CPD Course Salesmen Spy a Nice Little Earner - II

 

Further to my post yesterday about being targeted by a company offering CPD courses. 

I would like to ask fellow ICAEW members if they have had similar emails from the Canadian company called LearnFormula?

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CPD Course Salesmen Spy a Nice Little Earner

 

With the ICAEW change in CPD requirements coming into force on 1 November, companies that run CPD courses have spotted a nice little earner (which needless to say will cost the hapless members of the ICAEW dear).

One such company, based in Canada, somehow has my name, email address and knowledge of the fact that I am a member of the ICAEW. I was on the receiving end of this email from them this morning:

" Hi Ken,

Unless you are exempt from the CPD Regulations, then you are required at the start of the CPD year (1 November) to identify which CPD category is most applicable to you, based on the type of work you do - get all your hours during our once-a-year 2-day sale.

By taking online courses, you ensure compliance with your CPD Obligations - online courses are flexible, verifiable, and fit your busy schedule.

Best-selling product on an even bigger sale - until midnight on Wednesday, December 13, 2023, you can claim an additional 10% off on Triennial CPD Custom Package - get 60 hours just for £540.9 instead of £1,737*

• Long-Term Planning: Offers a longer planning horizon, allowing you to organize your learning and development over three years. 
• Time and Cost Efficiency: For just £180.3 per 20 hours (billed triennially £540.9) it provides the lowest pricing - cost savings and administrative convenience as you only need to manage and pay for CPD requirements once every three years instead of annually.
• Flexibility: Select and complete courses at your own pace within the three-year period.
• Reduced Administrative Burden: By streamlining these administrative tasks into a triennial plan, the overall administrative workload decreases significantly. This frees up time to focus on other critical tasks within the organization.

* Use code: DECEMBER

Lock the best price for your professional development credits today."

I have written to them asking them how is it they have my email address.

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Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

ICAEW To Change CPD Requirements

 

The Institute of Chartered Accountants in England and Wales (ICAEW) is changing its Continuing Professional Development (CPD) requirements from November 2023. The new rules will introduce a minimum number of hours that members must complete each year, as well as a mandatory ethics requirement.

The following are the key changes to the ICAEW CPD requirements:

• Minimum number of hours: From November 2023, all members will be required to complete a minimum of 20 hours of CPD per year.
• Verifiable hours: A minimum of 10 of the 20 hours must be verifiable, meaning that members must be able to provide evidence of the CPD activity they have undertaken.
• Ethics requirement: Members will be required to complete a minimum of one hour of ethics training each year.

The new CPD requirements are designed to ensure that ICAEW members remain up-to-date with the latest developments in their profession and that they are able to demonstrate high standards of ethical conduct.

The following are some of the benefits of the new CPD requirements:

• Members will be better equipped to deal with the challenges of the modern workplace.
• Members will be able to demonstrate their commitment to continuous learning and professional development.
• Members will be able to uphold high standards of ethical conduct.

ICAEW members can find more information about the new CPD requirements on the ICAEW website.

Here are some additional details about the new CPD requirements:

• CPD categories: Members will be placed in one of four CPD categories, based on the type of work they do. The categories are:
  • Category 1: Accounting and finance professionals
  • Category 2: Business professionals
  • Category 3: Other professionals
  • Category 4: Retired members
• Ethics training: The ethics training that members are required to complete must be aligned to the ICAEW Code of Ethics. The training can be delivered in a variety of formats, including online courses, webinars, and workshops.
• CPD record keeping: Members are required to keep a record of their CPD activities. The record should include the following information:
  • The title of the CPD activity
  • The date of the CPD activity
  • The provider of the CPD activity
  • The number of hours of CPD
• CPD audit: ICAEW may audit members' CPD records. Members who fail to comply with the CPD requirements may be subject to disciplinary action.

 

Tax Investigation Insurance

Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.

Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.

You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountant's (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.

A Solar Protect policy will enable your accountant (your tax return agent) to:

• Deal with any correspondence from HMRC
• Attend any meeting with HMRC
• Appeal to the First-tier Tribunal or Upper Tribunal
• Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly

Please click here for details.

ICAEW Cracks Down On Self Certification of CPD

Be warned, the ICAEW is cracking down on those members who fail to complete their annual self certification of CPD.

AccountingWeb (ignore the misleading title of their report) reports that Robert Pasley was reprimanded and fined £3,000 with £1,100 costs for breaching ICAEW bye-law 56(c) which requires members to certify their compliance with ICAEW CPD provisions on an annual basis.

