CPD Requirements Around the World

In the fast-evolving world of accountancy, continuous learning keeps us on top of changing regulations and ahead of skill gaps. To help us do this, each of the UK’s accountancy bodies has a CPD (Continuous Professional Development) scheme.

They are required to have one due to their membership in IFAC, the global organisation for the accountancy profession, and by the Financial Reporting Council. The FRC delegates its regulatory responsibilities to four Recognised Supervisory Bodies (RSBs): the ACCA, CAI, ICAEW, and ICAS, and thus has the right to lay down conditions, such as an effective CPD policy.

In our previous blogs in this series, we explored the similarities and the differences between CPD requirements worldwide. But what are the specific requirements for some of the biggest professional bodies?

To start, CPD schemes are defined either by the “inputs” – how many hours you are required to spend doing CPD, or by the “outputs” – the outcomes you have decided you need to achieve to remain relevant, up-to-date, and ready for the challenges of tomorrow. Proponents of input-based systems point to the ease of measurement and the fact that it is much harder to misrepresent whether you have done your CPD. On the other hand, proponents of output-based systems argue that they are more rigorous and that measuring compliance in hours turns the process into a cynical tick-box exercise.

CPD requirements are defined as verifiable or non-verifiable – or structured and unstructured. You can learn more about the difference between those two in our blog on verifiable vs. non-verifiable CPD. At a glance, verifiable or structured CPD must be able to be evidenced.

So, what are the different requirements?

A key requirement for all bodies is that the learning should be relevant and useful to your career. Let’s explore the different CPD requirements of professional bodies around the world.

The Institute of Chartered Accountants in England and Wales (ICAEW)

Under some pressure from the FRC, and after a consultation process with members, ICAEW has switched to an hours-based approach. All members must complete a minimum number of CPD hours every year. This includes a mandatory annual ethics CPD requirement and an overall number of CPD hours, depending on which category of risk their workplaces place them in.

ICAEW members are assigned risk categories, which determines the minimum amount of CPD you need to do in a year. The default category, category 3, has the lowest CPD requirement, though particular organisations or services can place you in a higher category. The requirements are also divided between practice and non-practice.

The ICAEW guidelines don’t just leave compliance with an individual. While practices have always needed to ensure the accountants in their team complete appropriate CPD, it has never been the primary focus of a QAD visit. That has changed.

With the switch to an hours-based system, QAD will find it much easier to assess whether a practice is taking CPD compliance seriously. So, when you receive the email from QAD, scheduling a visit, there will be one more set of records you need to produce.

If the CPD service you use doesn’t give you easy access to those records, you will have the unenviable job of asking for, and chasing down, the CPD records of every accountant in your team. If it turns out they don’t have the evidence, it may well be too late to sort the problem out.

Still unsure about ICAEW’s guidelines? You can read more about them in our whitepaper, ICAEW CPD Changes: What do they mean for you?