SUmmARY OF ReGULATIOn CHAnGeS - CPA Ontario · 2018. 10. 26. · ReGULATIOn CHAnGeS CPA Ontario has...

Amended nOVemBeR 19, 2018

SUmmARY OF ReGULATIOn CHAnGeSCHARTeRed PROFeSSIOnALACCOUnTAnTS OF OnTARIO

Chartered Professional aCCountants of ontario

suMMarY of reGulation ChanGes

CHARTERED PROFESSIONAL ACCOUNTANTS OF ONTARIO

SUmmARY OF ReGULATIOn CHAnGeS

CPA Ontario has taken the opportunity provided by the enacting of the new Chartered Professional

Accountants of Ontario Act, 2017 (the Act) to undertake a detailed review of its bylaws and

regulations to ensure that these documents:

• conform to, and operationalize, the Act,

• reflect best practices,

• are complete and easy to reference and understand, to make it easier for members to comply

with their obligations, and

• enable and support our technology transformation.



TABLe OF COnTenTSCOUnCIL nOmInATIOn And eLeCTIOn PROCeSS - ReGULATIOn 3-1

(FORmeRLY ReGULATIOn 3-1) ....................................................................................................................................................... 1

AdmISSIOn And ReGISTRATIOn COmmITTee - ReGULATIOn 6-1

(FORmeRLY ASPeCTS OF VARIOUS ReGULATIOnS, RULeS OF PRACTICe And

PROCedURe And TeRmS OF ReFeRenCe) .......................................................................................................................... 2

dISCIPLIne COmmITTee - ReGULATIOn 6-2 (FORmeRLY ReGULATIOn 7-3) ...................................................... 3

APPeAL COmmITTee - ReGULATIOn 6-3 (FORmeRLY ReGULATIOn 7-3) ........................................................... 4

AdmISSIOn TO memBeRSHIP, OBLIGATIOnS And STAndInG - ReGULATIOn 7-1

(FORmeRLY ReGULATIOn 4-1: AdmISSIOn TO memBeRSHIP; ReGULATIOn 4-3:

OBLIGATIOnS And STAndInG; And ReGULATIOn 6-2: APPLICAnT ReGISTRATIOn) .................................. 5

COnTInUInG PROFeSSIOnAL deVeLOPmenT (CPd)- ReGULATIOn 7-2

(FORmeRLY ReGULATIOn 4-5) ..................................................................................................................................................... 6

STUdenT ReGISTRATIOn, OBLIGATIOnS And STAndInG – ReGULATIOn 9-1

(FORmeRLY ReGULATIOnS 6-1 – STUdenT ReGISTRATIOn, 6-2 (PARTIAL) –

APPLICAnT ReGISTRATIOn, 6-6 – CPA PRACTICAL exPeRIenCe ReqUIRemenT, And 4-3 (PARTIAL) –

OBLIGATIOnS And STAndInG, ALOnG wITH VARIOUS COUnCIL POLICIeS).................................................... 7

LeGACY CA STUdenT ReGISTRATIOn, OBLIGATIOnS And STAndInG – ReGULATIOn 9-2

(FORmeRLY ReGULATIOnS 6-4 – LeGACY CA STUdenT ReGISTRATIOn, 6-2 (PARTIAL) –

APPLICAnT ReGISTRATIOn, 6-6 – CPA PRACTICAL exPeRIenCe ReqUIRemenT, And 4-3 (PARTIAL) –

OBLIGATIOnS And STAndInG, ALOnG wITH VARIOUS COUnCIL POLICIeS).................................................... 9

FIRmS - ReGULATIOn 10-1 (FORmeRLY ReGULATIOn 4-6) ............................................................................................ 11

dUeS And FeeS - ReGULATIOn 11-1 (FORmeRLY ReGULATIOn 4-2) ....................................................................... 12

deSIGnATIOnS And dISTInCTIOnS - ReGULATIOn 12-1 (FORmeRLY ReGULATIOn 4-7) ............................ 13

PROFeSSIOnAL LIABILITY InSURAnCe - ReGULATIOn 14-1 (FORmeRLY ReGULATIOn 4-4) .................... 14

COmPLAInTS - ReGULATIOn 15-1 (FORmeRLY ReGULATIOn 7-1) ............................................................................. 15

ReVIeweR OF COmPLAInTS - ReGULATIOn 15-2 (FORmeRLY ReGULATIOn 7-2) ........................................... 16

CAPACITY - ReGULATIOn 16-1 (FORmeRLY ReGULATIOn 8-2) ................................................................................... 17