Wrt AccountingWeb's misleading article title, a cynic might opine that were the ICAEW ever to crack down on actual CPD undertaken by every member, it is likely the ICAEW would lose half its membership.

A Nice Little Earner

The ICAEW has fined members for the first time for failing to meet the requirements for continuing professional development.

Source Accountancy Age.

I recall, many many years ago, forgetting to pay my annual membership fee (mea culpa!) and (despite apologising profusely for my error) being charged approximately £400 by the ICAEW for the privilege of being "readmitted".

Suffice to say my membership fee is now paid by direct debit!

Ethics - ICAS Leads The Way

ICAS is leading the way when it comes to ethics:

- They introduced a dedicated ethics exam in 2007
- They are considering a voluntary ethics "test" for CPD
- They are considering introducing an annual ethics statement for members
- In 2008 they will publish a number of case studies of ethical dilemmas experienced by ICAS members

Source "Bean Counters or Business Leaders?"

ICAEW does not even have a dedicated ethics exam, why not?

Why is the ICAEW lagging behind ICAS when it comes to ethics?

Misrepresentation and Shabbiness

Today's Independent reports that the qualifications of the president-elect of the Institute of Chartered Accountants in England and Wales, Graham Durgan, were misrepresented on his company's website.

Seemingly Durgan was being passed off, on the Emile Woolf International College website (a company which he owns 60% of), as having both LLB and FCA qualifications.

The only trouble is, according the The Independent, he is neither a bachelor of law nor a fellow of the ICAEW. He is in fact a bachelor of sciences, and an associate of the ICAEW.

I recall Durgan teaching me at BPP, back in the 1980's (he was very good), and do not understand why he is not an FCA; given that if you keep up your CPD etc, you become one after a defined period of time should you choose to apply.

This news comes hot on the heels of the report in yesterday's Independent that revealed that Durgan's company has been named as the "recommended supplier" of training, for the newly won ICAEW contracts to provide training to Russia and China.

It is reported that this could generate contracts worth £200,000 a year to EWI.

Not surprisingly the Independent notes that Durgan's senior role within the institute and EWI has fuelled concerns over potential conflict of interest.

The Independent quotes one member of the profession as saying:

"It's a bit shabby that he was allowed to pitch. If you want to be a commercial business, then don't be president...It's a bit grubby."

Durgan's spokesman is quoted as saying:

"During his deputy presidency, Graham has stepped away from any commercial decisions by the institute that could benefit his firms. During his presidency, he will play no active executive role in his businesses."

An ICAEW spokesman is quoted:

"Throughout the process, the deputy president declared a financial interest in EWI which had been approached to do the work. He was not involved in any way in the evaluation process."

They don't get it do they?

It is not just a question of being independent, it is a question of being seen to be independent.

That is drummed into you from day one of your training contract, it is lamentable that the ICAEW who spend so much time lecturing others about ethics and independence cannot practice what they preach.

The story gets worse, the ICAEW are reported to have described the agreements with EWI as "non-exclusive". Yet this is contradicted by CEO Eric Anstee, who is quoted in the Independent as saying:

"We do not envisage working with further training firms until the volume of students in each location builds".

Indeed, as if to rub further salt into the wounds, ATC International told the Independent that it was not asked by the ICAEW to pitch for its contract for Russia.

Correct me if I am wrong, but based on my experience running fraud investigations, audit departments and companies, open tendering is the bedrock of an ethical and well run business. This is another area that the ICAEW is fond to lecture the world on, yet fails to practice what it preaches.

It now seems that the ICAEW has realised that is has got itself embroiled in yet another mess, that could have been so easily avoided. They have told the media that no agreements with EWI have been signed, and that a committee of past presidents will look into the selection process and will report in the next few days.

The phrase "shutting the stable door after the horse has bolted", springs to mind.

I assume that, depending on the level of outcry and damage to the brand that this sorry little tale produces, there will be some form of political fudge; ie Durgan will step aside, or the contract will be awarded to another supplier.

Too little, too late.

The damage has been done.

We should never have been placed in this position in the first place. The ICAEW claims that it is run by professionals, with industry and business experience. However, the leadership have succeeded yet again in damaging the brand value of our qualification.

This dismal story is another addition to the sorry tally of evidence, that has been building up over the past few months, that shows that the executive and council of the ICAEW are unfit to lead the ICAEW viz:

• The leadership of the ICAEW were trounced for trying to bully us into merging with CIPFA.



• Using the services of Media Strategy, a PR company that breached the Code of Practice of the Association of Professional Political Consultants which resigned its membership of that body rather than face an investigation.



