Updates To Regulation 7-2: Continuing Professional Development

On June 18, 2021, CPA Ontario Council approved revisions to Regulation 7-2: Continuing Professional Development (CPD) to harmonize rules across Canada and align with international standards.

The revised CPD requirements help reduce the risk to the public by emphasizing the importance of continuous learning throughout a member’s career.

The following changes for new and retired members are for calendar years beginning January 1, 2022:

New members (if admitted through student Regulations (9-1 or 9-2)):

• will be required to complete full CPD in the year of admission if they are admitted on or before September 30 of the reporting year
• will be exempt from CPD if they are admitted after September 30 of the reporting year. This is for the year of admission only and to address concerns that new members admitted late in the year may not have enough time to fulfill the CPD requirements

This is a change from the current requirements which exempts all new members from CPD in the year of admission if admitted through student Regulations (9-1 or 9-2).

Retired members without a Public Accounting Licence (PAL) will be required to complete full CPD if they perform Reliance Services, including the following:

• serving on a board or similar governing body of a reporting issuer
• serving on the board or governing body of a Public Interest Entity
• providing accounting services to the public
• providing other professional services and the gross annual income from these services equals or exceeds the income test amount ($39,920 for 2021, reviewed annually and posted on the CPA Ontario website)

These changes eliminate the 50% CPD category for retired members. In addition, the definition of Reliance Services is amended to remove the CPD exemption for members providing accounting services to the public, while increasing the exemption income threshold for members performing other professional services.

Please also note the competence areas and learning outcomes have been updated for PAL holders and members applying for a PAL, who must undertake CPD activities directly related to the competencies needed to engage in the practice of public accounting, as set out in International Education Standard 8, Professional Competence For Engagement Partners Responsible For Audits Of Financial Statements (Revised).