PUBLIC ACCOUnTInG LICenSInG - ReGULATIOn 17-1

(FORmeRLY ReGULATIOn 9-1 And PAL eLIGIBILITY CRITeRIA POLICY) ............................................................... 18

PRACTICe InSPeCTIOn - ReGULATIOn 18-1 (FORmeRLY ReGULATIOn 10-1) ....................................................... 19

HOnORARY memBeRS - ReGULATIOn 19-1 (FORmeRLY A COUnCIL POLICY) ................................................... 10

edITORIAL CHAnGeS - ReGULATIOn 23-1 (new) ............................................................................................................... 21

STUdenT COde OF COndUCT (new) ...................................................................................................................................... 22



1

COUnCIL nOmInATIOn And eLeCTIOn PROCeSS - ReGULATIOn 3-1 (FORmeRLY ReGULATIOn 3-1)

PurPose:

This regulation sets out the Council nomination and election process outlined in the By-law. It has been

revised to include recommendations from the Council governance renewal process, as well as to provide

increased transparency.

Key Changes

Election Materials – Candidates must file more election materials so that members voting can make a

fully informed decision (definitions).

Call for Nominations - commences at least 90 days before the Annual meeting (“AGm”) and closes 60 days

before the AGm. Previously, the call for nominations began 60 days ahead of the AGm and closed 35 days

before the AGm. Both of these changes allow more time for the candidate vetting process (sections 4 and 10).

Validation and vetting – The current validation process of the election materials has been included and

the vetting process has been set out. Both of these changes provide increased transparency and clarity

to members seeking election (sections 9 to 15).

Responsibility – The responsibility for all nomination and election processes sits with the Governance and

nominating Committee and, ultimately, Council.



2

AdmISSIOn And ReGISTRATIOn COmmITTee - ReGULATIOn 6-1 (FORmeRLY ASPeCTS OF VARIOUS ReGULATIOnS, RULeS OF PRACTICe And PROCedURe And TeRmS OF ReFeRenCe)

PurPose

The Admission and Registration Committee (ARC), currently known as the membership Committee, hears

the following:

• appeals of determinations made by the Registrar.

• appeals of determinations made by the Vice President, Student Services.

• reviews decisions of the Public Accounting Licensing Board.

• Hearings for good character and credibility.

The ARC mandate and jurisdiction have been clarified and consolidated into this regulation from various

documents in which they are currently found.

The ARC now has jurisdiction to make decisions of good character and credibility, and any function

inconsistent with its adjudicative mandate has been removed.

Key Changes

Jurisdiction and Structure – All relevant aspects of the ARC’s jurisdiction and structure are set out, including:

• the types of matters it deals with (section 3),

• its composition (sections 4-6),

• quorum (sections 7 and 8),

• which hearings are oral or in writing (sections 11 and 21),

• the standard to be applied in regard to each type of hearing (sections 14, 22 and 35), and,

• appeal rights (sections 17, 18, 27, 33 and 36).

Public Notice – In situations where a notice to the public is to be issued of a hearing, the requirements

and content of the notice, particularly for hearings into good character and credibility, are set out

(sections 42, 43).



3

dISCIPLIne COmmITTee - ReGULATIOn 6-2(FORmeRLY ReGULATIOn 7-3)

PurPose

The discipline committee hears allegations of misconduct made against members, students and firms.

The regulation sets out the jurisdiction of the committee, including the sanctions it may impose. much

of what is contained in the new regulation was in the previous one, as there has been little change to the

discipline hearing process.

Key Changes

Jurisdiction and Structure - All aspects of the discipline Committee’s jurisdiction (what it may do)

and structure (how it functions) have been consolidated and set out in one place for transparency,

consistency, and completeness. This includes: terms of reference, rules of practice and procedure, and

policy. (sections 2-8).

Incapacity - we have added a process for the committee to refer a member to the Registrar as a

potential capacity matter. A capacity concern arises if it appears a member is incapable of meeting his or

her obligations by reason of physical or mental illness, condition or disorder, other infirmity, or addiction

to or excessive use of alcohol or drugs.

Also, a procedure for dealing with persons who are incapable of responding to allegations has been

created (sections 41-43).

Reconsiderations – The conditions for the committee to reconsider its own decision (without there

needing to be an appeal) have been set out for completeness (sections 21-29).

Readmission – If a member is revoked or a student or firm deregistered by the order of the discipline

Committee, any readmission requires a hearing before that committee. The procedure for that hearing

has been included for clarity (sections 30-37).



