CPD — Continually Plugging Dud funds

Posted by Robin Powell on January 17, 2017

Thank you to TEBI reader Nick Lincoln for sending me this picture on Twitter. It’s a schedule for an event for financial advisers.

 


These sorts of gatherings are staged almost daily, and the agenda for this particular one is fairly standard, namely back-to-back presentations by fund management companies, with occasional breaks for refreshments and for lunch.

You’ll notice in the right hand column reference to “CPD hours”. CPD, for the uninitiated, stands for Continuing Professional Development. Depending on the professional body they belong to, advisers are required to complete a certain number of hours of CPD every year to retain their accreditation.

Is it just me, or are events like this an abuse of the CPD system? How can it possibly aid the professional development of a financial adviser to attend a sales pitch on the latest fund to “protect clients from uncertainty over Trump/ Brexit/ interest rates (delete as appropriate)”? Does a presentation on gold/ Latin American stocks/ Korean bonds being the latest sector tipped to rise from the doldrums really help an adviser to add value for their clients?

Let’s be honest, these events have precious little to do with professional development. You could even argue that they stunt the development of advisers who still labour under the misapprehension that predicting the future and selecting funds to suit is what financial advice is all about.

They are, of course, an opportunity for fund houses to flog their wares and to hand out brochures, pens and stress balls. For some advisers, dare I say, they’re an excuse to get out of the office, to enjoy free food and, most important of all, to notch up those last two hours of CPD they’re required to complete to remain a member of their accredited body.

Don’t misunderstand me. Continuing professional development has a vital part to play in improving outcomes for end investors. But most of what counts as CPD at present is only of benefit to advisers, product providers and conference venues. Oh, and whoever makes those branded stress balls.

Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.

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