What will happen if a Staff Member does not meet the CPD hour requirement by the end of a CPD cycle? (MSS)

Non-compliance with any competence requirement, including the CPD requirements, carries potential consequences, and regulatory action may be taken against both the Financial Service Provider (FSP) and the staff member involved.

If it becomes evident that a staff member will not be able to meet the CPD requirements by the end of a CPD cycle, the FSP has the option to take proactive measures. The FSP can choose to move the staff member to a role that does not require compliance with the CPD requirements before the CPD cycle expires. This may involve reassigning the staff member to a different position within the organization. Additionally, the FSP can remove the staff member from its representative register, effectively ending their association with the FSP.

On the other hand, if a staff member is already non-compliant with the CPD requirements, the FSP is obligated to take action. In such cases, the FSP is required to debar the representative. This means that the staff member will no longer be authorized to provide financial services on behalf of the FSP and will be prohibited from engaging in any regulated activities.

It is crucial for both the FSP and the staff members to ensure compliance with the CPD requirements to maintain the necessary competence and adhere to regulatory standards. Failure to meet these obligations can lead to significant consequences for both parties involved.