Practice information Handbook - Global body for professional

Practice informationHandbook

2

contents

Introduction 4

1Thepractisingcertificate 6

Whorequiresapractisingcertificate? 6

Whatispublicpractice? 6

Whatisnotconsideredtobepublicpractice? 7

Howtoobtainapractisingcertificate 7

Ongoingconditionsforholdingapractisingcertificate 8

Otherusefulinformation 9

2Theauditqualificationandfirm’sauditingcertificate 11

Theindividual’spractisingcertificateandauditqualification 11

Howtoobtainthepractisingcertificateandauditqualification 11

Thefirm’sauditingcertificate 13

Ongoingconditionsforholdingapractisingcertificateand

auditqualificationandfirm’sauditingcertificate 14


3RegisteringforinvestmentbusinessintheUK 17

Introduction 17

Eligibilitycriteria 17

Incidentalmanner 18

Pecuniaryreward 18

Whatactivitiescanfirmsundertake? 19

Conductofbusinessregulations 19

Overseasbranchesorofficesandjurisdictions 21

Appendix1:Exemptregulatedactivities 22

Appendix2:Regulation4(2)oftheDPBRs 23



3practice information HanDBooK

4Applyingforafirm’sinvestmentbusinesscertificate(Ireland) 25

Introduction 25

Doyouneedaninvestmentbusinesscertificate(Ireland)? 25

InvestmentbusinessservicescoveredbytheIIA/investmentadvice 26

Conditionsfortheissueofaninvestmentbusinesscertificate(Ireland) 26

Guidetotheprovisionofinvestmentbusinessservicesandinvestment

adviceandcompliancewiththeACCAIrishInvestmentBusinessRegulations 28

ApplicationtoNorthernIrelandandtheUK 29

Fees 29

5Applyingforaninsolvencylicence 30

WhorequiresanACCAinsolvencylicence? 30

GlobalPractisingRegulations 30

Eligibilityforaninsolvencylicence 30

Eligibilityofnon-membersforaninsolvencylicence 31

Relevantinsolvencyexperience 31

Ongoingconditionsforholdinganinsolvencylicence 32


Appendix1:Applyingforaninsolvencylicence 35

CONTENTs

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ThePractice Information Handbookisintendedtoprovideguidancetomembers(basedonlegislationandtheregulationsandrulesofACCA),andparticularlytothosemembersthatarenewtopracticeorcontemplatingsettingupinpracticeinthefuture.Itactsasasingle,helpfulpointofreference.

introduction

Thishandbookhasnoregulatorystatus.Itisissuedforguidancepurposesonly,andintheeventofanyconflictbetweenthecontentofthishandbookandthecontentoftheACCA Rulebook,thelattershallatalltimestakeprecedence.Therefore,thishandbookshouldnotberegardedbyamemberasasubstituteforfamiliarisinghimselforherselfwiththeappropriateregulationsor,wherenecessary,obtainingspecificadviceconcerningaspecificsituation.

someoftheregulationsreferredtointhispublicationarespecifictotheUK,Ireland,anotherdesignatedterritory,Cyprus,ZimbabweorAustralia.However,unlessotherwisestated,thecontenthasbeendesignedtoapplytopractitionersglobally.Nevertheless,practitionersshouldalwayshaveregardtolocallegislationwhich,forreasonsofpracticality,maynotbediscussedinthishandbook.

RelevantapplicationformscanbefoundonACCA’swebsiteat www.accaglobal.com/members/professional_standardsorrequestedfromAuthorisationattheaddressbelow.

tHe acca rULeBooKInformationinthishandbookreferstoACCA’sRegulationsandCodeofEthicsandConductwhichcanbefoundintheACCA Rulebook,whichisautomaticallycirculatedtoACCApractisingcertificateandinsolvencylicenceholdersonCD-ROM.TheACCA RulebookcanbeaccessedviatheACCAwebsiteatwww.accaglobal.com/members/professional_standards.Alternatively,toobtainacopy,pleasecontactACCA Connect:

Tel:+44(0)1415822000Fax:+44(0)1415822222Email:[email protected]

appLYinG for YoUr firSt practiSinG certificateIfyouwishtoapplyforyourfirstpractisingcertificate(orpractisingcertificateandauditqualification),youshouldsubmityourPractisingCertificateTrainingRecord(PCTR)to:

AuthorisationACCA2CentralQuay89HydeparkstreetGlasgowG38BWUnitedKingdom.

Youreligibilityforapractisingcertificate(andauditqualificationwhereapplicable)willbeassessed,andyouwillbenotifiedoftheoutcome.Youmaywishtoforwardacompletedpractisingcertificateapplicationformatthesametime,orwaituntilyourPCTRhasbeenapprovedbeforesubmittingyourapplication.Morespecificdetailsregardingthetrainingrecordsarecontainedinsection1.

appLYinG for a firm’S aUDitinG certificateAfirmwhichholds,orintendstohold,auditappointmentsintheUKorIrelandwillneedtoobtainauditregistrationfromaRecognisedsupervisoryBodyintheUKoraRecognisedAccountancyBodyinIreland.ACCAisabletoregisterfirmsinthisrespect,throughthemechanismofanauditingcertificate.AnapplicationformcanbedownloadedfromtheACCAwebsite,orobtainedfromAuthorisationatACCA.DetailsconcerningapplicationsforUKorIrishfirms’auditingcertificatesmaybefoundinsection2.

5practice information HanDBooK INTRODUCTION

inVeStment BUSineSSDetailsconcerningregisteringforinvestmentbusinessintheUKandapplyingforaninvestmentbusinesscertificate(Ireland)maybefoundinsections3and4respectively.

appLYinG for an inSoLVencY LicenceDetailsconcerningapplyingforaninsolvencylicencemaybefoundinsection5.

otHer informationMembersarealsoadvisedtoreadthefollowingfactsheets,whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards

•Professionalindemnityinsurancerequirements•Continuityofpracticerequirements•CodeofEthicsandConduct•Controlanddescriptionrequirements•Obtainingprofessionalwork•Monitoringrequirementsandglobalqualityassurance•Disciplinaryprocedures•Notificationrequirements•Continuingprofessionaldevelopment(CPD)forpractisingmembers

•Internalcomplaintshandlingprocedures•Professionalconductinrelationtotax• Transferinformation• Thelegalownershipof,andrightsofaccessto,books,files,workingpapersandotherdocuments

• ACCA’sConsumerCreditGroupLicence• DoIneedapracticingcertificate?

AnyfurtherinformationrequiredshouldbesoughtfromtheappropriatedepartmentofACCA.Foradviceregardingeligibilityforapractisingcertificate,insolvencylicence,auditingcertificate,exemptregulatedactivitiesregistrationortheinvestmentbusinesscertificate(Ireland)orcompletingtheapplicationforms,pleasecontactAuthorisationon+44(0)1415344175;foradviceonlegislation,practiceortechnicalissues,pleasecontactTechnicalAdvisoryon:

+44(0)2070595920,or+353(0)14988907(forIrelandonly).

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TheCharteredCertifiedAccountants’GlobalPractisingRegulations2003(GPRs)setouttheeligibilitycriteriaforobtainingapractisingcertificateanddetailthecontinuingobligationsplacedonpractisingcertificateholders.

1 the practising certificate

WHo reQUireS a practiSinG certificate?AnyACCAmemberperformingworkunderACCA’sdefinitionofpublicpracticeorwhoisapartner/directorofafirmwhichundertakespublicpracticeisrequiredtoholdanACCApractisingcertificate.ACCAissues:

•apractisingcertificate,and•apractisingcertificateandauditqualification.

Thissectionexplainswhenapractisingcertificateisrequired,detailsoftheeligibilityrequirementsandtheongoingconditionsforholdingthecertificate.Thedifferencesbetweenapractisingcertificateandapractisingcertificateandauditqualificationareexplainedinsection2.

Practisingcertificatesareavailabletomemberswhomeettheeligibilityrequirements,wherevertheyarebased.ACCAmayissuepractisingcertificatesandauditqualificationsintheUK(includingJersey,GuernseyandDependenciesandtheIsleofMan),Ireland,CyprusandZimbabwe.IntheseareasACCAhaseitherspecificlegislativeresponsibilitytoregulateitsmembersprovidingauditservicesor(inthecaseofCyprus)hasanagreementwiththerecognisednationalbodyorregulatoryauthority.Inotherareas,membersholdingpractisingcertificatesmaycarryoutauditorotherreservedworkwhereauthorisedtodosobylocallawandwheretheyareabletodemonstratesuchauthorisation.

AUKmemberwhoengagesexclusivelyininsolvencyworkmayholdanACCAinsolvencylicenceona‘stand-alone’basisandneednotalsoholdapractisingcertificate.However,amemberwhoholdsaninsolvencylicenceissuedbyanotherRecognisedProfessionalBodyorengagesinactivitiesotherthaninsolvencyandfallingwithinACCA’sdefinitionofpublicpractice(outlinedbelow)willalsoneedtoholdanACCApractisingcertificate.Furtherinformationonobtaininganinsolvencylicencecanbefoundinsection5.

