2. Continuous Professional Training System Ireland Presented by: Paula Hodson, FCII Director of Development Services – The Insurance Institute of Ireland October 2015

3. 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

4. Background Minimum Competency Requirement (MCR) introduced 1 st January 2007 Revised Minimum Competency Code (MCC) effective 1 st 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”

5. 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

6. 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

7. 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 Insurance Commercial General Insurance Life Assurance Pensions Savings & Investments Private Medical Insurance Housing Loans & Assoc Insurances Consumer Credit & Assoc Insurances Debt Management Services

8. 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)

9. What are the specific requirements in relation to New Entrants? Inform new entrant of the need to obtain a relevant recognised qualification within 4 years All new entrants must undergo an initial training programme Agree a plan for obtaining qualification – must sit exams at every available opportunity Supervision of all activities for period (All advice work must be checked and signed off) Supervision can be reduced incrementally A supervisor cannot supervise more than 7 new entrants

10. What are the specific requirements in relation to Grandfathered persons? Between 1 st January 1999 and 1 st 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 arrangements Firms must certify that their Grandfathers are compliant with the experience required No self certification acceptable Certification must be completed by the 31st December 2012 subject to CPD hours

11. What are the educational requirements for MCC? Compliance vs Competency Compliance Professional Certificate in Insurance (APA) 3 exams leading to a product specific qualification Licence to trade Competency Professional Diploma in Insurance (CIP) Additional 3 exams (1 Product, 2 Process (Underwriting and Claims) Well rounded generalists Level 7 on National Framework of Qualifications

12. Qualification Framework 33= 6

13. 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

14. 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.

15. 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

16. Thank you for your time Go raibh maith agat Paula Hodson, FCII Director of Development Services – The Insurance Institute of Ireland phodson@iii.ie