4

APPeAL COmmITTee - ReGULATIOn 6-3(FORmeRLY ReGULATIOn 7-3)

PurPose

The Appeal Committee hears appeals from:

• decisions of the discipline and Capacity Committees.

• decisions of good character and credibility made by the Admission and Registration Committee.

This regulation sets out what this committee does, and how it functions. much of what is contained in the

new regulation was in the previous one, particularly with respect to the discipline hearing process.

Key Changes

Jurisdiction and Structure - All aspects of the Appeal Committee’s jurisdiction (what it may do)

and structure (how it functions) have been consolidated and set out in one place for transparency,

consistency, and completeness (sections 2-8). This includes its: terms of reference, rules of practice and

procedure, and policy.

Incapacity - we have added a process for the committee to refer a member to the Registrar as a potential

capacity matter. A capacity concern arises if it appears a member is incapable of meeting his or her

obligations due to any of the following:

• physical or mental illness, condition or disorder, other infirmity, or

• addiction to or excessive use of alcohol or drugs.

Also, a procedure for dealing with persons who are incapable of responding to allegations has been

created (sections 30-32).

Reconsiderations – The conditions for the committee to reconsider its own decision (without there

needing to be an appeal) have been moved from the Rules of Practice and Procedure into the regulation,

so that relevant information is found in one place (sections 14-18).

Readmission – If a member, firm, or student is refused membership or registration, or a member is

revoked or student or firm deregistered by the order of the Appeal Committee, any re-admission or

re-registration requires a hearing before that committee. The process for that hearing has been set out,

along with the role of the Registrar, so that members, students, and firms can easily understand the

steps (sections 19-25).



5

AdmISSIOn TO memBeRSHIP, OBLIGATIOnS And STAndInG - ReGULATIOn 7-1(FORmeRLY ReGULATIOn 4-1: AdmISSIOn TO memBeRSHIP; ReGULATIOn 4-3: OBLIGATIOnS And STAndInG; And ReGULATIOn 6-2: APPLICAnT ReGISTRATIOn)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) requires CPA Ontario to admit,

govern and regulate members. The framework for this is set out in the By-law, and the details are included

in this regulation. For the purpose of clarity, completeness, user-friendliness, and transparency, this

regulation consolidates the provisions of three previous regulations.

Key Changes

Admission of members from certain other accounting bodies – individuals applying from accounting

bodies with which CPA Ontario has agreements can apply directly for membership once they have

completed any pre-conditions; they no longer have to register as applicants. (sections 11, 12).

The definition of “resident” has been simplified to clarify the original intent of anyone who has landed in

Canada (with certain exceptions) as well as anyone deemed to be a resident under the Income Tax Act

(section 1.4)

Extension of Time – the Registrar can extend deadlines set out in this regulation in extraordinary

circumstances (section 2).

Inactive Admission Applications – if the Registrar requests information or documents and receives no

response in 60 days, the application for admission shall be closed (section 9).

Good Character and Credibility – In any case in which the Registrar is not satisfied the person seeking

admission is of good character or credible, the matter is referred to a hearing before the Application and

Registration Committee (ARC) (sections 14, 15). There is the ability to appeal decisions of the ARC to the

Appeal Committee (sections 23-26).

Bankruptcy –new provision allowing the Registrar to inform a member’s employer or prospective

employer of a bankruptcy (section 31.2.5).

Reapplication – a person who is refused admission must now wait five years to reapply for admission,

except in limited circumstances (section 39).

Readmission – provisions for readmission have been clarified. A former member seeking readmission,

who has not been a member of an accounting body for more than ten years, must now register as a

student (section 56); the readmission requirements for those revoked through an order of an adjudicative

committee have been clarified (they must have a hearing before the adjudicative committee) (section 57).



6

COnTInUInG PROFeSSIOnAL deVeLOPmenT (CPd)- ReGULATIOn 7-2(FORmeRLY ReGULATIOn 4-5)

PurPose

This regulation sets out continuing professional development requirements for members, including new

obligations that will take effect January 1, 2019.

Key Changes

Ethics – Starting with the three year period ending 2021, members must include at least four verifiable

hours in ethics in their verifiable CPd hours. (Section 2.2)

Rolling three year period – Currently, the three year period for completing the 120 hours of CPd is fixed,

with the last one ending on december 31, 2018. As of January 1, 2019, the three year period will be rolling.

