Download ACCA Rulebook Changes: Explaining Impact on Membership, Practice, Ethics (Jan 2021) and more Study notes Ethics in PDF only on Docsity! CHANGES TO THE ACCA RULEBOOK – 1 JANUARY 2021 This paper provides an explanation of the changes to the ACCA Rulebook, which take effect on 1 January 2021. This document has no regulatory status. It is issued for guidance purposes only. Nothing contained in this document should be taken as constituting the amendment or adaptation of the ACCA Rulebook. In the event of any conflict between the content of this document and the content of the ACCA Rulebook, the latter shall at all times take precedence. The Rulebook is divided into three sections: • Section 1 includes the Royal Charter, Bye-laws and Council Regulations. Commentary on the changes to the Council Regulations is set out below. • Section 2 includes the Regulations, covering membership of ACCA, practising and licensing arrangements, and regulatory and disciplinary matters. Commentary on the changes to the Regulations is set out below. • Section 3 includes the Code of Ethics and Conduct. Commentary on the changes to the Code is set out below. Changes to the ACCA Rulebook arise largely from policy decisions, legislative changes and the requirements of lead regulators or standards setting organisations. Section 1 – Royal Charter, Bye-laws and Council Regulations Council Regulations Composition of Council An amendment has been made to Regulation 3 of the Council Regulations to increase the number of members on Council from 39 to 42. The changes to Council’s composition arise from the modernisation of ACCA’s governance structure and form part of a series of measures to support Council in being reflective of ACCA’s global membership. Section 2 – Regulations Membership Regulations Members in retirement An amendment has been made to Regulation 4(6)(a) of the Membership Regulations to reflect changes to membership in retirement and support the introduction of the concept of lifetime membership. A member who is a Fellow of the Association, and who has, with a view to permanent retirement, retired from professional work or business, may now apply to the Council to be placed on the register of members in retirement. Previously, the requirement was at least 30 years’ membership. Global Practising Regulations United Kingdom withdrawal from the European Union The United Kingdom left the European Union on 31 January 2020 and entered a period of transition which ended on 31 December 2020. As a result, new eligibility and qualification requirements for statutory auditors and audit firms in the United Kingdom and the Republic of Ireland take effect from 1 January 2021. The key changes are set out below: Annex 1 – Additional Practising Regulations for the United Kingdom, Jersey, Guernsey and Dependencies and the Isle of Man • Regulation 2 of Annex 1 contains a new definition for IP completion day and there are also amendments to the definitions for Audit Directive, EEA auditor, EEA competent authority, public interest entity, qualified person and third country. Appendix 1 – United Kingdom Audit Regulations 2016 • all EEA states (including the Republic of Ireland) are third countries • Gibraltar is also treated as if it were an EEA state and is still subject to the Audit Directive • a firm that is an EEA auditor is no longer eligible for a UK auditing certificate • an individual that is a third country auditor must satisfy the new requirements to obtain a UK audit qualification contained in Regulation 6(2)(b) of Appendix 1.
