Completing CPD hours does not mean an adviser is competent. Here is what genuine competence looks like and what firms need to do differently.
Since the mid-1980s, Continuing Professional Development (CPD) has been a foundation of professional standards in the financial services industry. It is a regulatory requirement for both advisers and firms. CPD was introduced for several reasons, including raising industry standards, keeping advisers at the top of their game and, importantly, keeping them compliant. However, there is an important truth behind every CPD hour logged: simply completing CPD does not, in itself, prove that an adviser is competent.
Sadly, in practice CPD can sometimes become an end-of-year race as SPS renewal dates approach. Advisers cram in webinars, industry research and online training modules to meet the required 35 hours. While this type of rushed activity ticks a regulatory box, it does not necessarily demonstrate competence. Attendance at an industry webinar helps meet the required CPD hours, but unless the learning is applied, does it truly reflect competence?
Competence in financial services is fundamentally about the ability to apply knowledge, good judgement, and technical and behavioural skills in real-world client situations. Advisers must interpret complex financial needs, such as investments, tax implications and long-term pension planning, and make decisions that have significant financial implications for the clients they advise. Does attending a webinar or completing an online learning module on complex pension planning make you competent to advise in this area? Of course not. It is all part of a wider competency journey that includes qualifications, ongoing CPD, adhering to T&C frameworks and, of course, applying knowledge in real-world client situations.
Be honest with yourself. Do you complete regular CPD each month, focused on the areas where you know you have gaps, and apply those learning outcomes day to day? If not, perhaps it is time to consider whether you view CPD as a compliance burden rather than an opportunity to upskill and fill those gaps. Ultimately, CPD should be viewed as part of a broader body of evidence that demonstrates your professional capability.
Logging CPD hours might show on paper that learning has taken place, but on its own it does not answer these critical questions: What changed as a result of that specific learning? How has it improved outcomes for the clients I advise? Can I truly demonstrate the ability to apply that knowledge in my day-to-day role?
Ultimately, when a qualified adviser sits with their clients, it is critical that those clients know they are in safe hands. In addition to technical knowledge and years of experience, the concept of safe hands is derived from the regulator's award of the Statement of Professional Standing. Part of the reason the SPS is awarded annually is the expectation that the adviser has continued to develop and evolve their knowledge and understanding for the benefit of their clients. They should not have stayed still or stagnated. There is therefore a direct link between the value brought to clients and the completion of relevant, progressive CPD.
Forward-thinking firms place a greater emphasis on capability over simply logging activity. They insist that CPD is completed in a structured manner each month, with clear learning outcomes, reflective learning statements and regular discussion in training and competence reviews. These firms see transformational results. Hayley Cook at Reeves notes that through this type of regular interaction, "We can see where people are progressing and where they need support. That makes a huge difference." View Reeves case study.
Reflection, in particular, plays an important role. When advisers actively consider how new knowledge connects to their day-to-day work, they move beyond box-ticking. Reflection helps translate CPD theory into practice and encourages individuals to think critically about how they improve in their role.
Firms have a responsibility to create an environment where learning is truly embedded into an adviser's day-to-day role and not isolated to a spreadsheet purely to satisfy a compliance need. CPD should connect directly to adviser development, form part of a professional development plan and feature in regular T&C review conversations. This way, the employer is proactively supporting adviser growth. Firms should also be nimble enough to shift these conversations during periods of regulatory change. M&G is a great example of how this approach has helped embed learning and given advisers genuine confidence in their development. View M&G case study.
The real value of CPD lies in how the learning attained through 35 hours of quality activity translates into adviser growth. When organisations and advisers focus on learning outcomes and take the time to truly reflect on what they have learned, improved client outcomes are inevitable.
Viewing CPD this way moves the act of logging hours from a compliance checkbox to something far more meaningful. In a profession built on trust, that distinction matters.
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Redmill Advance has been a leading provider of training & development services to the UK financial advice market since 2018 and is based in Linlithgow, Scotland.
