ICAEW Code of Ethics

About the Code

Chartered Accountants are expected to demonstrate the highest standards of professional conduct and to take into consideration the public interest. Ethical behaviour by Chartered Accountants plays a vital role in ensuring public trust in financial reporting and business practices and upholding the reputation of the accountancy profession.

The Institute's Code of Ethics (the Code) helps our members meet these obligations by providing them with ethical guidance. The Code applies to all members, students, affiliates, employees of member firms and, where applicable, member firms, in all of their professional and business activities, whether remunerated or voluntary. It replaced the Institute’s Guide to Professional Ethics on 1 September 2006.

The Code is based on the International Federation of Accountants (IFAC)’ Code of Ethics (PDF 345kb/98 pages) issued in June 2005, which itself has adopted the principles-based approach pioneered by the Institute. Additional guidance (indicated in the Code in italics) has been included by the Institute in areas that have been found to be of particular relevance to our members in the past or reflecting the particular environment in the UK.

The IFAC Code of Ethics does not apply directly to members of this Institute. However, the main accountancy bodies throughout the world, including the Institute and the CCAB bodies, are required to comply with the principles included in the IFAC Code of Ethics.

Structure of the Code

The Code sets out five fundamental principles, which guide members’ behaviour:

  • Integrity
  • Objectivity
  • Professional Competence and Due Care
  • Confidentiality
  • Professional Behaviour

Members are responsible for assessing threats to complying with those principles and for implementing safeguards where those threats are significant. The Code includes a number of Sections covering situations that members might be likely to encounter and suggests, or in some cases, requires, specific courses of action.

The Code of Ethics is available for download in Section 3 of the Members’ Handbook as is an overview setting out the basic approach, ethical conflict resolution framework, code contents and sources of advice.

Disciplinary action

The Institute is committed to enforcing the Code through disciplining members who do not meet reasonable ethical and professional expectations of the public and other members. The Institute assesses all complaints to determine if they constitute a disciplinary matter. Failure to follow the Code may result in a member becoming liable to disciplinary action.

Sources of Advice

Members who are in doubt as to their ethical position may seek advice from the following sources: