Important changes to ICAEW Code of Ethics if you work in financial services
ICAEW’s revised code of ethics became applicable from 1 January 2020. Many of the changes were cosmetic and focussed on making the document more accessible. It's been revised with easier navigation, smaller sections, more headings and rewritten with shorter sentences. However, there is one new area - NOCLAR.
Well what if you work in financial services and you come across misconduct or other breach of the regulations? The new Code of Ethics incorporates new sections introduced by the International Ethics Standards Board of Accountants (‘IESBA’), which consider what to do when a member suspects non-compliance with laws and regulations (‘NOCLAR’) by an employer or client.
In essence, the new provisions require that members should report the matter within the employer or client and if appropriate, to the auditors. This, in many ways mirrors the whistle blowing rules that apply to many firms already. The FCA's rules on whistleblowing procedures apply to deposit-takers (bank, building society or credit union) with over £250m in assets, PRA-designated investment firm and insurers subject to the Solvency II directive.