CCAB and regulation
CIMA provides regulatory and ethical standards for its members and students which are in turn scrutinised and influenced by independent external regulators.
Accounting regulations and standards are set primarily by the Financial Reporting Council (FRC) and the International Federation of Accountants (IFAC). The Professional Standards directorate (PSD) is involved in administering some of their recommendations, including those relating to ethical activities and policies affecting our members and registered students.
FRC
The Financial Reporting Council (FRC) has taken over the functions of the Accountancy Foundation to become the new, single, independent regulator overseeing the self-regulatory professional bodies in the UK. Its purpose is to promote and secure good financial reporting, and is funded jointly by the Department of Trade and Industry, the Consultative Committee of Accountancy Bodies (CCAB) and limited companies.
The Professional Oversight Board for Accountancy (POBA) is a part of the FRC and its role is to oversee the CCAB bodies’ arrangements for regulating and disciplining members. It ensures that they uphold ethical standards, as well as addressing matters relating to auditor independence.
CCAB
CIMA is one of the six professional accountancy bodies that are members of the CCAB. The CCAB is a limited company consisting of CIMA and the following five professional bodies:
- The Institute of Chartered Accountants in England and Wales (ICAEW)
- The Institute of Chartered Accountants of Scotland (ICAS)
- The Institute of Chartered Accountants in Ireland (ICAI)
- The Association of Chartered Certified Accountants (ACCA)
- The Chartered Institute of Public Finance and Accountancy (CIPFA)
The core objective of the CCAB is to promote and protect the CCAB qualified accountant brand whilst also providing regulatory standards. It gives the six accountancy bodies the opportunity to consult together and adopt common approaches as required.
IFAC
IFAC works with 157 member bodies in 118 countries to protect the public interest by encouraging accountants worldwide to maintain high quality practices. Member bodies aim to implement IFAC’s pronouncements and these eventually become International standards. In fact, CIMA’s Code of Ethics for Professional Accountants is closely based on IFAC’s Code of Ethics.
CIMA also belongs to regional groupings of accountancy bodies. We are a member of the Fédération des Experts Comptables Européens (FEE), which is the European regional group that most influences us.
