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About the Public Trust Committee Terms of Reference About PTC The Public Trust Committee (PTC) was established in 2008 by the Canadian Institute of Chartered Accountants (CICA) to serve the public interest by providing leadership and oversight in establishing the policies, strategies and processes by which the CICA Board of Directors, Councils/Boards of the provincial/territorial Institutes and Bermuda (PICAs) and their supporting committees maintain the integrity of the profession and the confidence and trust of the public. The PTC is responsible for oversight of the ethical standards and self-regulatory processes of the profession. The ethical standards are based on five fundamental principles that govern the behaviour of all Chartered Accountants - professional behaviour, integrity and due care, professional competence, confidentiality and objectivity. The detailed ethical standards are embodied in the profession’s Rules of Professional Conduct (RPC) and are monitored and enforced through the profession’s self-regulatory activities. The self-regulatory activities that are the focus of the work of the PTC include the development of harmonized RPC, practice inspection programs, mandatory minimum professional liability insurance, mandatory minimum continuing professional development requirements and discipline processes. The purpose of the PTC is to improve protection of the public through the promotion of further national harmonization of the profession’s policies and practices in the area of self-regulation. The structure of the PTC is intended to assist the profession in identifying and addressing issues through a consultative and timely process. It reports to the CICA Board through the profession’s Council of Senior Executives (CSE). The PTC’s Terms of Reference state that it supports improved harmonization of the profession's policies and processes to protect the public by: - recommending policies and strategies to uphold the public’s confidence and trust in the profession;
- monitoring international developments in the area of ethics;
- reviewing, on behalf of the profession, and responding to any proposed changes to independence standards;
- monitoring the development and renewal of the profession’s harmonized rules of professional conduct;
- monitoring the development and renewal of the profession’s disciplinary and practice inspection processes;
- identifying matters which have or may have impact on the public’s trust and confidence in the profession in order to research and address them;
- communicating and promoting any recommendations relating to improving the public’s confidence in the profession to the CSE, and ultimately to those charged with governance of the profession; and
- approving the terms of reference of committees or task forces created under its auspices.
The PTC is empowered to - initiate, review and commission research, and consult with appropriate parties within and outside the profession;
- authorize committees, task forces, etc. that it establishes to do the same; and
- adopt, in both English and French, in keeping with the Protocol and pursuant to Section 5 of the Protocol, harmonized independence standards for Chartered Accountants and ensure they are kept up to date.
The PTC comprises 8 members, consisting of a Chair appointed by the CSE, who is normally a member of the CSE, two additional members of the CSE, and five members at large including at least two public representatives. There must be at least one member from each of the four regions. The PTC makes decisions on the basis of its consultations with the PICAs, the CICA Board of Directors, the general membership and other stakeholders as necessary. The PTC is funded by the PICAs and CICA based on agreed upon funding models as appropriate to the activities it undertakes. The current members of the PTC are: Chair:
Gary Hannaford, FCA
CEO - Institute of Chartered Accountants of Manitoba
(Winnipeg) CSE Representatives: Jane Halford, CA
CEO – Institute of Chartered Accountants of Alberta
(Edmonton) Daniel McMahon, FCA
CEO – Ordre des comptables agréés du Québec
(Montreal) Members at large: Terry Jonat, FCA
Retired Partner, Ernst & Young LLP
(Vancouver) Joanna Maund, FCA
Partner, Deloitte
(Toronto) Pierre Lussier, FCA
Retired Partner, BDO Canada LLP
(Montreal) Don Bishop, QC (Public Representative)
Partner, Bishop & McKenzie LLP
(Edmonton) Frederick E. Hyndman, FCIP (Public Representative)
CEO, Hyndman and Company Ltd.
