Who needs to comply with ICAEW’s CPD Regulations?

If you are an ICAEW member, someone regulated by ICAEW for certain activities, or a reciprocal member, you are within the scope of ICAEW's CPD Regulations if:

• you undertake accountancy or finance work, or reserved or non-reserved legal services, or
• you are a company director, trustee, or hold a role with an equivalent level of legal or financial responsibility.

ICAEW member firms also have obligations under the CPD Regulations. There is separate guidance for these firms that covers these responsibilities.

Which regulated activities are covered? 

The regulated activities that are relevant for the CPD Regulations include:

• a responsible individual for audit,
• a key audit partner for local public audit,
• an insolvency practitioner,
• a probate authorised individual, and 
• a licensed practitioner under the licensed practice scheme.

What is accountancy and finance work?

Any work that you do that relates to the profession of accountancy is likely to be considered accountancy and finance work. The scope of such activity is wide and would include work undertaken in practice and outside of practice, such as working in the finance department or the management of a business, charity or public sector organisation.

• See a list of services that are regarded as accountancy or finance work. 

What are reserved legal services?

Certain types of legal work can only be provided by individuals who are appropriately authorised or licensed to do so. ICAEW is an approved regulator and licensing authority for probate services. This enables us to accredit firms and authorise individuals to offer probate services to their clients.

If you provide probate services, then you are providing a reserved legal service.

What are non-reserved legal services?

Some legal services are not reserved to those individuals who are licensed or authorised to provide them. For example, estate administration or will writing can be provided by an individual without any special authorisation. Under ICAEW’s Code of Ethics you would still be required to be competent to perform the service.

Directors

If you are an executive or non-executive statutory director of a company you are within the scope of the CPD Regulations.

If you hold a similar role for another type of entity, you should consider whether that role has an equivalent level of legal or financial responsibility to that of a company director. If so, you too would fall within the CPD Regulations.

Statutory directors of micro entities are within the scope of the CPD Regulations, but are not required to complete a minimum number of CPD hours. Micro entities are defined by the Companies Act as those that meet two out of the following three criteria:

• turnover less than £632,000;
• gross assets less than £316,000; and
• fewer than 10 employees.

If being a statutory director of a micro entity is the only role that brings you within scope of the regulations, you should reflect on the nature of this work and your professional development needs and ensure your CPD addresses these needs. 

Trustees

If you are a trustee, then this brings you within the scope of the CPD Regulations. However, if you do no other work, and the only trustee role(s) you hold are of a low-risk, personal nature then you may be exempt from the requirements of the CPD Regulations.

The trustee roles that ICAEW considers are of a low-risk or personal nature are as follows:

• Will trusts – acting in a personal capacity/as an unpaid executor.
• Trustee of intestate estate – acting in a personal capacity/as an unpaid executor.
• Bare trusts – including to open a bank account for a child.
• Parental trusts.
• Pilot trusts with less than £100.
• Co-ownership trusts to hold shares of property.
• Insurance policies.
• Personal injury trusts/special needs trusts.

Please note: That all other types of trustee roles would remain in scope of the CPD Regulations, including trustees of general mixed discretionary or accumulation trusts; and paid trustee/executor roles for will trusts and estates (including intestate estates).

Directors

If you are an executive or non-executive statutory director of a company you are within the scope of the CPD Regulations.

If you hold a similar role for another type of entity, you should consider whether that role has an equivalent level of legal or financial responsibility to that of a company director. If so, you too would fall within the CPD Regulations.

Statutory directors of micro entities are within the scope of the CPD Regulations, but are not required to complete a minimum number of CPD hours. Micro entities are defined by the Companies Act as those that meet two out of the following three criteria:

• turnover less than £632,000;
• gross assets less than £316,000; and
• fewer than 10 employees.

If being a statutory director of a micro entity is the only role that brings you within scope of the regulations, you should reflect on the nature of this work and your professional development needs and ensure your CPD addresses these needs. 

Trustees

If you are a trustee, then this brings you within the scope of the CPD Regulations. However, if you do no other work, and the only trustee role(s) you hold are of a low-risk, personal nature then you may be exempt from the requirements of the CPD Regulations.

The trustee roles that ICAEW considers are of a low-risk or personal nature are as follows:

• Will trusts – acting in a personal capacity/as an unpaid executor.
• Trustee of intestate estate – acting in a personal capacity/as an unpaid executor.
• Bare trusts – including to open a bank account for a child.
• Parental trusts.
• Pilot trusts with less than £100.
• Co-ownership trusts to hold shares of property.
• Insurance policies.
• Personal injury trusts/special needs trusts.

Please note: That all other types of trustee roles would remain in scope of the CPD Regulations, including trustees of general mixed discretionary or accumulation trusts; and paid trustee/executor roles for will trusts and estates (including intestate estates).

There are special provisions, however, for charity trustees who work on a voluntary basis (see below).

