Navigating 2025: Key Compliance Updates for ICAEW-Regulated Firms
As we move further into 2025, ICAEW-regulated firms are facing a year of meaningful regulatory change. With updated audit regulations, a revised Code of Ethics, and heightened attention from the Quality Assurance Department (QAD), now is the time for firms to reflect, adapt, and reaffirm their commitment to ethical and professional excellence.
Here's a practical summary of what’s changed and what your firm should be doing about it.
1. Revised Audit Regulations – What You Need to Know
From 1 June 2025, new ICAEW Audit Regulations come into force. One of the most significant changes is the requirement to notify ICAEW when your firm is appointed to certain complex or high-risk audits. If your firm undertakes audits in sectors such as financial services, charities, or listed entities, this change is particularly relevant.
Another key point: sole practitioners must now have a nominated alternate in place. There's a transition period until 1 December 2025, but it’s best to start planning now if you haven’t already.
Action Point: Review your audit portfolio and risk classifications. If you’re a sole auditor, confirm your alternate arrangements and notify ICAEW accordingly.
2. New ICAEW Code of Ethics – Effective from July 2025
Ethical compliance is the cornerstone of any professional practice. ICAEW’s revised Code of Ethics, aligning more closely with international IESBA standards, will apply from 1 July 2025. While many of the core principles remain integrity, objectivity, professional competence, and confidentiality, there is greater clarity around independence and conflict management.
Action Point: Schedule ethics training or distribute updated declarations to your team. This isn’t just about ticking a box it’s about embedding ethical thinking into daily practice.
3. Sanctions Guidance Consultation – A Shift in Accountability
ICAEW is currently consulting on new Disciplinary Sanctions Guidance, a move that aims to bring greater consistency and transparency in how sanctions are determined. Although still under consultation, firms should take note: expectations around professional conduct and documentation are only rising.
Action Point: Use this as an opportunity to revisit your firm’s disciplinary procedures and breach logs. Proactive record-keeping is your best defence.
4. Audit Eligibility Changes – Check Your Status
A quieter but no less important update: changes introduced in late 2024 may impact your audit eligibility. These include new criteria around structure, supervision, and fit-and-proper requirements for Responsible Individuals (RIs).
Action Point: Re-confirm your firm’s eligibility status under the new criteria especially if you’ve had structural or personnel changes recently.
What This Means for Your Practice
We’re in a period of increasing transparency and accountability across the profession. QAD visits are becoming more data-driven and outcomes-focused. Firms that demonstrate readiness not just with paperwork but with a real culture of compliance are in the best position to thrive.
At Bigelaw Compliance Consultancy Services we are supporting firms across the UK with readiness reviews, compliance manuals, training workshops and policy development to meet these exact needs.
Need help getting ready for a QAD visit or implementing these updates? Let’s talk — we are here to support you with practical, tailored advice.
This article is for general guidance only and is not a substitute for tailored compliance advice. For bespoke support, contact us today.