WHat iS pUBLic practice?ACCA’sdefinitionofpublicpracticeisquitewidelydrawn.Publicpracticeisdefinedas:

•acceptinganappointmentasanauditor;and/or

•signingorproducinganyaccountsorreportorcertificateortaxreturnconcerninganyperson’sfinancialaffairs,whetheranindividualsoletrader,anunincorporatedbodyorafirm,incircumstanceswhererelianceislikelytobeplacedonsuchaccountsorreportorcertificateortaxreturnbyanyotherperson(the‘thirdparty’),ordoinganyotherthingwhichmayleadthethirdpartytobelievethattheaccountsorreportorcertificateortaxreturnconcerningthefinancialaffairsofsuchapersonhavebeenprepared,approvedorreviewedbythepractitioner;and/or

•holdingoneselforitselfout,orallowingoneselforitselftobeheldout,asbeingavailabletoundertaketheactivitiesreferredtoabove(andallowingoneselftobeknownasa,orafirmof,‘CharteredCertifiedAccountant(s)’,‘CertifiedAccountant(s)’,‘CharteredAccountant(s)’,‘Accountant(s)’or‘Auditor(s)’oranysimilardescriptionordesignationstandingforanysuchdescriptioninthecontextofthepractitioner’sbusinessshallberegardedasanexampleofsuchaholdingout);and/or

•holdingoneselfout,orallowingoneselftobeheldout,asasoleproprietor,partnerordirectorofafirm,ordesignatedmemberormemberofalimitedliabilitypartnership,wherepublicpracticeiscarriedon.

Althoughmembersmaynotconsiderthemselvestobeinpublicpractice,itiseasytostrayintoareaswherethenatureoftheworkisunclear.someoftheseareasarediscussedinthenextsection.

7practice information HanDBooK THEPRACTIsINGCERTIFICATE

WHat iS not conSiDereD to Be pUBLic practice?Basicbookkeepingservices,forexamplethepreparationofaccountingrecordstotrialbalancestageandtherecordingofVAT,andpayrolltransactions,donotconstitutepublicpracticework.Amemberwhoisself-employedandonlycarryingouttasksoutsidethedefinitionofpublicpracticeneednotholdapractisingcertificate,providinghisorherfirmisnotdescribedasafirmofCharteredCertifiedAccountants(orsimilar)andhisorherbusinessstationerycannotbereasonablyunderstoodtobethatofapractisingCharteredCertifiedAccountant.(Thisis‘holdingout’asdetailedabove.)

Amemberworkingonthefringesofthedefinitionofpublicpracticewillneedtocarefullyassesswhetherheorsheshouldholdacertificateasa‘protective’measure.Thiswouldenablehimorhertoundertakeworkwithinthedefinitionofpublicpracticewhichmaybeincidentaltohisorherregularactivities.

Workundertakenonaself-employedbasisintheareasofbookkeepingandmanagementconsultancyservices,wheretheworkwillbeusedsolelybytheclient,wouldberegardedasbeingoutsidethedefinitionofpublicpractice.However,whereaccounts,reports,certificatesortaxreturnscouldberelieduponbyathirdparty(egacashflowstatementprovidedtoabankinsupportofaloanapplication),apractisingcertificateisrequired.Mostformsofcommunicationwiththetaxauthorities(eventhecompletionofataxreturnwhichwillbesignedbytheclient)orbanks/otherfinancialinstitutionsonclients’financialaffairswouldberegardedascomingwithinthedefinitionofpublicpractice.ACCAhasproducedafactsheetentitled‘DoIneedapractisingcertificate?’whichoutlinesthecommonareaswhereapractisingcertificateisrequired.ThiscanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards.AmemberwhoisuncertainastohisorherpositionshouldwritewithfulldetailsoftheproposedareasofworktoAuthorisationatACCAforfurtherguidance.

Honorary public practice work exemptionACCArecognisesthatsomemembersmaywanttohelpoutfriends,familyorlocalcharitiesbypreparingaccountsetc.Therefore,providingthefollowingconditionsaremet,this‘honorary’workshallnotconstitutepublicpractice:

•theaccountsareofanentitywhichdoesnotrequiretheappointmentofanauditor;and

•nofeeispayableorothermaterialbenefitreceivableinrespectoftheworkperformed;and

•thegrossincomeoftheentityfortheyearpriortotheyearinquestiondoesnotexceed£100,000;and

•theaggregateofsuchgrossincomewithsuchgrossincomeofanyotherentityinrespectofwhichthememberhasrelieduponthisregulationinthecalendaryearinquestiondoesnotexceed£200,000;and

•anythirdpartiesaremadeawarethattheactivityhasbeencarriedoutbyanHonoraryReportingAccountant;and

•thememberdoesnotholdhimselfout,orallowhimselftobeheldout,asasoleproprietor,partner,director,memberordesignatedmemberofafirmwherepublicpracticeiscarriedon.

Councilhasdefined‘materialbenefit’asamountingtoanon-monetarygiftworthmorethan£50invalue.Thereimbursementofexpensesshouldrelateonlytoitemsstrictlynecessarytothecompletionofatask.

Thehonorarypublicpracticeexemptionexiststoallowmemberstousetheirskillstomakeacontributiontotheirlocalcommunitiesortoassistfamily,friendsandlocalcharitiesasafavour.Itshouldnotbeviewedasanentryrouteintopublicpractice,anditisnotacceptabletoproducebusinessstationeryinconnectionwithsuchworkwhichpurportstobethatofapractisingfirm.

Thefactthatanassignmenthasbeentakenoninanhonorarycapacitydoesnotexoneratethememberfromapotentialclaimforprofessionalnegligence.Membersundertakingworkunderthisprovisionare,therefore,advisedtocarefullyassesswhetherthenatureoftheworktheyintendtocarryoutwarrantstheholdingofprofessionalindemnityinsurancecoverorundertakingappropriatecontinuingprofessionaldevelopment.

HoW to oBtain a practiSinG certificateThepractisingcertificateisavailabletomembersinallcountries.Thepractisingcertificateconferstherighttoundertakegeneralpracticeworkbutnotworkreservedforregisteredauditors(seeabove).

Toobtainagloballyportablepractisingcertificate,membersmustmeetACCA’spracticaltrainingrequirementsandcompleteaPractisingCertificateTrainingRecord(PCTR).However,amemberwhoholdsalicencetopractiseissuedbyarecognisednationalbodyorregulatoryauthoritymayapplyforanACCApractisingcertificatewhichisvalidonlyinthecountrywherethelocallicenceallowsthemembertopractise.ThePCTRandpractisingcertificateapplicationformcanbedownloadedfromACCA’swebsiteat www.accaglobal.com/members/professional_standards

Tobeeligibletoobtainagloballyportablepractisingcertificate,amembermusthavebeenamemberofACCAcontinuouslyforaperiodofnotlessthantwoyearsandmustcomplywitheither1or2below:

1havecompletedthreeyears’practicaltrainingwithanACCAApprovedEmployer–practisingcertificatedevelopment,underthesupervisionofasuitablyexperiencedmemberoranotherpersonhaving,intheopinionofCouncil,adequatequalification(workingaseitheranemployeeorsub-contractor),ofwhichatleasttwoyearsmusthavebeencompletedafteradmissiontomembership.Thepost-admissiontomembershiptrainingmustcoverprofessionalconduct,technical(accounting,businessadvice,developmentandmeasurement,taxation,businessassuranceandinternalreview)andmanagement.Theremainingperiodmaybecompletedbeforeorafter,orpartlybeforeandpartlyafter,admissiontomembership.(MembersshouldrecordtheirexperienceinaPCTR.);

OR

2 havepreviouslyheldanequivalentcertificateissuedbyACCA.

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Asstatedabove,membersholdingalicencetopractiseissuedbyarecognisednationalbodyorregulatoryauthoritymayapplyforanACCApractisingcertificatewhichisvalidonlyinthecountrywherethelocallicenceallowsthemembertopractise.Toobtainapractisingcertificate,acopyofthelocallicenceshouldbesubmittedwiththecompletedpractisingcertificateapplicationform.

Detailsofhowtoobtainandretainthepractisingcertificateandauditqualification(anddetailsoffirms’auditingcertificates)maybefoundinsection2.

onGoinG conDitionS for HoLDinG a practiSinG certificatefit and proper statusACCAwillonlyissuepractisingcertificatestoapplicantswhoare‘fitandproper’persons.

Indeterminingwhetherapersonisfitandproper,theAdmissionsandLicensingCommitteewilllookatanymatterwhichrelatestotheperson,includingwhetherthepersonisorhasbeen(forcountriesoutsidetheUK,referencestothelegislationshallbedeemedtorefertothecorrespondinglegislationofthecountryinquestion):

•convictedofacriminaloffence

•atanytimebankrupt,signedatrustdeedforcreditorsorentered intoadeedofarrangement,schemeorcompositioninrespectofhis/herfinancialaffairs(oranysimilaroranalogousevent)

•thesubjectofabankruptcyrestrictionorderorbankruptcyrestrictionundertakingundertheInsolvencyAct1986

•removedfromtheofficeofliquidator,trustee,administrativereceiver,administratororsupervisor

•thesubjectofadisqualificationorderordisqualificationundertakingmadeundertheCompanyDirectorsDisqualificationAct1986

•excludedfromorrefusedmembershipofaprofessionalbodyondisciplinarygrounds

•foundtohavefailedtoensurethattheexperienceandcompetenceofhis/heremployeesandpracticeassociatesareadequate,havingregardtothenatureoftheworkinvolved

•apatientundertheMentalHealthAct1983

•thesubjectofadisciplinaryordermadebyACCAoranotherprofessionalbody

•thesubjectofaninvestigation,whethercriminal,disciplinaryorotherwise,inrespectofhis/herconduct

•inbreachofanapplicableregulationofACCA

•foundtohavegivenACCAfalse,inaccurateormisleadinginformationorfailedtoco-operatewithACCA.

TheAdmissionsandLicensingCommitteemayalsotakeintoaccountanymatterrelatingtoanypersonwhoisorwillbeemployedbytheapplicantorwhoisorwillbeinpartnership/directorshipwiththeapplicantinconnectionwithpublicpractice,insolvencywork,exemptregulatedactivitiesorinvestmentbusiness.

professional indemnity insuranceHoldersofpractisingcertificatesmustholdprofessionalindemnityinsurance(PII).Inthecaseofapersonwhoemploysfulland/orpart-timestaff,fidelityguaranteeinsurance(FGI)mustbeheldinrespectofallpartners,directorsandemployees.MembersceasingtopractisemustmakearrangementsforthecontinuedexistenceofPIIand,ifapplicable,FGIforaperiodofsixyears.