(Charlottetown) Staff Contact:
Shirley Sommer, CA
Institute of Chartered Accountants of Manitoba
(Winnipeg) Back to top Terms of Reference Background Our commitment to protect the public interest is the cornerstone of the CA profession. It defines who we are and enables the public to place its trust in us. Continuing to maintain the public’s confidence and trust is essential to the future reputation of the profession. The public’s interest is protected through the profession’s rules of professional conduct and self-regulatory activities. The provincial institutes/ordre (PICAs/Ordre), which are responsible for this role, have agreed to carry out their responsibilities through policies, strategies and processes that are harmonized to the greatest extent possible. In addition, it is in the best interest of the public and the profession that the rules of professional conduct are harmonized across all jurisdictions, subject only to infrequent differences reflecting local laws and circumstances. Role Acting on behalf of the management of the profession, the role of this committee is to provide leadership and oversight in establishing policies, strategies and processes by which the CICA Board of Directors, the councils of the PICAs/Ordre and the relevant committees can maintain the integrity of the profession and the confidence and trust of the public. Responsibilities The Committee is responsible for: - recommending policies and strategies to uphold the public’s confidence and trust in the profession;
- monitoring international developments with respect to the IFAC Code of Ethics and developing responses to changes, on behalf of the Canadian CA profession, regarding any future changes to the Code of Ethics being proposed by the International Ethics Standards Board for Accountants (IESBA)
- reviewing, on behalf of the profession, and responding to any proposed changes to the independence standards as recommended from time to time by the Independence Task Force
- monitoring the development and renewal of the profession’s harmonized code of professional conduct and standards of self-regulation, through an ongoing Rules Harmonization Committee and such other committees, task forces, etc. as may be required;
- monitoring the development and renewal of the profession’s disciplinary and practice inspection processes through such committees and/or task forces as may be required;
- identifying matters which have or may have impact on the public’s trust and confidence in the profession and providing for the establishment and monitoring of the appropriate committees, task forces, etc. to research and address them;
- communicating and promoting any recommendations relating to improving the public’s confidence in the profession to the Council of Senior Executives (CSE) and ultimately to the CICA Board of Directors and the councils of the PICAs/Ordre, as appropriate; and
- approve the terms of reference of the Rules Harmonization Committee and any other committees or task forces created under the auspices of the Public Trust Committee.
Authority The Committee is empowered - to initiate review and commission research, and consult with appropriate parties within and outside the profession;
- to authorize committees, task forces, etc. that it establishes to do the same; and
- to adopt, in both English and French, in keeping with the Protocol and pursuant to Section 5 of the Protocol, harmonized independence standards for chartered accountants and ensure they are kept up to date.
Accountability The Committee is accountable to the Council of Senior Executives. Composition and Term The Committee will consist of up to nine members, as follows: - a Committee chair appointed by the CSE who is normally a member of the CSE;
- two or three additional members of the CSE;
- five additional members, three of whom shall be members of the CA profession at large and two of whom shall be public representatives.
There will be at least one member from each of the regions. The Committee members will serve for three-year term, once renewable, and staggered to provide continuity. The Committee is a Standing Committee of the Council of Senior Executives and is subject to a five-year mandatory review to be performed by the Council of Senior Executives Assistance/Advice/Operations The Secretariat will be provided by an individual who has knowledge and experience in the profession’s self-regulatory processes. This individual will be responsible for assisting the chair in developing agenda materials for Committee meetings, circulating materials in advance of such meetings, preparing initial drafts of reports on behalf of the Committee, and preparing minutes of Committee meetings. More importantly the individual will take a lead role in environmental monitoring on behalf of the Committee and bringing forward relevant information to the Committee’s attention. The Committee’s secretariat and the secretariat for the Rules Harmonization Committee will be the same individual. The secretariats for other Public Trust related committees, task forces, etc. will be provided as the Committee deems appropriate in the circumstances. Liaison with the CICA will be provided by the Chair of the Public Trust Committee. Consultation and Communication The Committee will seek advice and guidance from the PICAs/Ordre (including any liaison designated by a PICA/Ordre for that purpose), the CICA Board of Directors and the general membership as required. Decision Making A quorum consists of five members of the Committee including at least one public representative. Each Committee member is entitled to one vote and any decision shall be by majority of those present. Reporting The Committee shall report as necessary to the Council of Senior Executives but at least annually. Meetings The Committee will meet as frequently as required, but not less than three times per year. Bilingualism The Committee is designated as English/French with accommodation. Funding Funding for reasonable and necessary expenses for the activities of the Public Trust Committee is shared by the PICAs/Ordre and the CICA on a prorata basis. Funding of the Rules Harmonization Committee is shared by the PICAs/Ordre. Funding of the other Working Groups and Task Forces will be determined based on the mandate of such groups and as agreed to by the CSE. Effective February 2009 Back to top |
