Stay up-to-date with the latest business and accountancy news: Sign up for daily news alerts
Published: 29 Sep 2022 Update History
The consultation is open from 29 September – 27 October.
A commitment to life-long learning has always been an integral part of being a successful ICAEW Chartered Accountant. It is a commitment to investing in the future, continuously identifying emerging gaps in skills and knowledge, and undertaking activities to plug those gaps. CPD is not just about attending courses, it is any activity that helps members keep up to date and proficient in their role, demonstrating to colleagues and the wider public that they are invested in being at the forefront of their profession.
The new policy, due to launch in November 2023, marks a shift away from an output-based model – where members determine the appropriate amount of CPD, to a hybrid model, with a stipulated requirement for a minimum number of hours. This change brings ICAEW in line with other professional bodies that now require minimum hours for CPD.
The overarching principles of the existing CPD policy will remain. Members will still need to consider their development needs and create an action plan, carry out their plan, evaluate its effectiveness and, at the end of the year, declare that they have complied with the policy, providing evidence of compliance if requested. However, in addition to this, from November 2023, all members (other than those that are exempt) will also be required to carry out a minimum number of CPD hours per year, including a minimum number of verifiable hours, with the number of hours varying depending on the role. Members will also need to complete mandatory training aligned to the ICAEW Code of Ethics each year. To make it easier for members to comply with this additional requirement, a new Ethics Learning Programme is in development and will be made freely available to members.
Most of our members will find that they are already complying with the requirements of the new policy with regards to the minimum number of hours. As part of its annual CPD monitoring, ICAEW currently requires a sample of members to submit their CPD records; under the new policy this will expand to include verifiable evidence of learning undertaken. ICAEW is developing an online tool for members which may be used to easily record CPD activities on an ongoing basis.
The new policy will give members greater clarity when it comes to how much CPD they should be doing, appreciating that a one-size-fits-all approach to CPD is not desirable nor necessary.
Against a backdrop of intense scrutiny of the accountancy profession and increased regulatory expectations, and with the rapid pace of change, the need to invest in lifelong learning has never been more important.
Furthermore, many of the recent issues in the profession have hinged not just on a lack of technical understanding but have also arisen due to ethical conflicts of interest and behavioural issues, which will be addressed by the introduction of a compulsory ethics requirement.
The policy will require members to identify which CPD Category they belong to and then complete the minimum number of verifiable and non-verifiable CPD hours annually as prescribed for that CPD Category.
Members working in practice will sit in one of three CPD categories and, depending on their role will be required to complete up to 40 hours of CPD, of which a proportion (set by ICAEW) must be verifiable.
Earlier this year we consulted on the categorisation of roles for members working in practice. We are grateful for the responses we received which have been carefully considered by the CPD Policy Board. The final categories will be published when the policy is formally approved.
Set out below are example areas of work for members working outside of practice and their proposed categorisation. It is envisaged that a more detailed description (with defined terms where necessary) will be included under each of these roles.
The final categorisation will be finalised after considering feedback from this consultation and will thereafter be kept under review.
*Senior finance positions are those which have significant decision-making responsibility such as finance directors (who are not members of a management board) and financial controllers.
**Major Public Bodies are bodies which have total revenue or expenditure in excess of £500 million.
***ICAEW has developed online training modules for charity trustees which give an overview of the legal and financial responsibilities and the necessary strategic and operational considerations. The modules are free to access for ICAEW members and non-members, and when the new policy is introduced, will count as verifiable CPD.
Verifiable CPD is any activity that enables members to keep up to date and proficient in their role, and which can be evidenced – i.e., is fact based and can be corroborated.
We have set out below examples of potentially verifiable CPD. This list is not intended to be exhaustive and will be expanded to include further examples.
CPD activity (must be able to demonstrate how this is relevant to role/development)
Potential verifiable evidence records
Preparing to lecture / teach new content
Session materials, record of event(s)
Research that leads to new learning
File note, list of source references used
Attending webinars, listening to podcasts
Registration email, session notes, notes of learnings
Consulting experts to gain new learning
Records of meetings(s)
Resolving ethical issues
Record of e.g., experts consulted, list of resources accessed
Attending, completing courses, passing exams
Enrolment record, attendance schedule, certificate of completion, exam certificate
Writing e.g., articles that require (develop) new learning or understanding
Copy article, source references, publication dates
Participating in meetings, discussion groups
Evidence of meeting e.g., minutes, diary dates, attendee list
Give us your views on the proposed changes.
The Institute of Chartered Accountants in England and Wales, incorporated by Royal Charter RC000246 with registered office at Chartered Accountants’ Hall, Moorgate Place, London EC2R 6EA
Read out this code to the operator.
XXXXXX
Cancel
