Leading by Example: The Importance of Senior Managers Undertaking CPD

Firms are required by regulation to ensure employees maintain adequate knowledge of eight core competencies (as set out in SYSC 28.2.2R:as transposed from the IDD), the Individual Conduct Rules, and how these apply to their role. Annual CPD requirements are designed to support and demonstrate this knowledge and assess an employee’s competency in their role.  

For Senior Managers to fulfil their responsibility to implement and oversee training that supports compliance with regulation, it is essential that they consider; the nature of each individual’s role within the firm, how the Conduct Roles apply to this role in relation to the interactions and activities that it may entail, and the ways in which misapplication of the role could harm consumers and the market.   

However, Senior Managers are not only responsible for overseeing the CPD of their team, but also maintaining their own training and competence. As well as the Individual Conduct Rules, Senior Managers must maintain knowledge of the second tier of rules and how they apply to them. Certified staff and senior management function holders must also “satisfy any applicable training and competence requirements” and be able to demonstrate “by experience and training” that they are suitable to perform the function they are intended to perform, in annual fitness and propriety assessments (FIT 2.2.1A G). CPD is a key part of evidencing that an individual has maintained the relevant experience and training to undertake their role effectively. 

Yet, many Senior Managers struggle to see the worth of CPD, believing that the knowledge and experience gained throughout their career is a sufficient testament to their competency. CPD is sometimes seen as a tick box exercise to satisfy regulation, rather than an opportunity to grow professional knowledge and strengthen compliance. Senior Managers are integral in shaping and driving compliance, accountability, and ongoing development in organisations. 

As English clergyman William Pollard once said, “Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” The emergence of AI, finfluencers, effects of climate change, and the advent of key regulatory changes, such as Consumer Duty, demonstrates that the landscape of General Insurance is dynamic and ever evolving. Ongoing learning and development is key to staying informed and being able to respond and adapt.  

CPD is essential for Senior Managers to keep abreast of regulatory changes and emerging trends, equipping them with the necessary skills and knowledge to lead teams effectively, mitigate compliance risks, and position the organisation for long-term success in a competitive market.  

Moreover, as Senior Managers serve as role models for teams, actively engaging with CPD demonstrates a commitment to ongoing learning and development which communicates to employees that investing in professional growth is more than fulfilling regulatory obligations - it is an integral part of their roles. This can help to foster a culture where continuous learning is valued and encouraged at all levels. 

By fulfilling regulatory CPD requirements, Senior Managers also uphold the integrity of the SM&CR framework and contribute to a culture of accountability and transparency. This instils confidence in regulators, stakeholders, and customers that Senior Managers are committed to taking responsibility for upholding high professional standards and preventing harm and increasing trust in the competency and knowledge of those operating within the market.  

Through openly documenting their CPD activities and reflecting on their learning experiences, Senior Manages exemplify and underscore the importance of openness, self-assessment, and the ability to take responsibility for forwarding their own development. This contributes to an environment in which feedback and reflection is welcome, mistakes are learnt from, and continuous improvement is embraced as a collective endeavour.  

Leading by example and embracing CPD can deliver tangible benefits for an organisation. Well-informed managers are better prepared to identify emerging risks, seize opportunities, and drive innovation. By investing in their own development, senior managers empower their teams to perform at their best and deliver exceptional outcomes for clients and stakeholders, setting their organisation amongst a competitive market.