This means that every April members will report on CPd for the previous three years, and they must

declare every year they have completed 120 hours over the previous three years. (Section 1.8)

Public Accounting Licensees – Specific CPd requirements for licence-holders have been moved to this

regulation. Licensees who perform audit functions have a new obligation: their CPd must develop and

maintain the competencies required for their role, demonstrated through learning outcomes and an

attestation. The specifics are set out in section 6 and Schedule A of the regulation.

Plans of Action –

There are two changes to Plans of Action:

• members are no longer limited to one plan of action in a three-year period.

• members must file a plan of action if they have not fulfilled their required CPd within 14 days

of their annual declaration. They then have 120 days from the day the plan of action is filed to

complete the plan and attest to their completion. (Sections 9 – 11). This differs from the current

regulation, which requires the Registrar to approve the plan before it is undertaken.

Documentation - the member must retain documentation of CPd hours to be provided on any

compliance audit. (Sections 18 and 19)

Exemptions – exemptions from completing the required CPd hours are now consolidated in one place,

and the circumstances for each category are set out. (Section 12) Also, a member no longer needs to

provide documentation to prove their circumstances at the time of their request, but they must retain

documentation for at least five years for any compliance audit. (Sections 18 and 19)

Reporting Issuer – The definition of reporting issuer has been changed to match the definition in the

Securities Act. (Section 1.6.1) The current definition is taken from Rule 204 of the Code of Professional

Conduct, and excludes entities whose capitalization and assets are each less than $10 million. That

exemption will no longer exist, which means some retired members serving on the board of a reporting

issuer who were once exempt from CPd will, starting in 2019, have to complete full CPd hours. (Schedule B)



7

STUdenT ReGISTRATIOn, OBLIGATIOnS And STAndInG – ReGULATIOn 9-1(FORmeRLY ReGULATIOnS 6-1 – STUdenT ReGISTRATIOn, 6-2 (PARTIAL) – APPLICAnT ReGISTRATIOn, 6-6 – CPA PRACTICAL exPeRIenCe ReqUIRemenT, And 4-3 (PARTIAL) – OBLIGATIOnS And STAndInG, ALOnG wITH VARIOUS COUnCIL POLICIeS)

PurPose:

This regulation outlines the process for applying for registration as a student and the rules governing

students, including practical experience and education requirements. For the sake of clarity,

transparency, and completeness, this regulation consolidates three previous regulations as well as a

number of related Council policies.

The regulation includes a new Schedule, which combines the national CPA Practical experience

Requirements (CPA PeR) with CPA Ontario modifications, and any duplication in the Student Regulations

has been eliminated. There is no substantive change in practice experience requirements; these changes

were made for ease of understanding and centralize the requirements in one document. duplication with

the CPA Canada Harmonized education Policies (CPA HeP) has also been eliminated; and there are no

changes to the CPA HeP as a result of this process.

All matters relating to student application, registration and completion of the CPA Certification Program

have been included in the regulation:

• the CPA Ontario Practical experience Requirements;

• the Academic Code of Conduct;

• other current Council Policies relating to students; and,

• a new Student Code of Conduct.

These are all now appended to the regulation.

Key Changes:

General -

• In revising the Student Regulations, Student obligations, entitlements and processes have been

aligned with member obligations where it makes sense to do so, consistent with best practice and

administrative law principles.

• Additional detail with respect to suspension, reinstatement, deregistration and reregistration has

been added for clarity and certainty.

Definitions - certain definitions have been clarified, including “unsuccessful attempts” in a module or

course (section 1).

Extension of Time - the Registrar/Vice President, Student Services (VPSS) can extend deadlines set out

in this regulation, in extraordinary circumstances (section 2).



8

Registration - additional stipulations are provided where the Registrar/VPSS may refuse an application

for registration (sections 5-7). Also, the deadline for when a student transferring from another province/

region must discontinue/terminate their registration with the other body has been reduced from three

months to 60 days (section 11).

Inactive Applications - if a response is not received from an applicant within 60 days, CPA Ontario may

close the application (section 8). This is to aid staff in managing abandoned applications.

Good Character and Credibility - if the Registrar/VPSS is not satisfied that the person seeking

registration is of good character, or in circumstances where an assessment of credibility is required, the

matter is referred to a hearing before the Application and Registration Committee (ARC) (sections 13-21,

48-51). There is an appeal from decisions of the ARC to the Appeal Committee.

Bankruptcy - the process by which the Registrar/VPSS assesses bankruptcy on registration and thereafter is

clearly spelled out (sections 26-31), and there is a new provision that the Registrar/VPSS may impose that a

bankruptcy be disclosed to employers/prospective employers as a condition of registration (section 30.2.5).

