The IDD came into play from the 1st October 2018 and requires that insurance and reinsurance distributors, and employees of insurance and reinsurance undertakings or intermediaries, possess appropriate knowledge and ability in order to complete their tasks and perform their duties competently.
Employees of firms who undertake in the distribution of Insurance products must undertake a minimum of 15 hours of Continuing Professional
Development (CPD), and firms must maintain documentary evidence of the CPD that each individual has taken. This requirement applies not
only to frontline sales staff but also to those within a firms management structure who have a responsibility for a firms insurance
This directive includes all Ancillary Insurance Intermediary’s (ALL). An ALL is a company or person, who, for remuneration, takes up or pursues the activity of insurance distribution on an ancillary basis, ie, insurance distribution is secondary to the principal professional activity of that person or business.
Motor Dealers who offer, sell and distribute General Insurance products, such as GAP insurance, regulated used car warranties, cosmetic repair insurance policies, etc… fall into this category.
What is CPD?
Continuing Professional Development (CPD) is the term used to describe the learning activities professionals engage in to evidence, develop and enhance their knowledge and abilities. It enables learning to become conscious and proactive. Engaging in Continuing Professional Development ensures that both academic and practical qualifications do not become out-dated or obsolete; allowing individuals to evidence skills, up-skill or re-skill themselves regardless of occupation, age or educational level.
How do you undertake effectively, evidenced CDP
CPD combines a variety of different methodologies to apply learning and skills acquisition. These can take the form of accredited training courses, webinars, seminars, including e-learning programs, which are often recognised as an effective method of applying and monitoring CDP regimes
When do you need to implement your CDP program...
The Insurance directive came into force October 1st 2018, and the 15 hours of CPD if called upon, will need to be evidenced for any 12 month period. It's not too late to de-risk your business now, but one thing is for certain and that is dealers will need to provide evidence that their employees have accomplished 15 hours of CDP by 1st October 2019.
Failing to evidence 15 hours of CDP or poor record keeping.
Should a firm be unable to evidence their staff have achieved 15 hours of relevant CPD the FCA has a wide range of powers that can be brought upon a dealer to include suspending firms and individuals from undertaking regulated activities, issuing fines against firms and individuals who breach the rules and ultimately withdrawing a firm’s authorisation.
For further information on Automotive Compliance CDP Training Academy please call 01452 671570 or complete our contact us page for a callback.
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