CPD Requirements

Dear SAIPA member,

SAIPA has adopted the IFAC 2014 Handbook of the Code of Ethics for Professional Accountants. According to Section 130.3 of the Handbook - “The maintenance of professional competence requires a continuing awareness and an understanding of relevant technical, professional and business developments. Continuing professional development enables a professional accountant to develop and maintain the capabilities to perform skilfully within the professional environment.”  Furthermore, the Continuing Professional Development of SAIPA subscribes to the IFAC 2014 Handbook, the SMO agreement that SAIPA has with IFAC and the International Education Standards 7.

SAIPA has also been given the privilege to be one of the Recognised Controlling Bodies (RCB) with South African Revenue Service (SARS). As a RCB all Tax Practitioners need to adhere to the good standing status that entails the following:

  • Tax Compliance (be in possession of a valid Individual Tax Clearance Certificate))
  • No criminal record as per (Section 234-237 of the Tax Administration Act 28, 2011).
  • Meet the minimum education requirements and maintain your Continuous Professional development (CPD)
  • Adhere to the SARS, SAIPA and IFAC Code of Conduct, By Laws and Constitution where applicable.

In terms of the aforementioned the CPD regulatory requirement by:

  1. compliance cycle of three years,
  2. minimum CPD hours of one hundred and twenty, and
  3. minimum of 50% verifiable and compulsory CPD hours, viz. 60 structured and 60 unstructured hours over the 3 year cycle.

The existing CPD process functions on a real-time three year rolling cycle which causes significant problems for members as a result of the effect of the rolling system. For example, for a rolling cycle ending 30 June 2015, if a member was in compliant as a result of having compulsory 12 CPD hours during July 2012. However, when the rolling system computes the CPD hours for the cycle ended 31 August 2015, the hours of July 2012 falls away which places the members at a disadvantage.

The following changes relating to CPD system will be implemented with effect from 01 January 2016:

  • The 3 year CPD cycle will still be applied, but the cycle will be based on a calendar cycle rather than an anniversary cycle. It is important to note that the CPD commencement date structure has changed from the election date of a member to a calendar year.
  • The compliance ending date for the 3 year cycle will be 31 December 2015 which will be used as the cut-off for the implementation of the new system.
  • With effect from 01 January 2016 the CPD for compliance purposes will be based on the minimum CPD requirements for the current year, viz. a minimum of 20 hours for both structured and unstructured CPD.
  • With effect from 01 January 2016, no CPD hours will be allowed to be carried forward provided prior approval is obtained from SAIPA.
  • Any new member during the year is deemed to be in good standing for that particular calendar year, i.e. such member must attend and accumulate CPD hours from the date of registration and submit the CPD hours throughout the calendar year. The CPD hours required for compliance will be apportioned based on the period of being a member for that year. The second of the cycle commences from January of the year following of him/her becoming a member for which the minimum CPD requirements must be complied with.
  • The good standing for CPD hours is valid for the following year, e.g. good standing at 31 December 2015 is valid until 31 December 2016.
  • CPD hours must be submitted on or before 31 January of the year following the end of the previous calendar year.  CPD compliance will be checked and validated on 31 January of the year following the cut-off date of 31 December of the immediate previous year.

For members who have not completed their 3 year CPD cycle, the hours for CPD compliance for good standing will be calculated proportionately, but the minimum annual CPD structured and unstructured requirements must be adhered to. Members admitted in 2013 will need to have accumulated the proportionate hours for 2013, 40 structured and 40 unstructured hours by the 31st of December 2015.

EXAMPLE: Member joined on 01 July 2013, the compliance CPD hours are as follows:

2013 – proportionate

20 hours = 10 & 10 [structured & unstructured]

2014

40 hours = 20 & 20 [structured & unstructured]

2015

40 hours = 20 & 20 [structured & unstructured]

Total hours at 31 December 2015

100 hours = 50 & 50 [structured & unstructured]

 

Similarly a members admitted in 2014 will need to have accumulated the proportionate hours for 2014 and 20 structured and 20 unstructured hours by the 31st of December 2015.

Existing SAIPA members who have been members of the Institute for more than three years must be in compliance for their 3 year CPD cycle by 31 December 2015, i.e. they need to have accumulated 60 structured and 60 unstructured hours by the 31st of December 2015.

The requirements for the different categories are as listed below:

DESIGNATION

STRUCTURED HOURS BREAKDOWN

 

UNSTRUCTURED HOURS IN TOTAL PER YEAR

TAX HOURS

ETHICS HOURS

ACCOUNTING/

IFRS

Other optional hours

TOTAL STRUCTURED PER YEAR

Professional Accountant(SA) or  Accounting Technician(SA)  and a Tax Practitioner with SARS

12

2

4

2

20

20

Professional Accountant(SA)or Accounting Technician(SA)    –Not a Tax Practitioner with SARS

4

2

4

10

20

20

 General CoTE member who are  not  Accounting Technicians(SA) or  Professional Accountants(SA)

12

2

4

2

20

20

 

Members who are currently not in good standing are urged to get their status in order by the 31st of December 2015. Members can check their status on their membership profiles (Briefcase).

SAIPA’s proposed strategy for urgently obtaining structured and unstructured hours is set out below.

The following online modules can be done at any given time provided you have a computer and internet access.

CPD online Products –Structured hours

Advanced Certificate in IFRS for SMEs

IFRS Fundamental e-Module

E- certificate on Independent Reviews

Certificate in IPSAS (International Public Sector Accounting Standards)

Past Webinar Recordings

CPD Unstructured hours

  • Hands on IT experience which involves new learning;
  • planned reading of specific articles in the financial press;
  • project work;
  • reading relevant articles in The Professional Accountant or in the journals of recognised professional bodies; SAIPA-professional-journals
  • regional committee work which develops transferable skills;
  • technical discussions with colleagues;
  • visits to other regions/organisations.

Consequences for Non-compliance

  1. Deregistration from SARS
  2. Disciplinary action
  3. Internal suspension

SAIPA would like to encourage all members to adhere to membership compliance. We cannot stress enough how important it is for members to be in good standing and avoid non-compliance.

If you have any questions, please contact the Membership Compliance Officer – Aysha Naino on anaino@saipa.co.za

 

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