Volunteering as a trustee for a charity 

If the only work you carry out within a CPD year is volunteering as a charity trustee (or volunteering in another senior financial or executive role for a charity), you will not need to meet the CPD requirements for categories 1-3. You are however required to complete:

• an hour of verifiable ethics training, such as ICAEW's free annual ethics CPD training course (or ethics training with similar outcomes); and
• verifiable charity-specific training, such as ICAEW's CPD course for charity trustees (or other training with similar learning outcomes).

If you are an ICAEW member who holds paid roles but also volunteers as a trustee, or in another senior financial or executive role, for a charity, you are strongly encouraged to undertake some charity-related CPD as necessary for your role.

Completing ICAEW’s free CPD course for charity trustees, for example, will count towards your minimum number of verifiable CPD hours and give you the knowledge and skills you need to perform your voluntary role effectively.

Please note if you volunteer as a director (executive or non-executive) you will need to complete a minimum number of hours’ CPD and should refer to the CPD category guidance to determine which category applies to you (see above). 

Who is exempt?

Certain individuals are exempt from the requirements of the CPD Regulations. Exemption depends upon your circumstances and you should regularly review whether you remain exempt, particularly if your circumstances change. For example, if you return to work after a break or if your role changes. 

Members and relevant persons who are not working

You will be completely exempt from the regulations for a CPD year (1 November - 31 October) if you do not work at all during that time due to being:

• fully retired,  
• unemployed,
• on a career break,  
• on maternity or paternity leave,
• on long term sick leave, or
• a full-time carer.

If you consider that you are exempt from the requirements of the CPD Regulations for a CPD year, then you should document the basis on which you believe you are exempt. If you are selected for a check of your CPD activity, then this document should be provided to QAD.

Not working in accountancy, finance or legal services

You will also be exempt from the regulations during a CPD year if you:

• work in a role that does not relate in any way to finance or accountancy, or legal services, and
• you are not a trustee, statutory director, or any other role with an equivalent level of legal or financial responsibility.

For example, if your only work is in a marketing role in the fashion industry and you are not a statutory director of the company, then you are not required to undertake CPD under the regulations.

Reciprocal members

If you are a reciprocal member (you gained ICAEW membership or membership of one of the professional bodies listed below, under a reciprocal membership agreement made between that body and ICAEW) then you may be exempt from the CPD Regulations.

If you have satisfied the CPD requirements and obligations relating to your membership of the other professional body, then you would not be required to undertake any further CPD under ICAEW’s Regulations. However, you can choose to comply with the ICAEW CPD Regulations instead of those of your other professional body.

The professional bodies with a reciprocal membership agreement with ICAEW are:

• Botswana Institute of Chartered Accountants (BICA)
• Chartered Accountants Australia and New Zealand (CA ANZ)
• Chartered Accountants Ireland (CAI)
• Chartered Professional Accountants Canada (CPA Canada)
• Hong Kong Institute of Certified Public Accountants (HKICPA)
• Institute of Chartered Accountants of Scotland (ICAS)
• Institute of Chartered Accountants of Zimbabwe (ICAZ)
• Institute of Singapore Chartered Accountants (ISCA)
• South African Institute of Chartered Accountants (SAICA)

Please note, if you are a reciprocal member and you are also a responsible individual for audit, or a key audit partner for local public audit, then you will still be required to fulfil the requirements of ICAEW’s CPD Regulations. 

ICAEW Business and Finance Professionals (BFP)

If you hold the BFP (Business and Finance Professional) designation, you are not within the scope of the revised CPD Regulations, unless you are also an ICAEW member or regulated by ICAEW for certain activities.

However, under the regulations covering BFP’s CPD requirements.

Those with the BFP designation are required to complete at least one hour’s training aligned to ICAEW’s Code of Ethics each year. This is in addition to the requirement to reflect on the nature of the work you are completing and your professional development needs.

While there is no requirement to complete a minimum number of CPD hours, you will need to undertake any training to meet these identified development needs.

Retired members

If you are fully retired during a CPD year then you are completely exempt from the CPD Regulations for that year.

You may fall into the regulations if you undertake voluntary accountancy work, are a trustee of a charity, or statutory director of a company (whether paid or not). The requirements for charity trustees and company directors are outlined above. 

If you undertake voluntary accountancy and finance work in any other capacity, whether for a charity, any other organisation or individual, then you should reflect on the nature of this work and your professional development needs and ensure your CPD addresses these needs. There are, however, no minimum hours of CPD that you have to complete.

Retiring during a CPD year

If you retire during a CPD year you will be expected to carry out at least a pro-rata amount of the minimum number of the CPD hours for your CPD category based on the period from the start of the CPD year to your retirement date.

De minimis

As explained above, if you only provide accountancy and finance services on a voluntary basis, then you do not have a minimum number of hours of CPD to complete.

In addition to this, if you undertake some paid accountancy and finance services, but the total gross income from those services is less than £1,000 per annum, then you can also choose to reflect on your development needs and undertake any necessary training. This is instead of completing a minimum number of hours of CPD.

Please note: If you are providing paid accountancy and finance services under the CPD de-minimis level of £1,000, you would still be required to hold a practising certificate. There is no longer a de minimis level of work for the purposes of the practising certificate rules. For further details on this please see our statement on engaging in public practice.