Ethical Statement

As a member of the International Federation of Accountants (IFAC) the Chartered Institute of Management Accountants is committed to IFAC's broad objective of developing and enhancing a co-ordinated worldwide accountancy profession with harmonised standards.

In 1991, CIMA's Council adopted IFAC's Guideline on Ethics for Professional Accountants and, as allowed by IFAC, authorised certain amendments and additions in order to reflect more clearly CIMA policies and requirements.

Under its Royal Charter, the Institute has powers to set standards of professional conduct and competence. Its Byelaws allow Council to make regulations for the professional standards to be observed by members, and the Ethical guidelines were so adopted in 1992.

It is not practical or possible to establish ethical requirements which apply to all situations and circumstances members may encounter. The objectives as well as the fundamental principles of the Guidelines are of a general nature and are not intended to be used to solve a member's ethical problems in a specific case. Members should consider the principles set out in the Guidelines as the basic principles which they should follow when performing their work.

In the event of a complaint being made against a member, failure to comply with the appropriate Guideline, or with advice given by the Institute, will be taken into consideration in deciding whether their action constitutes a prima facie case of professional misconduct requiring further investigation by the Institute. Disciplinary proceedings, however, are not restricted to matters set out in the Guidelines.

These guidelines are applicable to all members and registered students.

The full ethical guidelines are available to download in PDF format:

Ethical_guidelines_2004.pdf

Confidentiality

1. Members have an obligation to respect the confidentiality of information about an employer's or a client's affairs acquired in the course of their work. The duty of confidentiality continues even after the end of the relationship between the member and the employer or client.
2. Confidentiality should always be observed unless specific authority has been given to disclose information or there is a legal or professional duty to disclose.
3. Members have an obligation to ensure that staff under their control and persons from whom advice and assistance is obtained respect the principle of confidentiality.
4. Confidentiality is not only a matter of disclosure of information. It also requires that anyone acquiring information in the course of performing his or her work will not use that information for personal advantage or for the advantage of a third party.
5. Members have access to much confidential information about an employer's or client's affairs not otherwise disclosed to the public. They must be relied upon not to make unauthorised disclosures to other persons. This does not apply to disclosure of such information in order properly to discharge the individual's responsibility according to the profession's standards.
6. It is in the interest of the public and the profession that the profession's standards relating to confidentiality be defined and guidance given on the nature and extent of the duty of confidentiality and the circumstances in which disclosure of information acquired during the course of providing professional services shall be permitted or required.
7. It should be recognised, however, that confidentiality of information is part of statute or common law and that detailed ethical requirements will depend on the law of the country in which services are performed. The following are examples of the points which should be considered in determining the extent to which confidential information may be disclosed:
1. When disclosure is authorised. When authorisation to disclose is given by the employer or the client the interests of all the parties including those third parties whose interests might be affected should be considered.
2. When disclosure is required by law. Examples of when an individual may be required by law to disclose confidential information are:
1. to produce documents or to give evidence in the course of legal proceedings; and
2. to disclose to the appropriate public authorities infringements of the law which come to light.
3. When there is a professional duty or right to disclose:
1. to comply with technical standards and ethical requirements; such disclosure is not contrary to this section;
2. to protect the professional interests of a member in legal proceedings;
3. to comply with the quality (or peer) review of the Institute or other professional body;
4. to respond to an inquiry or investigation by the Institute or other regulatory body.