Accounting

ICAEW CPD Update: Earning Free CPD with FloQademy

The Institute for Chartered Accountants in England and Wales (ICAEW) has updated its requirements for Continuing Professional Development (CPD). The changes, which came into effect on 1 November 2023, involve the number of minimum hours of CPD that members need to complete each year – and mean that accountants might need to rethink both how, and what, they learn over the course of the year. 

If you’re worried about staying up to date with your new ICAEW CPD obligations, FloQast can help. The FloQademy resource platform is designed to ensure that accountants understand and meet their CPD obligations through a range of free courses, webinars, podcasts, and more, curated for a range of learning outcomes and completely free of charge. With the ICAEW prescribing at least 20 hours of CPD, we’ll also help you hit your minimum hours targets: we offered 45+ hours of free CPD in 2023, and we’ll be offering more in 2024.   

With all that in mind, let’s take a closer look at how your CPD experience will change under the new ICAEW rules, and how you can use FloQademy to stay ahead of the game. 

What is CPD?

Continuing professional development refers to a broad range of activities that employees and professionals across industries engage in to advance their knowledge, understanding, and experience. CPD can consist of on-the-job activity or planned learning sessions, including courses, webinars, podcasts, and literature. 

Employees should ensure that their CPD Is relevant to their professional needs in order to help them progress in their careers. In accountancy contexts, CPD may include activities and subjects such as accounting best practices, emerging fintech, economics, business management, and communications. The ICAEW has said that its new rules are intended to “maintain the professional, technical and business excellence” of its members, and reflect the “increasingly complex world” in which accountants operate.

What are the 2023 CPD Requirements?

Minimum Hours

The new CPD requirements pertain to the minimum number of CPD hours that ICAEW accountants (and other obliged persons) must undertake per year. 

To determine the exact amount of required hours, individuals must first identify the CPD category that applies to the type of work they do. There are 3 CPD categories, each with a corresponding minimum amount of hours.The different categories cover a range of accountancy positions, roles, and responsibilities, but those involving the most complex work will typically fall within Category 1, with less complex work covered by Category  2 and Category 3. The minimum hour amount for each category also includes a minimum amount of ‘verifiable hours’, which refers to CPD which requires evidence of completion. 

CPD hours also vary by accountants’ practice types. There are two types of practising accountants: those who work for an accounting practice (for example, auditors signing accounts), and those who work outside practices (for example, in a business). FloQast clients are typically members working outside practice. 

The ICAEW CPD categories entail the following minimum hours:

Ethics CPD

Under the new rules, the minimum CPD hours for each category must also include at least one hour of ethics. The ethics training that individuals undergo must be verifiable and must be aligned with the ICAEW Code of Ethics. 

The ICAEW has stipulated that CPD ethics training must:

• Ensure that learners gain the “knowledge, understanding and confidence” they need to demonstrate “high standards of ethical conduct”. 
• Help learners understand how the Code of Ethics helps them fulfil their responsibilities, and why ethics matter in a professional context. 
• Strengthen learners’ “competence and confidence” in ethical decision-making. 
• Ensure that learners are aware of, and able to apply, ethical guidance that is relevant to them. 

The ICAEW offers its own 1 hour ethics course for members seeking to meet their CPD requirements. 

What Do Employees Need to Do?

To comply with the new CPD requirements, employees must first determine which CPD categories apply to their roles, and what kind of CPD activity they must undertake. Consider the following steps: 

Self-assessment: At the start of the assessment year, employees should establish which CPD category (or categories) apply to their work by performing a CPD self-assessment. If an employee has a role in more than one category, they should perform the assessment for both roles, and apply the higher level of CPD requirements.  

Development needs: After determining their CPD requirements, employees should reflect on their professional development needs, and what kind of learning outcomes they desire. 

Learning plan: Employees should consider how they will undertake their CPD, where they will find (and complete) courses, and how they will achieve verification (where that is necessary). The plan should reflect the minimum number of CPD hours that their CPD category mandates, and include at least one hour of ethics training. 

How Should Accountants Undertake CPD?

In the accountancy industry, many employees will complete CPD requirements as part of their daily duties and responsibilities. Activities like coaching, problem solving, learning, thought leadership, and reading industry articles may all qualify as CPD – as long as they are relevant to an individual’s professional role, and help them meet their learning needs.

In some contexts, individuals may need to engage in more structured CPD in the form of training courses, conferences, webinars, podcasts, and more. Fortunately, there are plenty of platforms, including FloQast’s FloQademy platform, that offer repositories of CPD material. 

To get the most out of CPD, employees and employers should take the time to find platforms and learning methodologies that work for their needs. 

What is Verifiable CPD?

Verifiable CPD simply refers to CPD which requires evidence of completion. In practice, that evidence must be objective, corroborated as accurate, and documented in a suitable format. While courses are more easily verified (in the sense that they can be marked and documented) day-to-day work, webinars, workshops, peer discussions, technical research and other activities may also count as verifiable CPD for accountants if they can be evidenced. 

The ICAEW has issued guidance on what kinds of activity may be counted as verified CPD. 

Who Do the New CPD Rules Apply To?

The CPD updates apply to ICAEW members, persons regulated by the ICAEW for certain activities, and reciprocal ICAEW members if:

• Those persons carry out accounting or finance work, or offer reserved or non-reserved legal services, 

Or,

• Those persons are company directors or trustees, or hold an equivalent level of responsibility in their company.

The updated CPD rules also affect ICAEW member-firms. The ICAEW has released separate guidance covering these firms’ new CPD responsibilities. 

Who is Exempt From the CPD Rules?

Some ICAEW members are exempt from the incoming regulations. Exempt groups include: 

• Members not working in accountancy, finance or legal services
• Members that have not worked in a CPD year
• Reciprocal members that are in compliance with their home professional body and that are:
  • Not responsible individuals
  • Key audit partners
• Certain low-risk, personal trustee roles

Expand CPD Horizons with FloQademy

Effective CPD brings benefits for employees and employers, so it’s worth finding a platform that works for everyone. The FloQast CPD FloQademy platform was created with that goal in mind: a 100% free online platform containing a vast amount of CPD resources, and offering accountants a flexible, convenient way to learn. 

FloQademy courses and content span different learning materials, including videos, articles, podcasts, webinars, and panel discussions, including technical and non-technical subjects. Easy to access and use, FloQademy gives learners the power to tailor their experiences, and create the outcomes they need to advance their careers and expand their horizons.

To find out more about FloQademy and accountancy CPD, contact FloQast today.

Hugh O'Neill

Hugh O'Neill is a Chartered Accountant and Senior Sales Engineer based in the UK. Prior to joining FloQast, Hugh served in several senior accounting and financial operations positions.