By Kelly D. Mullins, for Journal of Accountancy
The AICPA Professional Ethics Executive Committee (PEEC) on Friday released for public comment an exposure draft for changes to the AICPA Code of Professional Conduct related to Sec. 529 plans. If adopted as final, the changes will apply to members in public practice.
Comments on the revised interpretation are due by Oct. 30 and should be emailed to ethics-exposuredraft@aicpa.org.
Proposed revisions
The proposed revisions to the "Section 529 Plans" interpretation (ET §1.240.070) are in response to comments from members and other interested parties on the consultation paper PEEC released for its 2021–2023 strategy and work plan. Specifically, commenters had concerns about monitoring challenges and independence threats related to an account owner's direct financial interest in Sec. 529 plans.
After much research and consultation, PEEC determined that the account owner's interest in the underlying investments constitutes an indirect financial interest, rather than a direct one. In addition to that change, the revisions introduce specific safeguards for when these holdings become material. These changes aim to maintain practitioner independence and provide clearer guidelines for managing Sec. 529 plans.
The ED outlines the full background as well as details of feedback PEEC is requesting.
— Kelly D. Mullins is the communications manager for the AICPA Professional Ethics Division.