Responsibilityforobtainingadequatecoverlieswithanindividualmemberandmaybeeffectedwithanyreputableinsurancecompanyorunderwriter.FurtherinformationonPII,includingdetailsofthelimitofindemnityandalistofbrokers,canbefoundinaseparatefactsheetentitled‘Professionalindemnityinsurancerequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

continuity of practiceAholderofanypractisingcertificatewhoiscarryingonpublicpracticemustenterintoandkeepinforceforalltheperiodduringwhichapractisingcertificateisheldawrittenagreementwithanotherindividualorfirm(orapluralityofthem)–the‘nominee’.Forpartners/directors,thisagreementmaybemadewithanotherequivalentlevelpractisingcertificateholderwithinthepractice.Thisprovidesforthenomineetoberesponsiblefortheindividual’spracticeintheeventofdeathorincapacity.

Continuitycanbeassuredbyenteringintoacontinuityagreementor,inthecaseofincorporatedfirms,bymakingprovisionforitinthearticlesofassociation.Thenomineemustbebasedinthesamecountryastheindividualandbeauthorisedtocarryonalloftheindividual’swork(iehavethesametypesofauthorisation).Wheretheindividualpractisesinmorethanonecountry,separatenomineesmustbeappointedaccordingly.

Thenameandaddressoftheindividualorfirmresponsibleforcontinuitymustbegivenonthepractisingcertificateapplicationform.ItismandatorythatawrittenagreementbemadeandthismaybeinspectedbyACCA.Furtherinformationoncontinuityofpracticecanbefoundinaseparatefactsheetentitled‘Continuityofpracticerequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards orrequestedfromAuthorisation.

notificationInformationonnotifiableeventsandthetimerequirementsfornotification(somechangesmustbenotified28daysinadvance)canbefoundinaseparatefactsheetentitled‘Notificationrequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

continuing professional developmentAllmembersarerequiredtoundertakecontinuingprofessionaldevelopment(CPD),inaccordancewithMembershipRegulation4(4).TherearefouralternativeroutestoobtainingsatisfactoryCPD.TheseareexplainedonACCA’swebsiteatwww.accaglobal.com/members/cpd

Mostmembersinpracticewillfollowtheunitroute,andarerequiredtoundertakeaminimumof40unitsofrelevantCPDeachyear,ofwhich21unitsshouldbeverifiableCPD.

9practice information HanDBooK THEPRACTIsINGCERTIFICATE

Practisingmembersshouldbeabletodemonstratethattheyhavemaintainedcompetenceinthespecialisedareasoftheirpractice.

FurtherinformationonCPDcanbefoundinaseparatefactsheetentitled‘Continuingprofessionaldevelopment(CPD)forpractisingmembers’whichcanbedownloadedfromACCA’swebsiteat www.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

conductHoldersofACCApractisingcertificatesmustcomplywithACCA’sCodeofEthicsandConduct.Aseparatefactsheetentitled‘CodeofEthicsandConduct’canbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

monitoring, quality assurance and compliancePractisingcertificateholdersmustco-operatewithACCAinitsmonitoringandenforcementofcompliancewiththebye-lawsandregulations.ACCAwillmonitorandenforceitsbye-lawsandregulationsbyanalysingpractitioners’annualreturnsandcarryingoutmonitoringvisits.

Furtherinformationonmonitoringcanbefoundinaseparatefactsheetentitled‘Monitoringrequirementsandglobalqualityassurance’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

otHer USefUL informationrenewal of practising certificatesAllpractisingcertificatesareannuallyrenewable.PractisingcertificatesfortheUK,Ireland,Jersey,GuernseyandDependenciesandtheIsleofManarevalidonlyuntil31Decemberintheyearofissue.Renewalnotificationsforthesepractisingcertificatesareusuallysentinseptemberofeachyear.Practisingcertificatesforallothercountriesarevaliduntil30Junefollowingthedateofissue.RenewalnotificationsforthesecertificatesareusuallysentinMarchofeachyear.

Spare-time certificatesAmemberisregardedasbeinginspare-timepracticeifheorsheholdsapractisingcertificatewhileemployedinindustry,commerce,publicserviceoremployed(asopposedtobeingaprincipal)inapractice.Theexperiencerequirementsforobtainingspare-timepractisingcertificatesareexactlythesameasforfulltimecertificates.

Generally,theholderofaspare-timecertificatewillberequiredtocomplywiththeaboveinordertoretaintheircertificate.Thereisareducedannualfee,intheUKandIreland,wherepracticeincomedoesnotexceed£5,000perannum.(Inothercountries,thereisnofeeforafullpractisingcertificateinanyevent.)

ACCAholdsonfiledetailsofamember’sresidentialandbusinessaddressesandthatofthespare-timepracticeifitconstitutesathirdaddress.Itisessentialwhenreportingchangesinbusinessdetailsoraddressesthatitisclearwhichaddressistobeamended.

transferring from a practising certificate to a practising certificate and audit qualificationInrespectoftheUKandIreland,itispossibletotransferfromapractisingcertificatetoapractisingcertificateandauditqualificationprovidedtheindividualmeetstheeligibilityrequirements(ieobtainsthenecessarysupervisedauditexperiencewithanACCAApprovedEmployer–practisingcertificatedevelopment(audit)).Furtherinformationrelatingtothepractisingcertificateandauditqualificationmaybefoundinsection2.

UK consumer credit act 1974 – UKIntheUK,theOfficeofFairTradinghas,undertheConsumerCreditAct1974,grantedACCAaGroupLicence.TheGroupLicencecoversmembers’professionalactivitiesinconsumercredit,creditbrokerage,debtadjusting,debtcounselling,debtadministrationandprovisionofcreditinformationservices(includingcreditrepair).ThecoveraffordedbytheGroupLicenceislimitedtolicensableactivitiessetoutabovearisinginthecourseofamember’snormalbusiness.MemberswhoselicensableactivitiesareaprimaryactivitywillnotbecoveredbytheGroupLicenceandwillneedtoobtaintheirownstandardLicencefromtheOfficeofFairTrading.

TheGroupLicenceautomaticallycoverssolepractitioners,partnershipsandcompanieswherethesolepractitioner/partners/directorsholdACCApractisingcertificatesorinsolvencylicencesorthepracticeisregisteredtocarryoutauditworkbyACCAorispermittedtodescribeitselfasCharteredCertifiedAccountantsorAuthorisedPublicAccountants.(CoverundertheGroupLicenceisprovidedatnoadditionalchargetothesepractitioners/firms.)Anyotherfirmundertakingworkrequiringalicence,orafirmeligibletobecoveredbytheGroupLicencebutundertakingworkoutsidethescopeoftheGroupLicence,mustobtainaseparatelicencefromtheOfficeofFairTrading.AseparatefactsheetregardingtheConsumerCreditActcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

money laundering – UKanti-money launderingHoldersofpractisingcertificatesarerequiredtocomplywiththerequirementsofrelevantmoneylaunderinglegislationandregulation,includingspecificallythat:

• theirpracticehasanominatedofficertotakeresponsibilityforcompliance

• thereareproceduresinplacetogatherandretainevidenceoftheidentificationofallclients

• principalsandstaffintheirpracticereceiveappropriatetraining• ongoingcompliancemonitoringiscarriedout,and• suspicionsofmoneylaunderingarereportedasrequiredbylaw.

IntheUK,anypersonwhoprovidesaudit,insolvency,tax,accountancyortrustandcompanyservicesmustbesupervisedbyarecognisedsupervisoryauthorityundertheMoneyLaunderingRegulations2007(employeesdonotrequiresupervision).FurtherguidanceisavailableonACCA’swebsiteatwww2.accaglobal.com/pubs/members/publications/technical_factsheets/downloads/145.pdf

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MemberswhoprovideaccountancyserviceswithinthetermsoftheMoneyLaunderingRegulations2007bywayofbusinesswhichfalloutsidethemeaningdescribedbyregulation4oftheGlobalPractisingRegulations(forexamplebook-keeping)willbesubjecttosupervisionforcompliancewiththeanti-moneylaunderingprovisionsundertheMoneyLaunderingRegulations2007.Insuchcases,eligiblemembersshouldconsiderobtainingapractisingcertificatefromtheAssociationinordertobesupervisedbytheAssociation.Alternatively,membersmustregisterwithHMRevenueandCustomsoranotherbodyrecognisedforsuchpurposes.

IfyourfirmiscontrolledbyACCAmembers(ieatleasthalfofthepartners/directorsaremembersofACCAandtheACCApartners/directorscontrolatleast51%ofthevotingrights)orholdsanauditingcertificatefromACCAyou/yourfirmareautomaticallysupervisedbyACCA.Ifyourfirmdoesnotmeettheserequirementsyouwillneedtobesupervisedbyanotherrecognisedsupervisoryauthority,suchasHMRC.AflowcharttohelpyoudeterminewhetherornotyouaresupervisedbyACCAcanbefoundonACCA’swebsiteatwww.accaglobal.com/documents/nmLr_flowchart.pdf

registering for investment business in the UKACCAisaDesignatedProfessionalBody(DPB)undertheFinancialservicesandMarketsAct2000.Thisenablesmemberfirmstocarryoutalimitedrangeofregulatedactivities,withouthavingtoobtaindirectauthorisationfromtheFinancialservicesAuthority(FsA),providedthoseactivitiesare‘incidental’tothecoreaccounting,auditing,taxationandbusinessadviceactivitiesofthefirm.Thislimitedrangeofregulatedactivitiesisknownasexemptregulatedactivities.Thescopeoftheexemptregulatedactivitiesandtheapplicationprocessaresetoutinsection3.AnapplicationformcanbedownloadedfromACCA’swebsiteat www.accaglobal.com/members/professional_standardsorobtainedfromAuthorisationatACCA.

