Continuous Professional Training SystemIreland

Presented by:

Paula Hodson, FCIIDirector of Development Services – The Insurance Institute of IrelandOctober 2015

Agenda

• Background

• What are the standards required for:

– Individuals

– Companies

• What are the educational requirements for MCC

• What are the CPD requirements for MCC

– Individuals

– Companies

Background

Minimum Competency Requirement (MCR) introduced 1st January 2007

Revised Minimum Competency Code (MCC) effective 1st December 2011

Harmonised statutory system in place with Fitness and Probity Standards

The MCC applies to all regulated firms in the provision of advice or associated activities in connection with retail financial products

The MCC applies to all “Accredited Persons” working in “specified functions”

What is an “Accredited Person”?

Gives advice to consumers

Assists consumers in making a claim under contracts of insurance

Determines the outcome of consumer claims under contracts of general insurance

Adjudicates on any consumer complaints

Involved in the activity of reinsurance mediation

What is a “Specified Function”?

Personal General Insurance

Commercial General Insurance

Life Assurance

Pensions

Savings & Investments

Private Medical Insurance

Housing Loans & Assoc Insurances

Consumer Credit & Assoc Insurances

Debt Management Services

What are the standards required for individuals under the code?

Hold a recognised and relevant qualification

Being grandfathered in a specified function:

Being trained and supervised by a qualified or grandfathered person

Performing a prescribed script function

Undertake relevant CPD

Personal General InsuranceCommercial General InsuranceLife AssurancePensionsSavings & Investments

Private Medical InsuranceHousing Loans & Assoc InsurancesConsumer Credit & Assoc InsurancesDebt Management Services

What are the standards required for companies under the code?

Supervise new entrants

Monitor outsourced resources

Maintain register of Accredited Persons

Remove individuals from register if not compliant

Provide certificate of Grandfathering by Company (2012)

What are the specific requirements in relation to New Entrants?

Inform new entrant of the need to obtain a relevant recognised qualification within 4 yearsAll new entrants must undergo an initial training programmeAgree a plan for obtaining qualification – must sit exams at every available opportunitySupervision of all activities for period (All advice work must be checked and signed off)Supervision can be reduced incrementallyA supervisor cannot supervise more than 7 new entrants

What are the specific requirements in relation to Grandfathered persons?

Between 1st January 1999 and 1st January 2007 amassed 4 years experience carrying out a specified function.Comply with the Grandfathered experience requirements and this is certified by the firm.Have complied and continue to comply with all relevant CPD requirements.Regulated firms must carry out and document an assessment of those availing of grandfathered arrangementsFirms must certify that their Grandfathers are compliant with the experience requiredNo self certification acceptableCertification must be completed by the 31st December 2012 subject to CPD hours

What are the educational requirements for MCC?Compliance vs Competency

Level 7 on National Framework of Qualifications

Qualification Framework

3 3 = 6

What are the CPD requirements for an individual under MCC?

15 formal hours each calendar year, informal concept gone

Activities need to be accredited by relevant professional body

Surplus hours cannot be carried into next year

Minimum 1 hour per function & 1 hour Ethics

Some qualifications may have a requirement in excess of 15 hours

Maintain log and evidence of completion

Pro-rata CPD Adjustments

Statutory leave:- Block parental leave, statutory maternity, adoption or carer’s leave

Serious ill – Long term illness not less than 2 months

Pro-rata adjustments will not apply to: Part-time work, unemployment, retirement, career breaks or holidays.

What are the company requirements in relation to monitoring CPD?

Supervisor should monitoring CPD – (9months & 6weeks before year end)

Firms must keep records of CPD including:- any breaches, relevance of content and reasons for pro-rata adjustments

A person can have a shortfall once in a 5 year period

Thank you for your time

Go raibh maith agat

Paula Hodson, FCIIDirector of Development Services – The Insurance Institute of Irelandphodson@iii.ie