Resignation - added clarity on the conditions for a student to resign (sections 40-42)

Suspension – the circumstances leading to suspension are detailed (section 43) as well as the impact on

student rights and obligations (section 44). Reinstatement from suspension is also detailed (section 45).

Deregistration – following suspension, a student is deregistered after 2 months (section 46), and the

appeal process is clearly set out (sections 60-64).

Reregistration (after deregistration) – students who are deregistered can only reregister in exceptional

circumstances (section 58). Students who resigned while discipline proceedings were outstanding cannot

reregister or apply for the Advanced Certificate in Accounting and Finance (section 41.1). Students who

are deregistered by an adjudicative committee must have a reregistration hearing before that committee

(sections 56-59). The appeal process is set out (sections 60-64).

Reapplication (after registration refused) - there is now a 5-year waiting period before a student is

permitted to reapply, except in certain circumstances (section 36).

CFE – students who have been allowed to conditionally write the CFe must provide all outstanding

documentation by a specified date. Failure to provide the required documentation by the deadline will

result in an unsuccessful attempt (section 87).

Council Policies – the following policies have been added as Appendices:

• Academic Code of Conduct Policy;

• Transcript Assessment Policy;

• Transfer Credit Policy; and,

• 51 Credit-Hour Transfer Credit Policy.

Practice Prohibition – it is now explicit that students are not authorized to practise public accounting or

provide accounting services to the public except under supervision of a member in good standing and

within a firm that is appropriately registered (section 2.5.10.3 of the CPA Ontario PeR).



9

LeGACY CA STUdenT ReGISTRATIOn, OBLIGATIOnS And STAndInG – ReGULATIOn 9-2 (FORmeRLY ReGULATIOnS 6-4 – LeGACY CA STUdenT ReGISTRATIOn, 6-2 (PARTIAL) – APPLICAnT ReGISTRATIOn, 6-6 – CPA PRACTICAL exPeRIenCe ReqUIRemenT, And 4-3 (PARTIAL) – OBLIGATIOnS And STAndInG, ALOnG wITH VARIOUS COUnCIL POLICIeS)

PurPose:

This regulation outlines the process for Legacy CA Students to complete their registration period and

requirements. Registration under this regulation closed in February 2015, and all Students under this

regulation must complete their program by February 2020, or transition to Regulation 9-1.

Key Changes:

General -

• Former Regulations 6-4 (Legacy CA Student Registration), 6-6 (Practical experience

Requirements), 4-3 (Obligations and Standing) and 6-2 (Applicant Registration) (insofar as they

relate to Legacy CA Students) have been combined.

• A CPA Ontario Practical experience Requirements document has been created to combine the

national requirements with the CPA Ontario modifications, and any duplication in the Student

Regulations has been eliminated.

• duplication between the Student Regulations and the CPA Canada Harmonized education Policies

has also been eliminated.

• All matters relating to Student registration have been elevated to Regulations: the CPA Ontario

Practical experience Requirements, the Academic Code of Conduct, other current Council

Policies relating to Students, and a new Student Code of Conduct are now appended to the

Student Regulations.

• In revising the Student Regulations, Student and member obligations, entitlements and processes have

been aligned as much as possible, consistent with best practice and administrative law principles.

• Additional detail with respect to suspension, reinstatement, revocation and reregistration has been

added for clarity and certainty.

Extension of Time - Registrar/Vice President, Student Services (VPSS) discretion to extend deadlines set

out in the regulation in extraordinary circumstances is clearly spelled out (section 2).

Bankruptcy - Registrar/VPSS assessment of bankruptcy throughout the registration period is clearly

spelled out (sections 9-13). new provision (section 12.2.5) states that Registrar/VPSS may impose as a

condition of registration that a bankruptcy be disclosed to employers/prospective employers.

Suspension - greater detail on circumstances leading to suspension (section 17) and the impact on

Student rights and obligations (section 18); new hearing and appeal rights if suspension depends on a

finding of credibility (sections 23-30); greater detail on reinstatement from suspension (section 19).



10

Deregistration - listing of what will cause deregistration and in what timeline (section 21) and appeal

process clarified (sections 31-35).

Accommodation - greater detail on accommodation, special consideration and special circumstances

(sections 69-71).

Council Policies - new Appendices contain what were previously separate policies:

• Academic Code of Conduct Policy

• Transcript Assessment Policy

• Transfer Credit Policy

• 51 Credit-Hour Transfer Credit Policy

• Practical experience requirements have been consolidated into a new CPA Ontario Practical

experience Requirements document, which is now an Appendix.

