Quality Management at Firm Level - ISQM 1

Objective

The objectives of this project are:

  • Enhancing the robustness of firm’s systems of quality control through various means, including:
    • Introducing a more proactive and tailored approach to managing quality.
    • Increasing firm leadership responsibilities and accountability, and improving firm governance.
    • More rigorous monitoring of systems of quality control and more effective remediation of deficiencies.
  • Modernizing the standard for an evolving and increasingly complex environment, including addressing the impact of technology, networks, and use of external service providers.
  • Improving the scalability of the standard.
PROJECT CONTACT

Natalie Klonaridis

Task Force
Project Stages

 

SUMMARY

MEETING HIGHLIGHTS - DECEMBER 2018

In finalizing the Exposure Draft (ED), the Board discussed the definition of deficiencies and bringing more emphasis to positive findings from the firm’s monitoring activities and how they may be used in the system of quality management. The Board also discussed the requirement for the firm to establish additional quality objectives beyond those required by the standard and further clarifying the identification and assessment of quality risks. In addition, the Board suggested further simplification of the requirement addressing communication with external parties, although in general agreed to retain an explicit reference to transparency reports in the requirement. The Board also discussed network requirements or network services, and adjusted the requirement to clearly reflect the expectations of the firm regarding the effect of network requirements or network services on the firm’s system of quality management.

The Board supported the Quality Control Task Force’s recommendations regarding matters to be addressed in the Explanatory Memorandum, including the proposed questions. After making the required amendments in response to the Board's comments received during the week, the Board approved the ED for public exposure. The ED will be issued in early February 2019 for comment by July 1, 2019. 

 
 

 

 

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