Responding to Non-Compliance with Laws and Regulations (NOCLAR)
This webpage contains pronouncements, guides and articles that are relevant to a new ethical standard: Responding to Non-compliance with Laws and Regulations
15 July 2017
Why do we need a new standard
When providing a professional service to a client or working for an employer, a professional accountant may come across an act or suspected act of non-compliance with laws and regulations (NOCLAR) committed or about to be committed by the client or employer. Professional accountants therefore have an ethical responsibility not to turn a blind eye on such matters but have been bound by the duty of confidentiality under the Code of Ethics for Professional Accountants. This has created a barrier for professional accountants to promptly disclose acts or suspected acts of NOCLAR to regulators and enforcement authorities in the public interest.
The new standard removes the duty of confidentiality for the specific purpose of reporting acts or suspected acts of NOCLAR. The standard also provides a framework to guide professional accountants on deciding how best to act in the public interest when they become aware of suspected or actual NOCLAR.