The proposed exposure draft will be applicable from calendar year 2024 onwards (to be operational w.e.f. 1/1/2025 for non-compliances arising from the calendar year 2024).
Level I (from 1st Jan to 30th June) 2025
1. Member who fails to complete the CPE requirement by the end of the calendar year shall be given extended Period of 6 months i.e. till June 30 of the following year to make up for the shortfall, provided the member(s) shall make up for any shortfall in their CPE credit hours by obtaining twice the shortfall of CPE hours. This would be in addition to the regular CPE hours requirement for the current calendar year. Member(s) shall be notified of the shortfall of CPE hours through e-mail.
Level II (from 1st July to 31st Dec) 2025
2. Names of Member(s) who fail to make up for the shortfall on expiry of the extended Period as aforesaid in paragraph 1, shall be classified to non-compliance status on July 1 and the details of non-compliance status shall be displayed in CPE Portal of the ICAI under particular Member’s login till the Member is fully compliant. The member(s) shall make up for the shortfall for the calendar year by obtaining twice the shortfall of CPE hours for the relevant year in which the shortfall has occurred.
Level III (from 1st Jan to 30th June of Next year) 2026
3. If the member continues to be non-compliant for the period given at Level-II above, the CPE Committee may resort to the following measures on 1st January of the following calendar year:
In case of member(s) holding Certificate of Practice (COP) The Member is required to disclose the of status of non-compliance of CPE hrs requirement in Multipurpose Empanelment Form (MEF) of ICAI. List of non-compliant members shall also be provided to Professional Development Committee of the ICAI by CPE Committee of ICAI.
Member(s) shall be given 6 months’ time (i.e. from 1st January till 30th June) at this level to complete the shortfall in their CPE hour credit by completing twice the shortfall to get fully compliant status for the respective year.
Level IV: (from 1st July to 31st Dec of Next year) 2026
4. If the non-compliance by the Member continues even after the Level III stage as above, i.e., 1.5 years of extended period for compliance) then following consequences would follow.
If the Member is in Practice (i.e. Holding COP)- If the individual or the firm is otherwise eligible for the issuance of Peer Review Certificate, only Provisional Peer Review Certificate would be issued to such individual or the Firm in case if the individual or any partner of the Firm (as the case may be) has not complied with the requirement of these guidelines. Final Peer Review Certificate shall be issued to the individual or the firm only after compliance of CPE hrs requirement as per these guidelines by the individual or all the partners of the firm
(as the case may be).
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 matter to Disciplinary Directorate for action as deemed fit for the violation of these guidelines.
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