CPE hours requirement for Chartered Accountants from 01-01-2024 onwards

With effect from 01-01-2024, the norms for CPE hours have changed for the CA members. The basic requirement for the CA members with respect to the CPE hours are as follows:-

1. For members aged less than 60 years and holding Certificate of Practice (except all those members who are residing abroad)

• Have to complete at least 40 CPE hours during the calendar year.
• Complete minimum 20 CPE hours through the structured learning method during the calendar year.
• The balance 20 CPE hours can be completed either through structured or unstructured mode.

2. For members (aged less than 60 years) not holding Certificate of Practice and all those members who are residing abroad whether practicing or not

• Have to complete at least 20 CPE hours either structures or unstructured learning as per the choice of the members during the calendar year.

3. For members (aged 60 years and above) holding Certificate of Practice

• Have to complete at least 30 CPE hours either through structured or unstructured learning as per the choice of the member during the calendar year.

Exemption to the rules of CPE hours

• The member will get exemption during the first year of its membership i.e. they are not required to comply with the CPE hours requirement whether they are practicing or not.
• The CPE hours requirement shall not be binding on the members who are aged 60 years and above and holding the Certificate of Practice.
• The exemption is available to judges of Supreme Court, High Court, District Courts and Tribunal.
• The exemption is available to Members of Parliament, Members of Legislative Assembly and Members of Legislative Council.
• The exemption is available to Governor of States.
• The exemption is available to members of Centre and State civil services.
• The exemption is available to Entrepreneurs (owners of Business (manufacturing) organizations other than professional services)
• The exemption is available to Judicial officers.
• The exemption is available to Members in Military services.

Temporary exemptions to the rules of CPE hours

• Female members for 1 calendar year on the ground of pregnancy.
• Physically disabled members having permanent disability of not less than 40% and above (this should be supported by medical certificates from Doctor registered with Indian Medical Council having qualification of M.D., M.S., etc.)
• Members suffering from prolonged critical disease / illness or other disability as may be specified or approved by CPED (this should be supported by medical certificates from Doctor registered with Indian Medical Council having qualification of M.D., M.S., etc.)

It is pertinent to note that for 2024 calendar year and onwards, the Council has decided for recommendatory 2 structured CPE hours on “Standards on Auditing” and 4 structured CPE hours on “Code of Ethics” for members who are required to complete minimum 20 structured learning hours during the calendar year.

Out of the 20 structured CPE hour requirement, 4 CPE structured hours should be completed in virtual mode through Digital learning hub till any further modifications.

CONSEQUENCES OF NON – COMPLIANCE TO THE CPE HOURS REQUIREMENTS

In case of non-compliance on part of the Members, 4 level systems have been implemented in order to enable the Members to complete the CPE hour requirement. This consequential provisions shall be operation from 01-01-2025 with respect to the non-compliances of the calendar year 2024.

Level I – In the first half year of the next calendar year

Member who has failed to comply with the CPE hour requirement during the calendar year, the member shall be given additional 6 months to complete the shortfall. The shortfall shall be twice the shortfall which has to be completed within 6 months of the next calendar year. The member has to complete the shortfall apart from the regular CPE hours during the calendar year. Members shall be notified the shortfall through e-mail. For instance, the member has not completed 5 CPE hours during the calendar year 2024, the member has to complete 10 hours which will be adjusted with the shortfall of the calendar year during the calendar year 2025 between1^st January to 30^th June.

Level II – In the second half year of the next calendar year

Member who has failed to complete the shortfall even during the level I i.e. the extended period of  6 months shall be classified to “Non-compliant” status on 1^st July and the details of non-compliance shall be displayed in CPE portal of the ICAI under particular member’s login till the member is fully compliant. During the Level II, the Member has to complete the shortfall by obtaining twice the shortfall of the CPE credit hours apart from the CPE hours requirement of the current calendar year. For instance, if the member fails to comply with the non-compliance during the Level I, then the member’s non-compliant status shall be visible in the CPE portal of the member and the member has to complete twice the shortfall of the non-compliance.