• The new Student Code of Conduct is now an Appendix.



11

FIRmS - ReGULATIOn 10-1(FORmeRLY ReGULATIOn 4-6)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) sets out certain requirements for

firms, and permits CPA Ontario to regulate firms through bylaw and regulation.

Key Changes

Registration –

• Clarifies the requirement to register each office of a firm (section 2);

• Requires disclosure of any related businesses and practices (section 3);

• Confirms students may not register firms (section 7);

• Confirms related businesses and practices are not to be promoted as a firm (section 8);

• Clarifies responsibilities of the Firm Representative and contact information (section 6).

Firm Name – provides for the Registrar’s pre-approval of a firm name, codifying an existing practice, and

removes the six month grace period for using a non-compliant name (section 10 and 13). The Registrar

may suspend the Firm Representative if the firm uses a non-compliant name (section 14).

Surrender of Registration – a firm cannot apply to end its registration if it:

• is the subject of a practice inspection or reinspection;

• is the subject of a discipline proceeding;

• has not fully complied with a settlement agreement or order of a committee;

• has not demonstrated it will maintain discovery insurance for six years,

• owes any dues.

(section 27)

Suspension – the Firm Representative will be suspended if the firm breaches any of its obligations (as

set out in the By-law, section 10.7.2), and the Firm Representative will have their membership revoked if

the breach continues (section 30 and 33). The firm will be suspended and then deregistered if it fails to

comply with professional liability insurance requirements (section 29 and 32).



12

dUeS And FeeS - ReGULATIOn 11-1(FORmeRLY ReGULATIOn 4-2)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) provides that CPA Ontario, through

by-law, may establish dues and fees. The details of those dues are set out in this regulation, as well as the

parameters for setting fees.

Key Changes

Differentiation between Dues and Fees – there is now a clear difference between what is considered a

due and what is considered a fee.

A due is a regulatory requirement and non-payment will lead to sanctions such as suspension and

revocation. A fee is a payment for a service or product, and non-payment results in the service or product

not being provided (section 1).

All dues are listed in the Schedule to the regulation; fees will be posted on the website.

Reductions and Deferrals – all reductions (for member dues) and deferrals (for student dues) are set out,

along with the criteria for each category (sections 11 – 13 and Appendices).

Compliance Audit – Previously, when applying for certain reduced dues, there was a requirement to

provide proof of meeting the criteria at the time of application. This is no longer required as it has been

replaced with a compliance audit process (sections 16 – 19). As well, proof must be retained for at least

three years and produced when requested by CPA Ontario (sections 14 and 15).

Reduced Student Dues – the reduced annual student dues for students from recognized co-op programs

is now available to all full-time undergraduate students.

Fees – fees are addressed separately, with provisions as to how they are set (section 21), the impact of

their not being paid on time (section 22) and when CPA Ontario may retain a fee and not provide the

service (section 23).



13

deSIGnATIOnS And dISTInCTIOnS - ReGULATIOn 12-1 (FORmeRLY ReGULATIOn 4-7)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) provides for the use of certain

designations exclusively by members of CPA Ontario and permits CPA Ontario to regulate their use. This

regulation details the issuance and use of designations, and addresses initials and distinctions.

Key Changes

Legacy Members – permits the Registrar to issue a legacy designation to an individual admitted pursuant

to an agreement with another accounting body being honoured by CPA Ontario, if that agreement so

specifies (section 6).

Fellows– permits a Fellow from another province, as well as those made Fellows by CPA Ontario, to use

the “F” before all designations granted by the Registrar (not just the CPA) (section 14).

Firms– extends the time during which a firm may continue to use a legacy designation as part of their

firm name from december 31, 2018 to december 31, 2020 (section 20).



14

PROFeSSIOnAL LIABILITY InSURAnCe - ReGULATIOn 14-1 (FORmeRLY ReGULATIOn 4-4)

PurPose

Under the Chartered Professional Accountants of Ontario Act, 2017 (“Act”) CPA Ontario is authorized

to prescribe the requirements for professional liability insurance that must be maintained by firms and

members. This regulation sets out the details of those requirements.

Key Changes

Discovery Insurance – the requirement to maintain discovery insurance for six years following the

cessation of practice no longer applies to a firm that never had a client (section 10).

Proof of Coverage – A firm must provide proof of coverage before engaging in practice (currently there

is a two month grace period) and must provide proof of renewal within five days of expiry (rather than 60

days) (section 11).