AnyACCAfirmcarryingout,orplanningtocarryout,aregulatedactivity(otherthananexemptregulatedactivity)willrequiredirectFsAauthorisation.

applying for a firm’s investment business certificate (ireland)AfirminIrelandwishingtoundertakeactivitieswithinthescopeoftheIrishInvestmentIntermediariesAct1995mustbeappropriatelyauthorisedbyanApprovedProfessionalBody(APB).ACCAisabletoauthorisefirmsthroughthemechanismofaninvestmentbusinesscertificate(Ireland).Anapplicationformforapplyingforaninvestmentbusinesscertificate(Ireland)canbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorobtainedfromAuthorisationatACCA.Investmentbusinesscertificates(Ireland)canonlybeissuedtofirmscontrolledbyholdersofACCApractisingcertificatesortheequivalentissuedbyotherAPBs.Furtherinformationcanbefoundinsection4.

practiSinG certificate feeS – 2012UK, ireland, Jersey, Guernsey and Dependencies and the isle of man:Practisingcertificate–full-time£393Practisingcertificate–spare-time,wherepracticeincomeislessthan£5,000perannum£83Practisingcertificateandauditqualification–spareandfull-time£393

other countries:Allcategories–freeofcharge.


2 the audit qualification and firm’s auditing certificate

TheCharteredCertifiedAccountants’GlobalPractisingRegulations2003(GPRs)andAnnexessetouttheeligibilitycriteriaforobtainingapractisingcertificateandauditqualification,anddetailthecontinuingobligationsplacedonholdersoftheauditqualification.Theyalsolaydowntheconditionsfortheissueof,andtheongoingrequirementsforholding,firms’auditingcertificates.

tHe inDiViDUaL’S practiSinG certificate anD aUDit QUaLificationThepractisingcertificateandauditqualificationisavailableonlytomembersintheUK(includingJersey,GuernseyandDependenciesandtheIsleofMan),Ireland,CyprusandZimbabwe.MemberswhointendtoundertakeauditworkintheUKmustapplyforapractisingcertificateandauditqualificationfortheUKandmemberswhointendtoundertakeauditworkinIrelandmustapplyforapractisingcertificateandauditqualificationforIreland.(IntheUKandIreland,ifauditsaretobeundertaken,afirm’sauditingcertificatemustalsobeheld.)Beforeapplyingfortheauditqualification,membersarerequiredtorecordtheirexperienceinaPractisingCertificateTrainingRecord(PCTR),copiesofwhichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards.Thesubsequentstepsinobtainingtheauditqualificationaresetoutbelow.

HoW to oBtain tHe practiSinG certificate anD aUDit QUaLificationUKToobtainthepractisingcertificateandauditqualificationintheUK(seebelowforIreland,Jersey,GuernseyandDependencies,theIsleofMan,CyprusandZimbabwe),theindividualmust:

•obtainACCA’srecognisedprofessionalqualification(seebelow);or

•havetherighttopractisetheprofessionofcompanyauditorpursuanttotheEuropeanCommunities(Recognitionof

THEAUDITQUALIFICATIONANDFIRM’sAUDITINGCERTIFICATE

ProfessionalQualifications)(FirstGeneralsystem)Regulations2005(s.I.2005/18)(subjecttoanyrequirementsimposedonhimorherbyACCA);or

•haveanoverseasqualificationapprovedbytheUKsecretaryofstateundersection1221oftheCompaniesAct2006andhavepassedACCA’saptitudetest(ifapplicable);or

•havepreviouslyheldanequivalentcertificateissuedbyACCA*.

irelandToobtainthepractisingcertificateandauditqualificationinIrelandtheindividualmust:

•obtainACCA’srecognisedprofessionalqualification(seebelow);or

•meettheconditionsasastatutoryauditorinaccordancewithregulation24oftheEuropeanCommunities(statutoryAudits)(Directive2006/43/EC)Regulations2010oftheRepublicofIrelandandhavepassedanaptitudetest(ifapplicable)

•beathirdcountryauditorandmeettheconditionsasastatutoryauditorinaccordancewithRegulation24oftheEuropeanCommunities(statutoryAudits)(Directive2006/43/EC)Regulations2010oftheRepublicofIrelandandhavepassedanaptitudetest(ifapplicable);or

•havepreviouslyheldanequivalentcertificateissuedbyACCA*.

* ifthecertificatewasheldmorethantwoyearspriortotheapplicationforapractisingcertificateandauditqualification,memberswillberequiredtoprovidedetailsofauditexperienceandaudit-relatedCPDachievedintheprevioustwoyears,beforeapractisingcertificateandauditqualificationcanbeawarded.

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recognised professional qualificationToobtaintherecognisedprofessionalqualificationamembermusthavecompletedthreeyearsofpracticaltraininginapublicpracticewithanACCAApprovedEmployer–practisingcertificatedevelopment(audit),workingeitherasanemployeeorsub-contractor,twoyearsofwhichmustbepost-membership.

(Trainingobtainedinapracticewith‘approved’statusgrantedbyanotherRecognisedQualifyingBodyundertheUKCompaniesAct2006orIrishCompaniesAct1990willnotcountunlessthepracticehasalsobeenregisteredandacceptedbyACCA.)

Thetrainingmustcover:audit,professionalconduct,technical(accounting,businessadvice,developmentandmeasurement,taxation,andbusinessassuranceandinternalreview)andmanagement.Atleast44weeksoftrainingmustbeinauditwork.Thisshouldincludeatleast22weeksspecificallyinstatutoryaudit.

Memberswhoseauditexperiencewasachievedmorethantwoyearspriortotheirapplicationforapractisingcertificateandauditqualificationwillneedtoprovidedetailsofauditexperienceandaudit-relatedCPDachievedintheprevioustwoyears,beforeapractisingcertificateandauditqualificationcanbeawarded.Auditexperienceobtainedmorethantwoyearspreviouslymaymeetthepracticaltrainingrequirementsoutlinedabove,butACCAalsoneedstobesatisfiedthatmembers’auditknowledgeisuptodate,andthattheyremaincompetenttodoauditwork,beforegrantingapractisingcertificateandauditqualification.

Membersmaychoosetosimply‘bank’theirexperience,andnotapplyforapractisingcertificateandauditqualificationstraightaway.However,iftheydecidetoapplyinthefutureandtheirauditexperienceismorethantwoyearsoldatthepointoftheirapplication,theywillneedtodemonstratehowtheyhaveremainedcompetenttodoauditwork.

Atleasttwoyearsoftrainingmustbeobtainedunderthesupervisionof:

i amemberholdingapractisingcertificateandauditqualification;or

ii anyotherpersonhaving,intheopinionofCouncil,adequatequalificationsandexperienceandwhoisafullyqualifiedstatutoryauditorunderparagraph9(4)ofschedule11totheCompaniesAct2006oftheUK,suchasstatutoryauditorspractisinginEEAstates,subjecttotherelevantauthorisations(orequivalentpersonsinrelationtoapplicantsforcertificatesrelatingtocountriesotherthantheUnitedKingdom).

Inaddition,membersmusthavecompletedtheUKorIrishvariantsofthefollowingACCAexaminations:

•PaperP7,Advanced Audit and Assurance(orPaper10,AccountingandAuditPracticeor3.1,AuditandAssuranceservicesunderpreviousexaminationsyllabi)

•Thetaxandlawvariantsofthejurisdictiontowhichtheauditqualificationapplies.

•TheadaptedPaperP2,Corporate Reporting,ifthispaperwascompletedonorafter1January2011.

(NBCIPFAmembers(unlesstheyhavecompletedthepapersspecifiedwithinCIPFA’sprofessionalaccountancyqualificationtobeeligibleforitsauditqualification)admittedtoACCAmembershipunderMembershipRegulation3(e),mustcompletetheseexaminationpapers.)

studentswhoareawardedexemptionsfromallpapersintheFundamentalslevelofthesyllabusarerequiredtocompletetheProfessionallevelwithinfiveyearsshouldtheywishtosubsequentlyapplyforaUKorIrishpractisingcertificateandauditqualification.similarly,studentsintheUKwhoareeligibleforexemptionfromallorpartoftheFundamentalslevelonthebasisofqualificationsgainedmorethanfiveyearspreviously(atthedateofinitialregistrationasanACCAstudent)willforfeittheseexemptionsandberequiredtocompletetheFundamentalslevelexams.

Jersey, Guernsey and Dependencies and the isle of manTherequirementsforamemberwishingtoobtainapractisingcertificateandauditqualificationspecificallyforJersey,GuernseyandDependenciesandtheIsleofManare:

•tohavebeenanACCAmemberforaperiodofatleasttwoyears;

•tohavecompletedthreeyears’practicaltraininginapublicpracticewithanACCAApprovedEmployer–practisingcertificatedevelopment(audit),workingeitherasanemployeeorsub-contractor,underthesupervisionof:i amemberholdingapractisingcertificateandauditqualification;or

ii anyotherpersonhavingintheopinionofCounciladequatequalificationsandexperienceandwhoisafullyqualifiedstatutoryauditorunderparagraph9(4)ofschedule11totheCompaniesAct2006oftheUK;

Trainingmustcover:audit,professionalconduct,technical(accounting,businessadvice,developmentandmeasurement,taxation,andbusinessassuranceandinternalreview)andmanagement.

cyprusTherequirementsforamemberwishingtoobtainapractisingcertificateandauditqualificationspecificallyforCyprusare:

•tohavebeenanACCAmemberforaperiodofatleasttwoyears;andtohavecompletedthreeyearsoftraininginpublicpracticewithanACCAApprovedEmployer–practisingcertificatedevelopment(audit),underthesupervisionofanappropriatelyqualifiedprincipal,twoyearsofwhichshallhavebeenobtainedafteradmissiontomembership,savethatthetraininginauditmaybecompletedatanytimeinthethreeyears;or

•tohavepreviouslyheldanequivalentcertificateissuedbyACCA*.

