What is continuous professional development (CPD) and is it worth it?
02 Jun 2020
Before going into explaining that CPD is actually a regulatory requirement, it makes sense to take a look at some of the reasons behind CPD training.
Continuous Professional Development (CPD) definition
Continuous professional development is, as the name implies, a recognised standard which demonstrates that a professional has kept up to date with the developments in various sectors such as insurance, risk accountancy to name a few.
Observing CPD requirements benefits the professional who, through structured training, demonstrates the command of the necessary modern skills and competences - gaining public and market confidence in the field they are working in.
Taking the insurance market as an example, a professional that undertakes a number of training hours is able to adapt to the ever-changing dynamics of the volatile insurance market. This type of learning is complementary to one’s career prospects by allowing the professional to become more knowledgeable in dealing with insurance matters and operations.
The role of Malta Financial Services Authority (MFSA)
To ensure that practitioners in the insurance market are conserving their professionalism, the Malta Financial Services Authority (MFSA) has issued rules that require the update of knowledge through CPD by following training in relation, but not limited to, changes in legislation and regulation, new insurance products and services available on the market, new market and consumer trends.
Structured and unstructured training
Such training falls under two categories; structured and unstructured. Regulation 7.5.4 of Part B of the Insurance Distribution rules issued under the Insurance Distribution Act (CAP. 487) requires 12 hours of structured training per year. Structured training is that which can be measured and verified by a body such as the Malta International Training Centre (MITC) and also connected to the occupation undertaken by the relevant practitioner. Another three hours of unstructured training per year is also to be documented and this takes the form of unstructured learning activities such as reading professional journals, accessing the internet to research insurance matters and other related self-learning activities.
The Malta International Training Centre
The MITC provides a number of CPD activities throughout the year from which participants engaged in different areas can select and which are all duly certified by means of a document which can be presented as proof of compliance with the relevant regulations.
For a full complement of scheduled CPD activities, please click here.