Level III – In the first half of the next to next calendar year

If the member fails to comply with the non-compliance of the CPE credit hours even during the Level II, then the CPE committee may resort on 1^st January of the following calendar year. The Member has to disclose the status of non-compliance of the CPE hours requirement in the Multi Purpose Empanelment form of ICAI. List of non-compliant members shall be provided to the Professional Development Committee of the ICAI by the CPE committee of ICAI.

For this shortfall also, the member shall be given the time period of 6 months i.e. 1^st January to 30^th June to complete the short fall.

Level IV – In the second half of the next to next calendar year

If the Member continues the non-compliance even after 1.5 years of the extended period, then the member or the firm which is otherwise eligible for the issuance of Peer review certificate, they shall be issued the Provisional Peer Review Certificate in case the Individual or the Partner of the Firm has not complied with the CPE hour requirements.

Final Peer Review Certificate shall be issued to the Individual or the Firm only after the member has completed the shortfall as well as CPE hour guidelines.

The member(s) shall be given additional 6 months’ time (i.e. from 1st July till 31st December) at this level to complete the shortfall by completing twice the shortfall in their CPE hour credit to be eligible to get fully compliant status for the respective year and for issuance of Final Peer Review Certificate. The member shall be informed in advance that if the default still continues then, such non-compliance would be liable to be referred to Disciplinary Directorate for necessary action in accordance with provision of CA Act, 1949.

Issuance of Good Standing Certificate to member shall be deferred at all levels until the member complies with the requirement under these CPE guidelines.

If the non-compliance continues even after the aforesaid multiple opportunities, the CPE Committee may refer the matter3 to Disciplinary Directorate for action as deemed fit for the violation of these guidelines.

Power to relax

The Council may relax any of the requirements of these guidelines either generally or by issuing specific instructions on case to case basis for reasons to be recorded in writing.

Note:

• Consequential provisions shall apply to non-complying members who have not complied/failed to complete CPE hours requirements as applicable e.f. 1st Jan 2024 and onwards i.e. members who are non-complied for the year 2023 and earlier are not proposed to be covered with these provisions.
• Level wise Consequential provisions apply to the non-compliance of CPE hours requirement by a member on yearly basis only i.e. these provisions do not apply for non-compliance of (2+2) recommendatory CPE hours of Code of Ethics and Standards on
• If a member is obtaining CPE hour Credits (ULA/SLA) in next year after being non- complied in preceding year(s), then such CPE hour credit (ULA/SLA) would be first adjusted against shortfall in previous non-complied year(s) and after such adjustment the remaining CPE hrs, if any, would be credited in current year.
• Currently, out of 20 Structured CPE Hours which is required to be completed by COP holder (less than 60 years of Age), completion of 4 CPE hrs is allowed in online mode in a If in case, member has acquired 4 or less Structured CPE Hours in online mode in a Calendar year, in next year non-complied balance Structured CPE hours of any category (whether in physical/virtual) is to be completed via Structured CPE hours events being organised in physical mode/certificate courses during the grace period provided in subsequent years.
• Date of submission of ULA (Unstructured Learning Activity) is preponed from 31st May of next year to 31st December of current
• If CPE Compliance criteria differs in relevant year of non-compliance and in extended period e. change of member status (COP/Non-COP)/ compliance requirement changed due to attainment of certain age/ Address change /given by the Council then it is to clarify that member need to complete twice of shortfall as per applicability of CPE Compliances in that year of Non-compliance through ULA (Unstructured Learning Activity). This is not applicable in case of permanent exemption provided in grace period
• There shall be no carry forwarding of excess CPE hours
• Relaxations/Exemptions (permanent/temporary) to members in cases like critical illness/physical disabilities/ pregnancy shall continue with these proposed provisions
• For Temporary exemption, extended period would start on 1st January of next year in which temporary exemption was granted
• After Level 2, flagging would be done in CPE/Peer Review /SSP portal to Non complied
• A provision has been created in CPE portal, to facilitate a monthly mail to all members of ICAI with compliance data of respective member. This Compliance data would also be visible to the member in their Dashboard at CPE Portal.