* ifthecertificatewasheldmorethantwoyearspriortotheapplicationforapractisingcertificateandauditqualification,memberswillberequiredtoprovidedetailsofauditexperienceandaudit-relatedCPDachievedintheprevioustwoyears,beforeapractisingcertificateandauditqualificationcanbeawarded.

13practice information HanDBooK THEAUDITQUALIFICATIONANDFIRM’sAUDITINGCERTIFICATE

Additionally,membersmustalsosatisfyanyotherqualificationrequirementsinaccordancewiththelawofCyprus.

Thetrainingmustconsistofexperienceinallofthefollowing:audit,professionalconduct,technical(accountancy,businessadvice,developmentandmeasurement,taxation,andbusinessassuranceandinternalreview)andmanagement.

ZimbabweTherequirementsforamemberwishingtoobtainapractisingcertificateandauditqualificationspecificallyforZimbabweare:

•tohavecompletedthreeyearsoftraininginpublicpracticewithanACCAApprovedEmployer–practisingcertificatedevelopment(audit),underthesupervisionofanappropriatelyqualifiedprincipal(orfiveyearsinthecaseofanapplicantwhoisnotaholderofauniversitydegree);or

•tohavepreviouslyheldanequivalentcertificateissuedbyACCA.

Thetrainingmustconsistofexperienceinaudit,accountingandtaxation.(NBHoldersofapractisingcertificateandauditqualificationinZimbabwemayapplytothePublicAccountantsandAuditorsBoardforregistrationasapublicauditororpublicaccountantinZimbabwe.)

transferring from a practising certificate to a practising certificate and audit qualificationInrespectoftheUKandIreland,itispossibletotransferfromapractisingcertificatetoapractisingcertificateandauditqualificationprovidedtheindividualmeetstheeligibilityrequirements(ieobtainsthenecessarysupervisedauditexperienceinanACCAApprovedEmployer–practisingcertificatedevelopment(audit)).

Itisnot,generally,possibletotransferapractisingcertificateandauditqualificationbetweencountries.

tHe firm’S aUDitinG certificateAfirmintheUKorRepublicofIreland(beingapartnership,company,limitedliabilitypartnership*orevenasolepractitioner)thatholds,orintendstohold,auditappointmentswillneedtoobtainauditregistrationfromaRecognisedsupervisoryBody(RsB)intheUKor,intheRepublicofIreland,aRecognisedAccountancyBody(RAB).ACCAisabletoregisterfirmsinthisregardthroughthemechanismofafirm’sauditingcertificate.AnapplicationformcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorobtainedfromAuthorisationatACCA.

* LimitedliabilitypartnershipsdonotexistintheRepublicofIrelandbutalimitedliabilitypartnershipintheUKmayapplyforafirm’sauditingcertificatefortheRepublicofIreland.

applying for a firm’s auditing certificateTheGPRsprovidethebasisforACCA’scompliancewiththeprovisionsrelatingtotheregistrationofauditorsintheCompaniesAct2006andtheIrishCompaniesAct1990andRegulation24oftheEuropeanCommunities(statutoryAudits)(Directive2006/43/EC)Regulations2010.TheGPRsarepublishedintheACCA Rulebook.Thelegislationpermitsauditappointmentstobeheldinthenamesoffirms(soleproprietorshipsand

partnerships)andincorporatedfirms(limitedcompaniesand,intheUK,limitedliabilitypartnerships),ratherthaninthenamesofindividualpartners/directors/memberswithinthosefirms.FirmswishingtoactasregisteredauditorsmustobtainauditregistrationfromanRsBorRAB,suchasACCA.ACCAisabletograntregisteredauditorstatusbymeansoftheissueoffirms’auditingcertificates.

FirmsmustmakeseparateapplicationsforUKandIrishauditingcertificates.

control qualifications necessary for an auditing certificate to be grantedFirms’auditingcertificatesmaybeheldbyanyfirmcontrolledbyholdersoftheACCApractisingcertificateandauditqualificationorequivalentcertificatesissuedbytheInstituteofCharteredAccountantsinEnglandandWales(ICAEW),theInstituteofCharteredAccountantsofscotland(ICAs)andCharteredAccountantsIreland(CAI).Thisincludessoleproprietorshipsandanypartnershiporincorporatedfirm.ThisisirrespectiveofwhetherornotthefirmcontainsanyACCAprincipals,partnersordirectors.

ACCAhasalsoestablishedaschemeforfirmsintheUKcontrolledbymembersoftheAssociationofAuthorisedPublicAccountants(AAPA).suchfirmsshouldobtaintheAAPAschemedocumentation,whichisavailablefromAuthorisationatACCAorfromtheACCAwebsiteatwww.accaglobal.com/aapa/aapa/forms

ACCAwillalsoconsiderapplicationsfromfirmscontrolledbymembersoftheInstituteofCertifiedPublicAccountantsinIreland,butonlyinrespectofauthorisationintheRepublicofIreland.suchfirmsshouldrefertotheremainderofthissectionasapplicableandcompletetherelevantform.

Eligiblefirms(iecontrolledbyACCA/ICAEW/ICAs/CAImembers)mayholdfirms’auditingcertificatesforboththeUKandIrelandbutmustcompleteseparateapplicationforms.

Sole practitionersAnACCAmemberwhoholdsapractisingcertificateandauditqualificationandwhowishestocarryoutauditworkmust,inaddition,holdafirm’sauditingcertificate.Thisappliesevenifthesolepracticetradesinthepractisingcertificateholder’sname.AuditworkincludestheauditsofUKorIrishregisteredcompanies,otherstatutorilyregulatedentitiesandotherassignmentsrequiringaregisteredauditor.Onlyafirm(includinganysoleproprietorpractisingintheirownname)holdingafirm’sauditingcertificatewillbeabletodescribeitselfasaRegisteredAuditor(s)andwillhaveitsdetailsplacedontheRegisterofstatutoryAuditorsintheUK,ortheregisterheldbytheCompaniesRegistrationOfficeinIreland.

InthecaseofACCAsolepractitioners,thereisnoadditionalformorfeeforthefirm’sauditingcertificate.AsolepractitionerCharteredAccountantwhoholdsapractisingcertificatefromICAEW,ICAsorCAIiseligibletoapplyforanACCAfirm’sauditingcertificateforhisorherfirm,andtocontinuetodescribehisorherpracticeasafirmofCharteredAccountants.ThereisnorequirementforthemtobecomeamemberofACCAbuttheymaydosoiftheywish.AnapplicationformfordirectadmissiontomembershipcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/admin.Thefirm’sauditingcertificatefeeinthiscaseis£393in2012.

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partnerships, LLps and incorporated firmsPartnerships,incorporatedfirmsand,intheUK,limitedliabilitypartnershipswishingtoholdauditappointmentsmustmakeapplicationsforACCAfirms’auditingcertificates(orseekauthorisationfromanotherRsBorRAB).However,forafirmcomposedwhollyofpartnersordirectorsholdingACCApractisingcertificates,thereisnofeeforafirm’sauditingcertificate.

Mixedfirms,composedwhollyofCharteredCertifiedandCharteredAccountantpartnersordirectors,areeligibleforACCAfirms’auditingcertificates.Inthiscase,the2012feeiscalculatedonthebasisof£393foreachnon-ACCApartnerordirector.

Othermixedfirms(perhapscontainingnon-qualifiedpartnersordirectors)areeligibleforACCAfirms’auditingcertificatesiftheyarecontrolledbyholdersofequivalentqualifications(asdetailedabove).Controlisdeterminedbythedistributionofvoteswithinthefirmonallmaterialmatters,andholdersofrelevantqualificationsmustcontrolatleast51%ofsuchvotes.(ThereisnorequirementtohaveanACCAmemberasapartnerordirectorofafirm.)FirmscontrolledbyCharteredAccountantsmaybeauthorisedbyACCAwhilecontinuingtodescribetheirpracticesas‘CharteredAccountants’.Again,the2012feeisbasedon£393foreachpartnerordirectorwhoisnotanACCAmember.(CharteredAccountantswhoarepartnersordirectorsinfirmswithACCAfirms’auditingcertificatesmay,iftheywish,applyfordirectadmissiontomembershipofACCA.AnapplicationformfordirectadmissioncanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/admin)

Wheretheserequirementsarebeingappliedinconnectionwithalimitedliabilitypartnership,thereferencetoapartnerorpartnersshouldbeconstruedasreferringtoamemberormembersofthelimitedliabilitypartnership.

