The New CPD Requirements – An Overview for Trustees and Directors.

Are you Familiar with the new ICAEW CPD regulations? Are you compliant? Talk to the Specialists.

Effective from 1 November 2023, The Institute of Chartered Accountants in England and Wales (ICAEW) has revised its Continuing Professional Development (CPD) regulations. Let’s explore what the new rules entail. We’ll look at core elements of the new CPD requirements – who they affect and the support that’s available, with a particular focus on those connected with charities.

Navigating the revised (CPD) Regulations is crucial for those in the accountancy, legal, and corporate sectors who need to understand their responsibilities and ensure they remain compliant as they progress their careers.

At the start of the CPD year (1 November), unless exempt, you need to identify your CPD category based on your job type using ICAEW’s CPD self-assessment tool. If you hold multiple roles covered by the CPD Regulations, you need to complete the assessment for each. When roles have different CPD obligations, the higher CPD hours requirement prevails.

Post identification, you need to devise a CPD plan to meet them. Your plan should cover the minimum CPD hours for your category, with some being verifiable.

You will have to keep a record of your verifiable CPD activities throughout the CPD year. An hour of ethics training is mandatory. ICAEW offers a CPD record example and is developing an online CPD record tool alongside a tool for verifying and logging CPD activity on its website, icaew.com.

Keep your CPD evidence for a minimum of three years after a CPD year ends. If ICAEW’s Quality Assurance Department asks for this evidence, provide it, along with a written summary of your reflection on your CPD needs for the year.

If you’re an ICAEW member, regulated by ICAEW for certain activities, or a reciprocal member, you’re affected if you:

– undertake accountancy or finance work, or reserved or non-reserved legal services
or

– are a company director, trustee, or hold a role with an equivalent level of legal or financial responsibility

ICAEW member firms are also within the scope of the CPD Regulations, with separate guidance available covering their obligations.

Relevant regulated activities include being –

– A responsible individual for audit

– A key audit partner for local public audit

– An insolvency practitioner

– A probate-authorised individual

– A licensed practitioner under the licensed practice scheme.

Many of your common daily work activities will count as CPD, extending beyond courses or webinars to include podcast listening, problem-solving, and peer interactions. CPD also covers future-oriented content and soft skills development.

For CPD to be verifiable, evidence of completion must be objective, corroborated, and retained. Only one piece of evidence is needed for each verifiable activity in your CPD record. Verifiable CPD spans various activities, from peer group discussions to on-the-job technical research and academic writing.

ICAEW offers a free annual ethics CPD course for charity trustees. This course provides up to 12 verifiable CPD hours to enhance your ethical conduct proficiency.

The revised CPD regulations serve as a foundation for continuous learning and ethical practice. By identifying your CPD category, adhering to the specified requirements, and leveraging available resources, you’re well on your path to professional growth and compliance.

Here at Dux Advisory, we have among our staff charity specialists who are well-placed to advise you on your obligations regarding the new ICAEW CPD regulations. Make sure you stay updated and compliant – Find out more – Contact us today