Strategic objectives and initiatives update
The strategic objectives of the Institute have been reconsidered and reordered within the parameters of the Council’s directions on repositioning of the Institute and under the three key areas of focus:
Delivering member value (professional development, member engagement and support, standard setting, and the qualification programme)
Proud to be a CPA (branding and communication) Advocacy for the profession
Many of the objectives and initiatives have been carried forward unchanged, or amended to reflect changing circumstances, and a number of new objectives have been introduced.
Delivering member value – professional development and member engagement
Objectives
Advanced identification of development needs and delivery of quality programmes and relevant support services.
Our service and support are recognized by members and students as meeting their needs.
Initiative no.
Initiatives
1.1
Provide cost effective training and other resources to ensure technical and enabling competencies, and add value to the career and personal development of members and students.
1.2
Identify and strengthen the learning and support requirements of members engaged in regulated activities.
1.3
Engage members on digitalization-related topics, explore collaborations and identify relevant information and resources to provide practical support in their digital transformation.
1.4
Effective engagement with sector groups (SMPC, PAIBC, YMC etc.) to identify expectations and support priorities of members and students. Leverage our global network to identify suitable resources for local adaptation and collaborate with third parties for the provision of member support and services.
1.5
Adopting a holistic approach in member support.
Delivering member value – standard setting and technical support
Objectives
Pursue the direction endorsed by Council for the Institute to take on the role of sustainability standard setter for Hong Kong.
Our professional standards are of high quality, equivalent to other leading capital markets, and reflect global and local market developments.
Our stakeholders understand and effectively implement and apply our professional standards.
Initiative no.
Initiatives
2.1
Engage with stakeholders and take the lead in responding to the first ISSB standard exposure drafts.
2.2
Proactively identify and understand local issues with the application of standards and design mechanisms to address the issues. Strengthen technical support services through workshops and seminars; access to support materials and tools; and development of more practical advisory services.
2.3
Bring Hong Kong aspects into international standard setting. Engage with local stakeholders and participate in key regional and international forums.
2.4
Continue to develop and maintain local standards and manuals (including the audit practice manual) addressing local needs not met by international standards (regulatory, legal, market demand etc.).
Delivering member value – Qualification Programme
Objectives
Our qualification is a premier, internationally recognized designation:
Our CPA qualifying process is robust and rigorous.
Our professional education and assessment match changing practices and expectations.
Initiative no.
Initiatives
3.1
Roll out the revised practical experience framework of the new Qualification Programme (QP).
3.2
Formulate plan for digitalization of the QP including computer-based examinations.
3.3
Review and maintain international recognition agreements on terms which are fair and mutually beneficial.
3.4
Conduct a curriculum review and gap analysis to develop the direction of the enhancement of the QP from 2022 to better accommodate career development of prospective accountants and employers’ expectations.
3.5
Promote the QP as the programme of choice for a career in both practice and business by equipping newly-qualified CPAs with the necessary professional competences to meet the needs of employers.
3.6
Explore the potential to offer interim qualifications at different exit points of the QP to fill the manpower gap.
Proud to be a CPA – branding and communication
Objectives
Promote a positive image commensurate with the contributions of the profession to society and be recognized by members, the business community and general public for those contributions.
Be recognized as a socially- responsible professional body.
Initiative no.
Initiatives
4.1
Develop and implement a communication strategy using streamlined channels and targeted messages for projecting a positive image of the profession among members and the public. Articulate the attributes and value contributions of professional accountants and tell a compelling story.
4.2
Expand on projects for social contributions.
4.3
Engage various stakeholders to advocate professional and social contributions of professional accountants to the society.
Advocacy for the profession
Objectives
Be recognized as a strong advocate for high standards of governance and ethics within the profession, the business sector and the wider community.
In light of the establishment of the International Sustainability Standards Board (ISSB) and Hong Kong regulators’ commitment to require Hong Kong listed companies to adopt ISSB standards, the Institute will develop and follow a step by step plan to become the Hong Kong sustainability standards setter.
Position the Institute as a knowledgeable, credible and legitimate voice in public discussion on issues that are key to the profession, the business community and wider society.
Initiative no.
Initiatives
5.1
Engage with relevant stakeholders, particularly the Financial Services and the Treasury Bureau (FSTB), the Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing Limited (HKEX), on the plan for introducing International Sustainability Reporting Standards (ISRS) to the Hong Kong market and the Institute becoming sustainability standard setter for Hong Kong.
5.2
Communicate and promote developments in all aspects of corporate reporting – including sustainability and environmental, social and governance (ESG) reporting.
5.3
Consider the way forward for reintroducing the requirement for qualified accountants in listed companies and engage with the government and regulators including HKEX.
5.4
Set a strategic focus on the GBA development and advocate for members interests and promote the opportunities available both from a PAIP and PAIB perspective.
5.5
Explore the further development of specializations (e.g. forensic accounting, business valuation) including, where appropriate, ethics and best practice guidance in specialist areas.
5.6
Strengthen public policy research work and advocacy, including the future role and positioning of the profession. Continue to monitor and comment on the HKSAR Government annual budget and other aspects of tax policy.
Smooth transition of regulatory role
Objectives
Ensure the quality of our members work commands public trust and confidence and meets latest legislative requirements. (From the commencement of the new regulatory regime, target 1 October 2022, investigation and discipline of all CPAs and practice units, and practice review of all practice units will be taken over by the Accounting and Financial Reporting Council (AFRC). For the period to 1 October 2022 relevant departments will focus on managing caseloads to transition with the AFRC, while maintaining appropriate standards of work. The Institute’s continuing role in respect of the quality of members work will be in the areas of qualification, professional development and member support.)
Initiative no.
Initiatives
6.1
Ensure the transfer of functions and responsibilities to the FRC under the regulatory reform is efficient and effective, including handling of disciplinary cases throughout transition and post commencement date as necessary. (In respect of all cases in progress and sent to Disciplinary Panels before 1 October 2022. Legislative provisions require that all cases in this position must be taken to completion by the Institute.)
6.2
With the confirmation of AML regulatory responsibilities under the new regime, the Institute will continue to set AML related guidelines.
Safekeeping of our constitution, governance and organization
Objectives
Our constitution, governance and organization structure befits a top-tier professional body, recognizes and reflects the positioning of the Institute under the new regulatory regime, and supports the sustainable development of the Institute and the profession.
The Institute has been in a structural deficit situation for a number of years (membership fees had not been increased since 2013, compared to other accountancy bodies where the increase in fees over the same period was around 30%). This must be addressed to secure the future of the Institute.
Initiative no.
Initiatives
7.1
Ensure governance structure is effective in discharging the Institute’s roles and meeting expectations of different stakeholders.
7.2
Review management structure and provision to ensure efficient and effective operation is maintained while achieving smooth transition into the new regulatory regime.
7.3
Identify ways to address the structural financial deficit with clear plans to achieve breakeven to ensure financial viability of the Institute.