Inthecaseofafirm’sauditingcertificategrantedtoalimitedliabilitypartnershiporanincorporatedfirm,thereisanadditionalcontrolrequirement–thatthemajorityofvotesonitsboardofdirectors(orofthemembersofalimitedliabilitypartnershipintheUK)mustbeheldbyholdersofrelevantqualifications.

other conditions necessary for the issue of a firm’s auditing certificateWithineachpartnership,limitedliabilitypartnershiporincorporatedfirm,anominatedcontactpartner/directorwillhaveoverallresponsibilityforthefirm’scompliancewiththeconditionsdetailedbelow.

responsibility for audit work–Eachofthepartnersordirectorsandotherpersonsresponsibleforthefirm’sauditworkmustholdanACCApractisingcertificateandauditqualificationoranequivalentcertificate.

control–Inexercisingcontrol,thefirmmusthaveinplacearrangementstopreventunqualifiedindividualsandpersons(whethermembersofthefirmornot)fromexertinginfluenceoverthewayinwhichauditsareconducted.

onGoinG conDitionS for HoLDinG a practiSinG certificate anD aUDit QUaLification anD firm’S aUDitinG certificatefit and proper statusEverypartnerordirectormustbeafitandproperpersoninorderthatthefirmmayholdanauditingcertificate.ACCAmaytakeintoaccountanymatterwhichrelatestoanyofthepartnersordirectorsofthefirmoranyoneemployedby,orassociatedwithit,inconnectionwithpublicpractice,suchasfailuretocooperatewithACCAorprovidingfalse,inaccurate,misleadingorincompleteinformationtoACCA.

Thereisalistofsituationsinwhichapractisingcertificateholderwouldfailtomeetthefitandproperstatusrequirementssetoutinsection1.Inadditiontotheabovecriteria,wheretheissueofapractisingcertificateandauditqualificationisconcerned,theAdmissionsandLicensingCommitteewilltakeintoaccountwhetheranindividualhascontravenedanyprovisionoflawrelatingtotheseekingofanappointmentoractingasauditororinsolvencypractitionerortothecarryingonofexemptregulatedactivitiesorinvestmentbusiness.

responsibility and controlThecontrolqualificationsnecessaryforanauditingcertificatetobegranted,setoutabove,mustbemaintainedthroughouttheperiodthatthefirmholdsanauditingcertificate.Furtherdetailsregardingthecontrolofthefirm(togetherwithprovisionsconcerningthedescriptionofthefirm)maybefoundinaseparatefactsheetentitled‘Controlanddescriptionrequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

Eachofthepartnersordirectorsresponsibleforthefirm’sauditworkmustcontinuetoholdanACCApractisingcertificateandauditqualificationoranequivalentcertificate.Thefirmmustalsomaintainitsarrangementsforensuringthattheindependenceandintegrityofitsauditworkarenotinfluencedbyunqualifiedindividuals.

professional indemnity insuranceFirmsmustholdprofessionalindemnityinsurance(PII).Covermustalsoincludefidelityguaranteeinsurance(FGI)inrespectofanypartners,directorsandemployees.PIIshouldprovidecoverinrespectofallcivilliabilityincurredinconnectionwiththeconductofthefirm’sbusinessbythepartners,directorsoremployees,andFGIshouldincludecoveragainstanyactsoffraudordishonestybyanypartner,directororemployeeinrespectofmoneyorgoodsheldintrustbythefirm.MembersceasingtopractisemustmakearrangementsforthecontinuedexistenceofPIIand,whereapplicable,FGIforaperiodofsixyears.

Responsibilityforobtainingadequatecoverlieswiththefirm,andmaybeeffectedwithanyreputableinsurancecompanyorunderwriter.FurtherinformationonPII,includingdetailsofthelimitofindemnity,canbefoundinaseparatefactsheetentitled‘Professionalindemnityinsurancerequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

15practice information HanDBooK THEAUDITQUALIFICATIONANDFIRM’sAUDITINGCERTIFICATE

continuity of practiceAfirmmustprovideforcontinuityofpractice.Provisionforcontinuityshouldbemadewithinthefirm’spartnershipagreementorarticlesofassociation,providedatleasttwopartners/directorsareregisteredauditors,orbyenteringintoawrittenagreementwithanotherfirmofregisteredauditors.(Thenameandaddressofanotherfirmresponsibleforcontinuitymustbegivenontheapplicationformforanauditingcertificate.)ItismandatorythatawrittenagreementbemadeandthismaybeinspectedbyACCA.

WherethefirmpracticesinboththeUKandtheRepublicofIreland,continuityarrangementsmustbemadewithafirm(orfirms)inbothcountries.Furtherinformationoncontinuityofpracticecanbefoundinaseparatefactsheetentitled‘Continuityofpracticerequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards orrequestedfromAuthorisation.

notificationIntheUK,ACCAisrequiredtosupplyinformationtotheRegisterofstatutoryAuditors(www.auditregister.org.uk).Eachentryintheregisterwillincludethenameandabusinessaddressofthefirm.Inaddition,inthecaseofincorporatedfirms,theregisterwillincludethenameandbusinessaddressofeachpersonwhoisadirectororholdssharesinthefirm,andinthecaseofapartnership(includinglimitedliabilitypartnerships)orsoleproprietorshipitwillincludethename(s)andaddress(es)oftheproprietororpartners/members.InIreland,similarinformationissuppliedtotheregisterheldbytheCompaniesRegistrationOffice(www.cro.ie).

InordertoenableACCAtokeepthisregisteruptodate,firmsarerequiredtonotifyACCAofanumberofdifferenteventsorchanges.

Furtherinformationcanbefoundinaseparatefactsheetentitled‘Notificationrequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

continuing professional developmentAllmembersarerequiredtoundertakeCPD,inaccordancewithMembershipRegulation4(4).TherearefouralternativeroutestoobtainingsatisfactoryCPD.TheseareexplainedonACCA’swebsiteatwww.accaglobal.com/members/cpd

Membersfollowingtheunitroutearerequiredtoundertakeaminimumof40unitsofrelevantCPDeachyear,ofwhich21unitsshouldbeverifiableCPD.Practisingmembersshouldbeabletodemonstratethattheyhavemaintainedcompetenceinthespecialisedareasoftheirpractices.

FurtherinformationonCPDcanbefoundinaseparatefactsheetentitled‘Continuingprofessionaldevelopment(CPD)forpractisingmembers’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

conduct of public practiceAllpartners/directorsandotherpersonsresponsibleforauditworkmustcomplywithACCA’sCodeofEthicsandConduct,especiallyinconnectionwiththeproperconductofpublicpractice,integrityandindependence.TheCodeofEthicsandConductisavailablefromtheACCA Rulebook.Aseparatefactsheetentitled‘CodeofEthicsandConduct’isalsoavailablefromACCA’swebsiteatwww.accaglobal.com/members/professional_standards

technical standardsAllpartners/directorsandotherpersonsresponsibleforauditworkmustcomplywithACCA’sTechnicalstandards,and,inparticular,firmspractisingintheUKandtheRepublicofIrelandmustcomplywiththeInternationalstandardsonAuditing(UKandIreland)issuedbytheAuditingPracticesBoard.

monitoringAllpartners/directorsandotherpersonsresponsibleforauditworkmustco-operatewithACCAinitsmonitoringandenforcementofcompliancewiththebye-lawsandregulations.

ACCAwillmonitorandenforceitsbye-lawsandregulationsbyanalysingfirms’annualreturnsandcarryingoutmonitoringvisits.Monitoringvisitswilltakeplacenormallyonceeverysixyears,althoughtheymaybeatmorefrequentintervalsifnecessaryasaresultofcomplaintsorsignificantchangesinapractice.Additionalvisitsorfollowupactionmayalsoresultfromavisitwhichrevealedinadequacies.

Furtherinformationonmonitoringcanbefoundinaseparatefactsheetentitled‘Monitoringrequirementsandglobalqualityassurance’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards/monitoringorrequestedfromAuthorisation.

DescriptionsAfirmholdinganACCAauditingcertificatemayincludethefollowingstatementontheirbusinessstationery:

‘RegisteredasauditorsbytheAssociationofCharteredCertifiedAccountants’.

Firmsmayalsousethedescription‘RegisteredAuditors’.

Furtherinformationcanbefoundinaseparatefactsheetentitled‘Controlanddescriptionrequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

otHer USefUL informationUsefulinformationabouttheUKConsumerCreditAct1974,moneylaunderingandregisteringforinvestmentbusinessintheUKandIrelandcanbefoundinsection1.

Spare-time certificatesAmemberisregardedasbeinginspare-timepracticeifheorsheholdsapractisingcertificateandauditqualificationwhileemployedinindustry,commerce,publicserviceoremployed(asopposedtobeingaprincipal)inapractice.Theexperience

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requirementsforobtainingaspare-timepractisingcertificateandauditqualification,andtheongoingconditions,areexactlythesameasforfull-timecertificates.

RenewalofapractisingcertificateandauditqualificationAllpractisingcertificates(includingthepractisingcertificateandauditqualification)arerenewableannually.PractisingcertificatesfortheUKandIrelandarevalidonlyuntil31Decemberintheyearofissue.Renewalnotificationsforthesepractisingcertificatesareusuallysentinseptemberofeachyear.Practisingcertificatesforallothercountriesarevaliduntil30Junefollowingthedateofissue,andtherenewalnotificationsforthesecertificatesareusuallysentinMarchofeachyear.

renewal of firms’ auditing certificatesAllfirms’auditingcertificatesarevalidonlyuntil31Decemberintheyearofissue.Allfirms’auditingcertificatesarerenewableannually.Afirmthatceasestoholdafirm’sauditingcertificatewillbeeligibletoresumeholdingoneprovidingitmeetsthefitnessandproprietyrequirementsandotherongoingconditionsatthetimeofthesubsequentapplication.