• Damaging the ICAEW's reputation by delaying the introduction of the new syllabus, and most importantly the ethics module, for 2006.



• Wasting our money on a futile MORI poll asking us why we voted against the merger, don't they read or listen?



• Angering and alienating accountants around the world by trying to push through a name change, that ended up being blocked by the Privy Council.

Individually these points are damning enough, yet put together they speak volumes about the quality of leadership at the helm of the ICAEW.

I ask the following of the membership:

• When will we be rid of this shambolic leadership?



• When will the ICAEW learn that it is here to serve the interests of the membership, not the other way around?



• When will that Victorian anachronistic structure known as Council be removed from office?

Failure to address these issues will see the end of the ICAEW as a legitimate force, and respected brand, within the profession.

I don't want to see that happen, neither do the rest of the membership. The time for the membership to take control of the ICAEW is now.

I have voted against all of the proposals put forward by the ICAEW for the forthcoming AGM, as a protest about the way the ICAEW is being led.

I would recommend that, in order to send a clear signal to the leadership that we want change, others do the same.

If you cannot bring yourself to vote against all of the resolutions, then at least vote against the subscription rise (since it will only be wasted on yet another merger campaign next year), and the awarding of honourary FCA's (we are not a university).

The time for action is now.

Dear Oh Dear!

Off topic, and on a lighter side, for the moment; I have just received an email from the ICAEW reminding me about the forthcoming CPD declaration that all ICAEW members have to sign.

The message starts as follows:

"Dear Dear..."

Not the most inspiring way to start this process, maybe they are still depressed after the "No" vote?

Letter To Council

For your information I reproduce the full text of a letter sent by Bruce Lawson to all members of the ICAEW council.

"Dear Member of Council,

A miss is as good as a mile – No means No!

So the Institute gambled and lost – just 29% voted for a merger – 15% voted against and 56% don’t care – hardly a recipe for a re-run. Taking the ICAEW cost of £1.42 million, the 37,004 Yes votes cost £38 each.

The No camp, with two websites and less than a £5,000 spend, was successful because ICAEW strategy was inherently wrong. Try again, and with a £38 a head budget for the Nos (£734,000) you might not even get 50% of the vote and become even more embarrassed.

Your Chief Executive compares the vote with a parliamentary mandate – should a 29% vote be permitted to run the country – does the Council want to compare themselves with spinning politicians and the apathy that they expensively create. Hopefully not after the excellent leadership ICAEW has given until recently.

The debate has had the benefit of educating members. I did not know ICAEW had 500 staff whereas ICAS have 140. A lady at the EGM, who spoke eagerly in favour of the merger, was amazed to know there were 95 Council members.

So where next?

Surely the strategy must focus on falling income. Increased regulation, Practice Assurance, CPD requirements, etc. mean members will not fade away as in the past, but stop and resign to save paying expensive subscriptions. We might like to work longer, but will stress levels permit?

A recent Robert Half report shows (AA 27th October) 25% of a 2,232 sample don't want to work past 55. So face it, budget for a 20% fall in income in real terms over the next five years (think of the 1946 baby boomers) and cut your cloth accordingly.

A truly independent panel of ICAEW members with a budget of say £200K – 10% of what has recently been wasted – should review all ICAEW activities with a view to cutting costs and staff by say one-fifth, and Council members by at least half.

Dissident members will (and should) from now on, resist any subscription increase of more than general inflation – say 3% p.a. ICAEW must live within its means – members have to.

We note gratefully that ICAEW "work hard to provide value for money for our members and realize future cost savings" (page 8, Accountancy – November 2005).

ICAEW should concentrate on training, discipline and a dissemination of technical information and advice on ethics. Sponsoring major symposiums in Washington … what utter drivel.

Council should also abandon the collective responsibility secrecy, which MAC have written evidence of existing and find so disturbing. ICAEW must be utterly transparent in its dealings and an unwieldy Council should not be led by the Executive. What was wrong with the previous system anyway?

Your Chief Executive sees the vote as a mandate to continue to discuss consolidation. He and the Council would be wrong to pursue that strategy. Say you were wrong; budget for lower numbers and the inevitable recession. Cut costs and fanciful delusions of grandeur and then maybe you will get 71% of the members, who voted No or don’t care, and perhaps some of the Yes voters, who only reluctantly voted on your side again.

Ignore these warning signs and the Institute could become ungovernable.

On a lighter note, and in football parlance, you lost, the Nos won; accept defeat as graciously as your current President. Both sides knew the rules. Complaining to the referee after the match achieves very little … and what of the manager’s position?..

We shall see what happens next.