Focus on principles-based regulation is needed, says the Association
The Association of International Certified Professional Accountants has welcomed the principles-based approach to regulation taken by the UK’s Financial Reporting Council (FRC) in its draft Corporate Governance Code, published in early December 2017.
The Association responded to the consultation on the FRC’s draft code in February.
Andrew Harding, the Association’s chief executive, management accounting, said: “Trust and reputation, supported by a proportionate regulatory framework, are critical to an organisation’s long-term strategic success. These factors reinforce all manner of decisions from investment through to attracting customers and talent. For this reason corporate governance must seek to drive effective decision-making, underpinned by the right behaviours, which promotes better business, trusted by society.”
He added: “We look forward to working with the FRC, business, and other stakeholder bodies in bringing this about and to a sharper focus on principles-based regulation.”
David Hackett, research and development technical manager who is leading this work at the Association, said: “The existing Corporate Governance Code is 25 years old and has made a positive impact over time. However, we believe there is a need for companies to explain better how value is captured. Their strategic reports should show how good governance and the way in which value is created for stakeholders are connected, in order to improve society’s trust in business.”
CPD monitoring — accredited employers
All CIMA members are required to undertake CPD and keep a record of their development activities. To ensure standards are being maintained, we select a random sample of members each year to submit their CPD records for review.
Exemption from the CPD monitoring process is available to members who work for Premier Partner and CIMA Development Quality Partner employers. To check whether your employer is accredited, please visit www.cimaglobal.com/cimadev.
If you work for an accredited employer, it’s essential that your CIMA record is up to date so that we know who you are. To update your record, log in to your My CIMA account and select My details > My personal and employment details.
If your employer isn’t listed, and you believe it is currently accredited, please email cima.contact@aicpa-cima.com.