JurisdictionThelegislationreferredtodoesnotextendtotheChannelIslandsorIsleofMan.Firms’auditingcertificatesarenot,therefore,necessaryinthesejurisdictions.AfirmbasedoutsidetheUKandIrelandmay,ifitiseligible,holdafirm’sauditingcertificateifitwishestoholdUKorIrishauditappointments.Insuchcasesthefeesandconditionsreferredtoaboveremainapplicable.However,firms’auditingcertificatesarenotissuedwhereitisproposedtoonlyholdauditappointmentsofcompaniesregisteredoutsidetheUKandIreland.

practiSinG certificate anD aUDit QUaLification feeS – 2012ThefeeforapractisingcertificateandauditqualificationvalidintheUK,Ireland,Jersey,GuernseyandDependenciesandtheIsleofManis£393.ThereiscurrentlynofeeleviedforapractisingcertificateandauditqualificationinCyprusorZimbabwe.

firm’S aUDitinG certificate fee – 2012Thefeeforafirm’sauditingcertificateiscalculatedonthebasisof£393foreachnon-ACCAprincipalofthefirm.


3 registering for investment business in the UK

ACCAhasbeengrantedDesignatedProfessionalBody(DPB)status,undertheFinancialservicesandMarketsAct2000,byHMTreasury.DPBstatusenablesACCAtoregulatefirmstoundertakealimitedrangeofinvestmentactivitiesknownasexemptregulatedactivities.

introDUctionFirmsthatmaywishtoconductinvestmentbusinesshavetheoptionofdirectregistrationwiththeFinancialservicesAuthority(FsA)inordertocarryoutmainstreaminvestmentbusinessactivities.Alternatively,ACCA’sDesignatedProfessionalBodyRegulations2001(DPBRs)mayapplytothosefirmsthatdonot(orcannot)obtaindirectregistration.

ACCAhasputinplaceasimplesetofregistrationarrangementsformembersandfirmswhowishtoundertakeexemptregulatedactivities.Therearenoseparatefeesforfirmsregisteringtoundertakeexemptregulatedactivities.TheapplicationformcanbefoundonACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation(tel:+44(0)1415344175).

Thescopeoftheexemptregulatedactivitiesis,toagreatextent,specifiedintheFinancialservicesandMarketsAct2000(RegulatedActivities)Order2001.ThisissummarisedinACCA’sDPBRs,whicharepublishedintheACCA Rulebook.

Asolepractitioner’sfirmorapartnershiporincorporatedfirmthatiswhollycomposedofACCApartners/members/directorsmay,inmostcircumstances*,applyforexemptregulatedactivitiesregistrationbysimplycompletingtheapplicationform.

AmixedpartnershipormixedincorporatedfirmwillbeeligibletoapplytoberegisteredbyACCAforexemptregulatedactivitiespurposessubjecttothefirmcontainingatleastoneACCApartner/member/directorandthefirmbeingcontrolledbypartners/members/directorswhoaremembersofaDPB*.Aswellascompletingtheapplicationform,anadditionalform(PIB(UK))shouldbecompletedbyeachnon-ACCApartner/member/director

onwhichtheyarerequiredtogivedeclarationsthattheywillbeboundbyACCAregulationsasiftheywereACCAmembers.ThisformcanalsobefoundonACCA’swebsite.Atthetimeofwriting,thereisnofeeformixedfirmsholdingexemptregulatedactivitiesregistrationthroughACCA.However,thisisunderreview,anditispossiblethatafeeformixedfirmswillbeintroducedinthefuturewhichreflectstheamountofadditionaladministrativeandmonitoringworkgeneratedbyregisteringmixedfirms.

(*FirmswhicharedirectlyauthorisedbytheFsAforinvestmentbusinesspurposeswillnotbeeligibletocarryoutexemptregulatedactivitiesundertheDPBarrangements.)

eLiGiBiLitY criteriaTheDPBRsapplytoallmembersandfirmsthatsatisfytherelevanteligibilityrequirements.Theyapplytoexemptregulatedactivitiescarriedonin,intoorfromtheUnitedKingdom.TheDPBRs,therefore,applytoNorthernIreland,butnottotheRepublicofIreland.

Regulation3oftheDPBRssetsouttheeligibilityrequirementsindetail,andthesearesummarisedbelow:

Sole practitionersAsolepractitionerwillonlybeeligibletocarryonregulatedactivitieswhere:

•he/sheisamember;•he/sheholdsapractisingcertificate;and•his/hermainbusinessistheprovisionofpublicpracticeaccountancyservices.

REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK

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partnershipsApartnershipwillonlybeeligibletocarryonregulatedactivitieswhere:

•atleastoneofthepartnersinthefirmisamember,andeachpartnerwhoisnotamemberisentitledtopractiseaccountancyandissubjecttotheregulationsofACCA;

•thepartnerswhoaremembersofACCAorofanotherdesignatedprofessionalbody(ifany)manageorcontrolthefirm;and

•themainbusinessofthepartnershipistheprovisionofpublicpracticeaccountancyservices.

Wherethisregulationisbeingappliedinconnectionwithalimitedliabilitypartnership,thereferencetopartnerorpartnersshouldbeconstruedasreferringtoamemberormembersofthelimitedliabilitypartnership.

companiesAcompanywillonlybeeligibletocarryonregulatedactivitieswhere:

•atleastonedirectorandcontrollerisamember,andeachdirectorwhoisnotamemberisentitledtopractiseaccountancyandissubjecttotheregulationsofACCA;

•thedirectorswhoaremembersofACCAorofanotherdesignatedprofessionalbody(ifany)manageorcontrolthefirm;and

•itsmainbusinessistheprovisionofpublicpracticeaccountancyservices.

renewal of firms’ exempt regulated activities registrationAllfirms’exemptregulatedactivitiesregistrationsarevalidonlyuntil31Decemberintheyearofissueandarerenewableannually.

tHe meaninG of inciDentaLTheregimeenablesACCA,asaDPB,toallowitsmemberfirmstocarryoutalimitedrangeofinvestmentbusinessactivities,withoutthosefirmshavingtoobtaindirectauthorisationfromtheFsA,providedtheseactivitiesare‘incidental’tothecorebusinessofaccountancyservices.

Regulation3(5)oftheDPBRsprovidesguidanceonthefactorsthatfirmsshouldconsiderwhenassessingwhethertheinvestmentbusinessactivityoractivitiestheyareundertakingare‘incidental’.Thisisaqualitativetestratherthanaquantitativetest.The20%testthatappliedundertheInvestmentBusinessRegulationsis,therefore,notrelevant.

Inorderforafirmtoqualifyascarryingonregulatedactivitiesinanincidentalmanner:

i themainactivityofthefirmmustbetheprovisionofpublicpracticeaccountancyservicesotherthanregulatedactivities;

ii thecarryingonoftheregulatedactivitiesmustnotbeisolatedfromotheractivitiesofthefirmsothatitisineffectaseparatebusiness;and

iiithefirmdoesnotcarryon,orholditselfoutascarryingon,aregulatedactivityotherthanonewhichisallowedbytheDPBRsorinrelationtowhichthefirmisanexemptperson.

Thefollowingadditionalrequirementsarerelevantinassessingwhethertherequirementin(ii)aboveismet:

i regulatedactivitiesshouldonlybeprovidedinconjunctionwiththeprofessionalservicesofthefirm;

ii thefirmshoulddisclosetoanexistingclientorapotentialclientthatthefirmisanaccountancyfirmwhichmayonlycarryonalimitedrangeofinvestmentbusinessactivities;

iiithefirmmustnotreceivefromapersonotherthanitsclientanypecuniaryrewardorotheradvantage,forwhichitdoesnotaccounttoitsclient,arisingoutofitscarryingonofregulatedactivities(seebelow);

ivthecarryingonofregulatedactivitiesmustbewithinthescopeofthegeneralethicalcodeortherulesgoverningtheprofession;and

v thefirmmustnotholdoutthattheexemptregulatedactivitiesarecarriedoutona‘stand-alone’basisseparatefromthemainactivityofthefirm.

pecUniarY reWarDAnypecuniaryrewardorotheradvantagefromapersonotherthantheclient,arisingoutofcarryingonexemptregulatedactivities,canonlybereceivedwherethememberorfirmaccountstotheclientforthatpecuniaryrewardorotheradvantage.‘Accountstotheclient’means:

•remittinganypecuniaryrewardoradvantage(suchascommissionsreceivedfromproductproviders)totheclient;or

•informingtheclientofthepecuniaryrewardoradvantageandthathehastherighttorequirethefirmtopaytheamountconcernedtohim,thusallowingoffsettingoftheamountagainstanyfeescharged;or

•obtainingtheclient’sinformedconsent,inwriting,thatthefirmmayretaintheparticularrewardoradvantageinquestion.

Insecuringtheconsentoftheclient,theclientmustbeinformedclearlyofthenatureofthepecuniaryrewardoradvantage,includingitsamountandfrequency,andthattheclienthastherighttorequirethefirmtopaytheamountconcernedtohim.Eveniftheclientconsents,theclientmustbeinformedeachtimeapecuniaryrewardoradvantageisreceived(forexample,eachtimeacommissionisreceived,beitinitialcommissionorrenewalcommission),unlesstheamountandfrequencyarepredetermined(forexample,afixedcommissionreceivableoncepermonthoverthetermofalifeassurancepolicy).

Itisnotconsideredsufficientforfirmsin,say,theletterofengagementtomakeageneraldisclosureregardingthereceiptofanypecuniaryrewardoradvantage,ortoobtainaclient’sgeneralconsenttothefirm’sretentionofsuchpecuniaryrewardoradvantage.

19practice information HanDBooK REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK

WHat actiVitieS can firmS UnDertaKe?TheactivitiesthatACCAregulatedfirmsareabletocarryoutundertheDPBRsaresetoutinregulation4(1).ThisregulationisreproducedinfullinAppendix1.ACCAhasalsoproducedaquestionandanswerguidewhichcoverstheactivitiesfirmsmayundertake.TheguidecanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/documents/dpbregs.pdf

ProhibitedactivitiesThereareanumberofactivitiesthatcannotbecarriedoutbyACCAregulatedfirmsundertheDPBRsbecauseeither:

i theNon-ExemptActivitiesOrderprohibitssuchactivities,orii theDPBRsprohibitsuchactivities.

