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The report provided 37 recommendations to improve the organisation’s disciplinary framework.
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CA ANZ publishes its professional conduct review
07 June 2023
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10 minute read
CA ANZ has released the results of its Professional Conduct Framework Review that it instigated in the wake of the KPMG exam cheating scandal where hundreds of employees who were members were involved.
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The review was conducted by an 11-member committee and jointly chaired by CA ANZ chair John Palermo and CEO Ainslie van Onselen.
An independent assessment of the review's recommendations was conducted by former federal court justice Dennis Cowdroy who also provided some of his own suggestions.
Ms van Onselen said the review was comprehensive in its focus on ensuring CA ANZ’s disciplinary bodies operated under clear processes that served the best interests of members and the public.
“As well as a range of procedural and efficiency improvements, the recommendations extend the existing features of the disciplinary framework to address events involving firms and the systemic and cultural issues underpinning them, that reflect poorly on our profession,” said Ms van Onselen.
“We will continue to reinforce the work we do to support our members’ deep knowledge and commitment to the Code of Ethics, which is a fundamental requirement of their ongoing membership.”
“This includes the wealth of resources available in our ethics hub as well as continuing to mandate ethics CPD for all members.”
Some of the key recommendations of the 37 provided from the review included:
- A fivefold increase in the maximum fines for events involving firms such as adverse findings by courts or regulators, criminal or civil convictions and conditions on firm registrations with regulators. This meant a maximum fine from the Disciplinary Tribunal rose from $50,000 to $250,000 and from the Professional Conduct Committee from $25,000 to $100,000.
- Make it so CA ANZ disciplinary bodies could undertake an investigation into the conduct of former Australian members - closing a loophole that allows members to avoid punishment by terminating their membership.
- The creation of extensive guidance materials for all members about the independent disciplinary process, their personal self-disclosure obligations and making ethical commitments clear.
- The introduction of administrative and case management enhancements to reduce the complexity of disciplinary proceedings. This would include the addition of a conciliation process where complainants and CA ANZ members could engage in a facilitated alternative dispute resolution process.
- Enable greater transparency by synthesising the decisions of the disciplinary bodies into a single online public register, including statistics and data about complaints dismissed and grounds for dismissal.
- Do more to reinforce CA ANZ members' knowledge and commitment to the Code of Ethics and the importance it has for their ongoing membership.
The association said those significant measures and recommendations - such as substantially increasing their maximum fines and more - showed that they used the “process to test the limits of our framework in the public interest and in line with community expectations.”
Ms van Onselen said while some recommendations were already actioned, others would need to be voted on by its members in the lead-up to its AGM in October.
“I encourage all of our members to engage with this process, and look forward to discussing the review in further detail at our October AGM,” said Ms van Onselen.
The complete Professional Conduct Framework Review and the Independent Review of Disciplinary Framework undertaken by Mr Cowdroy will be available on CA ANZ’s website to read through.
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