Compliance – CPA Ontario may conduct periodic reviews of a firm’s maintenance of the required

insurance and may contact the firm’s insurance company to confirm coverage and any expiry,

cancellation, or termination of the policy (section 12).

Failure to Comply – if a firm fails to comply with the requirements of this regulation, both it and the Firm

Representative shall be suspended. If the firm does not come into compliance it shall be deregistered

and the Firm Representative’s membership will be revoked thirty days later (currently it is sixty days)

(section 14).



15

COmPLAInTS - ReGULATIOn 15-1(FORmeRLY ReGULATIOn 7-1)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) provides a framework for receiving,

reviewing, investigating and prosecuting complaints. In general, this framework is unchanged from

previous legislation; however, the Act does include some new provisions to enhance the protection of

the public interest and the efficiency of the complaints process which have been incorporated into the

regulation.

Key Changes

Who may make a complaint – Complaints have been split into internal and external complaints.

Internal complaints are those made by employees or committee members of CPA Ontario in that

capacity. external complaints are those received from any other source.

Information from any source coming to the attention of CPA Ontario may also be considered an internal

complaint (sections 2-7).

Delegation – The Act now permits the Professional Conduct Committee (PCC) to delegate the

review and ordering of an investigation. In the regulation, this delegation is to the director, Standards

enforcement. delegation will enable matters to move more efficiently through the process and protect

the public interest (section 11).

Referral of Capacity matters – The PCC or its delegate still has the ability to refer a matter for

consideration as a potential capacity application to the Registrar. This is unchanged from the current

regulation. Previously, such a referral would result in the deferral or discontinuation of an ongoing review

or investigation of a complaint (section 39). now, the review or investigation will continue, and the PCC

will take into account any information relating to “mental illness, condition, disorder or other infirmity or

addiction” in determining how to deal with the complaint (section 40).



16

ReVIeweR OF COmPLAInTS - ReGULATIOn 15-2(FORmeRLY ReGULATIOn 7-2)

PurPose

Although it is not required by the Chartered Professional Accountants of Ontario Act, 2017 (“Act”), CPA

Ontario has a Reviewer of Complaints. This individual reviews matters, at the request of a complainant,

if the Professional Conduct Committee (PCC) does not proceed to lay allegations of professional

misconduct. The Reviewer may require the PCC to reconsider a matter if the Reviewer determines the

process followed by the PCC in making its original determination was flawed.

Key Changes

Who can ask for a review – Complaints are defined as either internal complaints, which are - those made

by employees or committee members of CPA Ontario in that capacity, and external complaints, which are

complaints from any other source. There is no right of review of an internal complaint (section 2).

What is reviewed – Clarity has been added to confirm that the Reviewer only reviews what was

presented to the PCC, and not any new information (section 9).

Powers of the Reviewer – what a Reviewer assesses has been clarified and includes only:

• whether the process for the review and investigation of the complaint was followed;

• whether anyone involved in the determination had a personal interest in the subject matter of the

complaint; and,

• whether all the information provided was considered (section 10).



17

CAPACITY - ReGULATIOn 16-1(FORmeRLY ReGULATIOn 8-2)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) provides a mechanism for assisting

members who are incapacitated while making sure the public is protected. If, after a hearing, a member

is found to be incapable of meeting his or her obligations due to physical or mental illness, condition or

disorder, other infirmity or addiction to or excessive use of alcohol or drugs, the Capacity Committee can

place restrictions and conditions on the member’s ability to practise, up to and including suspension.

Key Changes

Referrals to the Registrar – The Registrar has the responsibility to consider whether a member might be

incapacitated, and can receive information or a referral from a wide variety of sources. (Section 2). If the

Registrar, following a formal investigation, believes a member may be incapacitated, the Registrar brings

the matter to the Capacity Committee for a hearing.

Powers of the Registrar – The Registrar monitors the member for compliance with any restrictions or

conditions ordered by the Capacity Committee and may, in certain circumstances, suspend the member

for not complying. (Section 30). However, the Registrar no longer has the power to suspend a member

before a capacity hearing.

Other Proceedings – Referring a matter to the Capacity Committee does not necessarily end any

discipline investigation or proceedings into an allegation of misconduct against a member, as the

proceedings have different purposes.



18

PUBLIC ACCOUnTInG LICenSInG - ReGULATIOn 17-1(FORmeRLY ReGULATIOn 9-1 And PAL eLIGIBILITY CRITeRIA POLICY)

PurPose

CPA Ontario is an authorized designated body under the Public Accounting Act, 2004, permitted by the

Public Accountants Council for the Province of Ontario (PAC) to issue and renew:

• public accounting licences (for members), and

• certificates of authorization (for registered professional corporations).

