Why?
Clients and investors put their trust in the objectivity of a PwC audit opinion so PwC must be independent, and seen to be independent, from audit clients. It is also a legal requirement for all audit firms to be fully independent from audit clients. For this reason, staff need to also remain independent from audit clients, to maintain the firm’s objectivity, in line with Independence regulations and legislations, such as the International Code of Ethics for Professional Accountants.
How?
PwC Managers, Senior Managers, Directors and Partners are obliged to record the companies in which they or their immediate family members own financial interests, securities and other financial arrangements, to ensure that they do not conflict with PwC's independence. Any investments in crypto-tokens are also considered as financial interests, irrespective of the amount held within the investment. Only the company names and investment types are required; the amounts are not needed. The financial interests need to be recorded in Checkpoint, a restricted-access PwC database, in which everyone’s details remain confidential. New financial interests need to be recorded in Checkpoint within 14 days of the acquisition date and likewise, upon disposal, financial interests need to be removed from Checkpoint within 14 days of the disposal.
Who?
To maintain objectivity and independence, all PwC Managers, Senior Managers, Directors and Partners are required to report financial interests which:
- they own directly
- they control on behalf of others,
- or are owned by their immediate family members which includes:
- their spouse or other equivalent person,
- their dependent children and
- other relatives which are financially dependent on them.
What?
The issuing company or fund name needs to be recorded for any:
- Financial Interests: ∙ Equity ∙ Share ∙ Stock ∙ Bond ∙ Crypto-Token ∙ Other security ∙ Any derivative of these securities,
- Financial Arrangements: Savings related insurance policies and pension policies ∙ Similar financial products and services.
When?
Pre-clearance ahead of an acquisition
You can enter information about a relationship into Checkpoint before you acquire it.
Checkpoint tells you if the relationship is currently permitted. Pre-clearance helps avoid breaches of independence policy. It can also save you unnecessary transaction costs.
Ongoing reconciliation and maintenance
PwC Managers, Senior Managers, Directors and Partners must keep Checkpoint updated as circumstances change, (required to update Checkpoint within 14 days) as well as, submit a periodic official confirmation stating that their portfolio has been accurately and promptly maintained throughout the year.
