The Chartered Insurance Institute (CII) has pushed back against a Financial Conduct Authority (FCA) proposal to remove the regulatory requirement for insurance professionals to complete a minimum of 15 hours of continuing professional development (CPD) each year.
The measure is part of the FCA’s broader consultation paper (CP25/21), which outlines a series of changes intended to streamline and simplify insurance conduct rules. The consultation, which was completed on July 2, is part of the FCA’s response to the government’s post-Brexit review of financial regulation. Among other proposed changes, the FCA is considering giving firms more discretion over how they ensure staff remain competent instead of prescribing a fixed number of CPD hours.
In its submission to the consultation, the CII said removing the 15-hour minimum without setting a clear alternative would weaken professional standards and send the wrong message about the value of ongoing skills development in the sector.
The CII also surveyed 582 of its members to gather views on the proposal. It found that 80% believe removing the minimum CPD requirement would harm the public perception of the insurance profession. In addition, 83% agreed, or strongly agreed, that CPD is essential to being viewed as a professional by clients or customers.
CII chief executive Matthew Hill wrote to members last June, stating that without a better replacement, the proposed change risks creating a skills gap that could affect consumers and damage trust in the sector.
While the CII has confirmed it will retain its own CPD requirements regardless of the outcome, it said the FCA’s plan to eliminate the only quantitative regulatory benchmark for training could create a vacuum. It also warned that the proposal runs counter to the government’s own skills strategy, published in June, which called for stronger investment in training to support growth in future industries.
The CII suggested that, instead of removing the requirement entirely, the FCA could clarify its expectations around development and allow professional bodies to lead on implementation. The institute said its findings point to strong support among members for maintaining clear and consistent standards for learning and development across the sector.