This regulation set out the licensing requirements for members and professional corporations, in

conformity with the Standards and Guidelines of the PAC.

Key Changes

CPD Requirements – These requirements have been moved to the Continuing Professional development

Regulation, to avoid duplication.

Eligible hours for licence renewal – now states explicitly that compilations, with or without a notice to

reader, may be counted towards a renewal (section 1.13).

Good Character and Credibility–If the Public Accounting Licensing Board (PALB) is not satisfied the

member applying for a licence is of good character or credible, the matter is referred to a hearing before

the Application and Registration Committee (ARC) (section 51).

Other hearings – the PALB may refer other matters to the ARC for a hearing, in its discretion (section 52).

Suspension and Revocation – clarification around the circumstances under which the PALB may suspend

or revoke a licence (sections 22-24).

Deferral and Denial – PALB no longer has the power to defer consideration of a licence application, as

licences are renewed annually.

Circumstances in which a licence or renewal may be denied are clarified (sections 44-46) and a decision

to deny may be reviewed by the ARC (section 47).

PALB Structure and Powers – All aspects of the PALB’s jurisdiction (what it may do) and structure

(how it functions) have been consolidated and set out in one place for transparency, consistency, and

completeness (sections 2-8). All committee members (other than public representatives) must hold, or

have recently held, a public accounting licence (sections 32 and following).

Appendix – the PAL eligibility Criteria Policy has been made an appendix to the regulation, and the

authority of the PALB to grant licences under it has been clarified (section 11).



19

PRACTICe InSPeCTIOn - ReGULATIOn 18-1(FORmeRLY ReGULATIOn 10-1)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) provides for a practice inspection

program. This regulation sets out the details of how this program operates, and the member and firm

obligations under the program.

Key Changes

Selection for Inspection – The director, Practice Inspection may determine whether more frequent

inspections or re-inspections of a Practising Unit are required. Previously, the Practice Inspection

Committee made this determination on the recommendation of the director. This change better serves

the public interest by increasing the efficiency of the program (section 7).



20

HOnORARY memBeRS - ReGULATIOn 19-1(FORmeRLY A COUnCIL POLICY)

PurPose

The Chartered Professional Accountants of Ontario Act, 2017 (“Act”) provides that CPA Ontario may

establish how honorary members are elected and also establish their rights and duties. The particulars

have been set out in a Council policy; however, since members elect honorary members, that policy has

been made a regulation, resulting in increased transparency and clarity.

Key Changes

The regulation aligns very closely with the policy. Council presents candidates for honorary membership

to the members, and members then vote.

Some duplication and unnecessary detail in the policy has been removed, and some gaps remedied.

For example, an honorary membership may be revoked by a vote of 2/3 of the members at a members

meeting. That is unchanged from the policy, but the process by which it is to occur has now been set

out, to ensure procedural fairness.



21

edITORIAL CHAnGeS - ReGULATIOn 23-1 (new)

PurPose

The new By-law contains a provision permitting CPA Ontario to make minor revisions to the regulations

or the Bylaws that do not affect the meaning of the provisions. The revisions must only be editorial in

nature: to correct errors, update descriptions such as the names of legislation, and remove provisions

that are spent, etc. This regulation sets out the details of what can be changed, and how the changes are

made. Any amendments affecting the meaning of a provision will still be taken to the membership (in

the case of the bylaws) or the Council (in case of regulations).



22

STUdenT COde OF COndUCT (new)

PurPose

Students, by their registration and continuing registration with CPA Ontario, are subject to our governing

documents, including the by-laws and regulations.

A new Student Code of Conduct has been created to set out the principles of professional responsibility

that students are required to uphold. Students are also subject to Rule 204 of the CPA Ontario Code of

Professional Conduct, which is incorporated by reference into the Student Code of Conduct. All students are

subject to the Student Code of Conduct, and are deemed to be aware of and understand all its provisions.

Any breach of the Student Code of Conduct may result in a disciplinary proceeding being taken and

sanctions, up to and including deregistration, ordered against the student. The Student Code of Conduct

is an Appendix to the student regulations (Regulations 9-1 and 9-2).

SUmmARY OF ReGULATIOn CHAnGeS - CPA Ontario · 2018. 10. 26. · ReGULATIOn CHAnGeS CPA Ontario has...

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