEA vs TPB requirements

The key differences between the FASEA and TPB’s requirements are summarised in the table below:

FASEA CPD requirements TPB CPE requirements
CPD period is 1 year. CPE period is 3 years.
Must complete 40 hours of CPD each year. Must complete 60 hours of CPE over 3 years, with a minimum of 7 hours each year.
Up to 30 hours of formal relevant education (such as a degree or equivalent approved by FASEA) can be counted towards CPD. Time spent towards gaining formal qualifications required for registration does not count towards CPE.
Responsible Australian financial services (AFS) licensees must assess and approve 70% of the CPD activities of relevant providers. TPB does not accredit or approve CPE activities. Registered tax (financial) advisers are expected to exercise their professional judgment in selecting relevant CPE activities to be completed.

The following sections provide an overview of FASEA and TPB’s requirements.


Summary of FASEA’s CPD requirements

An overview of FASEA’s requirements is provided below.

CPD plan

  • Each relevant provider (or individual tax (financial) adviser) must prepare a CPD plan for each CPD year.
  • A relevant provider’s CPD plan must:
    • identify areas to develop and improve their competence, knowledge and skills
    • describe the qualifying CPD activities they will complete during the CPD year to achieve those improvements.

CPD hours

  • A relevant provider must complete at least 40 hours of qualifying CPD activities during a CPD year. 
  • If the relevant provider works part-time for the whole of the CPD year, the minimum is 36 hours of CPD with the prior written consent of the relevant provider’s responsible AFS licensee.
  • The 40 hours of CPD activities must include a minimum of:
    • five hours in the area of technical competence
    • five hours in the area of client care and practice
    • five hours in the area of regulatory compliance and consumer protection
    • nine hours in the area of professionalism and ethics.
  • If the relevant provider is not an AFS licensee, at least 70% of the minimum number of hours must be spent on qualifying CPD activities approved by the relevant provider’s (AFS) licensee.
  • In any CPD year, CPD activities should not include more than:
    • four hours of professional or technical reading
    • 30 hours of formal relevant education (a degree or equivalent approved under FASEA’s requirements, a course determined in a legislative instrument issued by FASEA, education or training provided or approved by a professional association, formal education or training study towards qualifications or designations relevant to practice as a relevant provider).
  • A relevant provider who leads or conducts a qualifying CPD activity may count the number of hours spent in the preparation and first delivery of the activity.


Summary of TPB’s CPE requirements

Registered individual tax (financial) advisers must have completed CPE that meets the TPB’s requirements when renewing their registration. 

In summary, the requirements include:

  • completing a minimum of 60 hours of CPE over three years, with a minimum of seven hours of relevant CPE each year
  • undertaking CPE relevant to the tax (financial) advice services they provide
  • where a condition is imposed on registration, completing a minimum of 45 hours of CPE over three years, with a minimum of five hours of CPE each year
  • counting no more than 25% of relevant technical or professional reading as CPE over a CPE period
  • maintaining records or evidence of completed CPE.

The TPB does not accredit or approve CPE activities. Registered tax (financial) advisers must exercise their professional judgment in selecting relevant CPE activities to be completed.

For further information refer to Continuing professional education for tax (financial) advisers.


What does this mean for tax (financial) advisers?

The number of CPD hours that FASEA requires per annum is greater than the number of hours that the TPB requires. This means that if you meet FASEA’s CPD minimum hours, it is likely to also meet the TPB’s requirements provided the CPD activities:

  • are relevant to the tax (financial) advice services you provide
  • do not include undertaking formal qualifications to meet the TPB’s registration requirements.


Further information


Last modified: 15 November 2019