Section 3 Code of Ethics and Conduct

3.2 The fundamental principles

Fundamental principles

4.	Members are required to comply with the following fundamental principles.

Integrity

5.	Members should be straightforward and honest in all professional and business relationships.

Objectivity

6.	Members should not allow bias, conflicts of interest or undue influence of others to override professional or business judgements.

Professional competence and due care

Members have a continuing duty to maintain professional knowledge and skill at a level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques. Members should act diligently and in accordance with applicable technical and professional standards when providing professional services.

Confidentiality

Members should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority or unless there is a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of members or third parties.

Professional behaviour

9.	Members should comply with relevant laws and regulations and should avoid any action that discredits the profession.

10.

Each of these fundamental principles is discussed in more detail below.

Integrity

11.

The principle of integrity imposes an obligation on all members to be straightforward and honest in professional and business relationships. Integrity also implies fair dealing and truthfulness.

12.

Members should not be associated with reports, returns, communications or other information where they believe that the information:

(a)

contains materially false or misleading statements;

(b)

contains statements or information furnished recklessly; or

(c)

omits or obscures information required to be included where such omission or obscurity would be misleading.

Objectivity

13.

The principle of objectivity imposes an obligation on all members not to compromise their professional or business judgement because of bias, conflict of interest or the undue influence of others.

14.

Members may be exposed to situations that may impair their objectivity. It is impracticable to define and prescribe all such situations. Relationships that bias or unduly influence professional judgement of members should be avoided.

Professional competence and due care

15.

The principle of professional competence and due care imposes the following obligations on members:

(a)

to maintain professional knowledge and skill at the level required to ensure that clients or employers receive competent professional service; and

(b)

to act diligently in accordance with applicable technical and professional standards when providing professional services.

16.

Competent professional service requires the exercise of sound judgement in applying professional knowledge and skill in the performance of such service. Professional competence may be divided into two separate phases:

(a)

attainment of professional competence; and

(b)

maintenance of professional competence.

17.

The maintenance of professional competence requires a continuing awareness and an understanding of relevant technical, professional and business developments. Continuing professional development develops and maintains the capabilities that enable members to perform competently within the professional environment.

18.

Diligence encompasses the responsibility to act in accordance with the requirements of an assignment carefully, thoroughly and on a timely basis.

19.

Members should take steps to ensure that those working under their authority in a professional capacity have appropriate training and supervision.

20.

Where appropriate, members should make clients, employers or other users of the professional services aware of limitations inherent in the services to avoid the misinterpretation of an expression of opinion as an assertion of fact.

Confidentiality

21.

The principle of confidentiality imposes an obligation on members to refrain from:

(a)

disclosing outside the firm or employing organisation confidential information acquired as a result of professional and business relationships without proper and specific authority or unless there is a legal or professional right or duty to disclose; and

(b)

using confidential information acquired as a result of professional and business relationships to their personal advantage or the advantage of third parties.

22.

Members should maintain confidentiality even in a social environment. Members should be alert to the possibility of inadvertent disclosure, particularly in circumstances involving long association with a business associate or a close or immediate family member.

23.

Members should also maintain confidentiality of information disclosed by a prospective client or employer.

24.

Members should also consider the need to maintain confidentiality of information within the firm or employing organisation.

25.

Members should take all reasonable steps to ensure that staff under the member's control and persons from whom advice and assistance is obtained respect the member's duty of confidentiality.

26.

The need to comply with the principle of confidentiality continues even after the end of the relationship between a member and a client or employer. When members change employment or acquire new clients, members are entitled to use prior experience. Members should not, however, use or disclose any confidential information either acquired or received as a result of a professional or business relationship.

27.

The following are circumstances where members are or may be required to disclose confidential information or when such a disclosure may be appropriate:

(a)

disclosure is permitted by law and is authorised by the client or the employer;

(b)

disclosure is required by law, for example:

(i)

production of documents or other provision of evidence in the course of legal proceedings; or

(ii)

disclosure to the appropriate public authorities of infringements of the law that come to light; and

(c)

there is a professional duty or right to disclose, when not prohibited by law:

(i)

to comply with the quality reviews of ACCA or other professional body;

(ii)

to respond to an inquiry or investigation by ACCA or other regulatory body;

(iii)

to protect the professional interests of a member in legal proceedings; or

(iv)

to comply with technical standards and ethics requirements.

28.

In deciding whether to disclose confidential information, members should consider:

(a)

whether the interests of any parties, including third parties whose interests may be affected, could be harmed if the client or employer consents to the disclosure of information by members;

(b)

whether all the relevant information is known and substantiated, to the extent it is practicable. When the situation involves unsubstantiated facts, incomplete information or unsubstantiated conclusions, professional judgement should be used in determining the type of disclosure to be made, if any; and

(c)

the type of communication that is expected and to whom it is addressed. In particular, members should be satisfied that the parties to whom the communication is addressed are appropriate recipients.

Professional behaviour

29.

The principle of professional behaviour imposes an obligation on members to comply with relevant laws and regulations and avoid any action that may bring discredit to the profession. This includes actions which a reasonable and informed third party, having knowledge of all relevant information, would conclude negatively affects the good reputation of the profession.

30.

Members should behave with courtesy and consideration towards all with whom they come into contact in a professional capacity.

31.

In marketing and promoting themselves and their work, members should not bring the profession in disrepute. Members should be honest and truthful and not:

(a)

make exaggerated claims for the services they are able to offer, the qualifications they possess, or experience they have gained; or

(b)

make disparaging references or unsubstantiated comparisons to the work of others.