Therefore,nofirmmaycarryoutanyactivitythatfallswithinthelistofprohibitedactivitiessetoutinregulation4(2),whichisreproducedinAppendix2ofthissection.

regulated mortgage work and insurance mediation activityTheDPBRsincluderegulationsforfirmswishingtoundertakeregulatedmortgagework,long-termcareinsuranceandotherinsurancemediationactivities.Theseregulationsstemfromlegislationandbecameeffectiveatdifferentdates,dependingonthetypeofactivityconcerned:

•Regulatedmortgagecontracts–31October2004•Long-termcareinsurance–31October2004•Otherinsurancemediationactivities–14January2005•Regulatedhomereversionplansandregulatedhomepurchaseplans–6April2007

Firmswishingtoundertaketheaboveactivitiesshouldfamiliarizethemselveswiththeregulations(reproducedinfullinAppendix3).Inparticular,theyshouldensurethat,beforeundertakinganyinsurancemediationwork,they:

i holdprofessionalindemnityinsuranceattheprescribedlevel(ieatleast€1,120,200onaneachandeveryclaimbasisand€1,680,300inaggregateperyear),and

ii havebeenplacedontheFsARegister.

Pleasenotethatreferringaclienttoanotheradviserisnotaninsurancemediationactivity,andisthereforenotsubjecttothenewregulations.Providingmorespecificinformationtoaclientand/ortoanintermediaryorinsurancecompanyisaninsurancemediationactivity,butisexemptfromtheincreasedprofessionalindemnityinsurancerequirement.(Regulation4(4)liststheactivitiesthatdonotconstituteinsurancemediationactivity,andisreproducedinAppendix4.)

conDUct of BUSineSS reGULationSChapter5oftheDPBRssetsoutanumberofconductofbusinessmattersthatfirmsneedtocomplywithinordertoprovideexemptregulatedactivities.Thischaptersetsout,underregulations5,6and7,guidancerelatingtoindependence,relationswithclients,andcomplianceprocedures.

independenceinducementsAfirmmusttakereasonablestepstoensurethatneitheritnoranyofitsagentsoffers,gives,solicitsoracceptsanyinducementwhichislikelysignificantlytoconflictwithanydutiesoftherecipientortherecipient’semployerowedtoclientsinconnectionwiththefirm’sexemptregulatedactivities.

material interestWhereafirmhasamaterialinterestinatransactiontobeenteredintowithorforaclientorarelationshipwhichgivesrisetoaconflictofinterestinrelationtosuchatransaction,thefirmmustnotknowinglyadviseinrelationtothattransactionunlessittakesreasonablestepstoensurefairtreatmentfortheclient.

arrangements with third partiesAfirmmustnotenterintoanysoftcommissionagreementwhereunderafirmwhichdealsinsecuritiesonanadvisorybasisreceivesgoodsorservicesinreturnforanassurancethatnotlessthanacertainamountofsuchbusinesswillbeputthroughorinthewayofanotherperson.

Afirmmayonlyacceptanappointmentasanotherperson’sappointedrepresentativewheretheappointingorganisationisitself,andatalltimescontinuestobe,freefromanyrestrictionwhichmayresultinthefirmbeingconstrainedorinducedtorecommendtoaclienttransactionsinsomeinvestmentsbutnotothers,withsomepersonsbutnotothers,orthroughtheagencyofsomepersonsbutnotothers,unlessconstrainedbylaw.

Afirmmayonlyadviseinrelationtothedisposalofpackagedproductsasanindependentintermediaryand,fortheavoidanceofdoubt,totheextentsuchactivitiesconstituteexemptregulatedactivities.

relations with clientsfair and clear communicationsAfirmmustavoidanyrepresentationtoaclientthatitisauthorisedundertheActorregulatedbytheFsAorthattheregulatoryprotectionsprovidedbytheActareavailable.Whereafirmisconductinginsurancemediationactivity,itisparticularlyimportantthattheclientunderstandsthatthefirm’sinclusionontheFsAregisterisnotthesameasbeingauthorisedundertheAct.

Afirmmaymakeacommunicationwithanotherpersonthatisdesignedtopromotetheprovisionofexemptregulatedactivitiesonlyifitcanshowthatitbelievesonreasonablegroundsthatthecommunicationisfairandnotmisleading.

Afirmmusttakereasonablestepstoensurethatanyagreement,writtencommunication,notificationorinformationthatitgivesorsendstoaclienttowhomitprovidesexemptregulatedactivitiesispresentedfairlyandclearly.

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Afirmmustensurethattheclientreceivessufficientinformationabouttherecommendedinvestmentsothathehasanadequatebasisonwhichtoacceptorrejecttherecommendations.Thefirmmustmakeclearthatitwillsupplytheclientwithmoredetailedinformationifheorshesorequires.

clients’ rightsAfirmmustnot,inanywrittencommunicationoragreement,seektoexcludeorrestrictanydutyorliabilitytoaclientthatithasundertheAct,orundertheregulatorysystem.

similarly,unlessitisreasonabletodosointhecircumstances,afirmmustnot,inanywrittencommunicationoragreement,seektoexcludeorrestrict:

•anyotherdutytoactwiththeskill,careanddiligencewhichisowedtoaclientinconnectionwiththeprovisiontohimorherofexemptregulatedactivities;or

•anyliabilityowedtoaclientforfailuretoexercisethedegreeofskill,careanddiligencewhichmayreasonablybeexpectedofitintheprovisionofexemptregulatedactivities.

Afirmmustnotseekunreasonablytorelyonanyprovisionseekingtoexcludeorrestrictanysuchdutyorliability.

chargesTheamountafirmchargesaclientfortheprovisionofexemptregulatedactivitiesmustnotbeunreasonableinthecircumstances.

client agreementsWhereafirmprovidesexemptregulatedactivitiestoaclient,thewrittenagreementwhichmustbeenteredintobeforeanybusinessisconductedmustsetoutinadequatedetailthebasisonwhichthoseservicesareprovidedandmustinclude,interalia,astatementofthefollowing:

1thefirm’snameandaddress;

2thatthefirmisregulatedintheconductofexemptregulatedactivitiesbyACCA(ifafirmmakesareferencetotheFsAanysuchstatementshouldnotleadtheclienttosupposethattheFsAhasdirectregulatoryresponsibilityforthatfirm);

3thenatureoftheregulatedactivitiesprovidedbythefirmandthefactthatthesearelimitedinscopeand,whereappropriate,thefactthatthefirmisusingtheservicesofapermittedthirdparty;

4wherethefirmprovidesexemptregulatedactivitiesotherthaninsurancemediationactivity,thatthefirmisnotanauthorisedperson;

5thattheclientwillnothaveaccesstoanycompensationschemeinrespectofthefirm’sservices;

6theclient’sinvestmentobjectives;

7anyrestrictionsontheinvestmentswhichmaybeacquiredorthattherearenorestrictions;

8thenatureofthecomplaintsandredressproceduresavailabletoclients;and

9thebasisonwhichthefirmistochargeforitsservices.

Wherethefirmprovidesinsurancemediationactivityservices,thewrittenagreementmustalsoprovidethefollowingstatementinawaythatisclear,fairandnotmisleadingandnolessprominentthananyotherinformationprovidedtotheclientatthesametime:

‘WearenotauthorisedbytheFinancialservicesAuthority.However,weareincludedontheregistermaintainedbytheFinancialservicesAuthoritysothatwecancarryoninsurancemediationactivity,whichisbroadlytheadvisingon,sellingandadministrationofinsurancecontracts.Thispartofourbusiness,includingarrangementsforcomplaintsorredressifsomethinggoeswrong,isregulatedbytheAssociationofCharteredCertifiedAccountants.TheregistercanbeaccessedviatheFsAwebsiteatwww.fsa.gov.uk

Theagreementmustalsostate:

1whetherthefirmhasaholding,directorindirect,representingmorethan10%ofthevotingrightsorofthecapitalinagiveninsuranceundertaking,and

2whetheragiveninsuranceundertakingorparentundertakingofagiveninsuranceundertakinghasaholding,directorotherwise,representingmorethan10%ofthevotingrightsorofthecapitalinthefirm.

Whereafirmactsasadisclosedagentforanamedclientwithorthroughapermittedthirdpartyorreliesupontheadviceofapermittedthirdpartyinactingfororadvisingaclient,thefirmmustinformthepermittedthirdpartyinwritingofthatfactandthataccordinglythepermittedthirdpartywillberesponsibletotheclientinrespectofitsactivitiesoradvice.

Whereafirmistreatingaclientasanexecution-onlyclientitmust:

a notifytheclientaccordinglyandmustobtainawrittenacknowledgementfromtheclient.Inaddition,writtenevidenceofspecificinstructionsfromexecution-onlyclientsmustbemade,includingwrittenconfirmationthattheclientdidnotseekorreceiveadvicefromthefirmregardingatransaction.Thetransactionmusthavebeenenteredintoontheclient’sexplicitinstructions;and

bhavereasonablyassessedandconcludedthattheclientcanbeexpectedtounderstandtherisksinvolvedinthetransaction.

Copiesofthewrittennotificationandacknowledgementandevidenceofinstructionsandassessmentreferredtointhisregulationarerequiredtoberetainedforsixyears.

cessation of businessWhereafirmwithdrawsfromprovidinganyexemptregulatedactivitiestoclients,thefirmmustensurethatanysuchbusinessthatisoutstandingisproperlycompletedoristransferredtoanotherfirm.Inaddition,wheretheinterestsofclientswouldbesignificantlyaffectedbythedeathorincapacityofanindividualwithinthefirm,thefirmmustmakearrangementstoprotecttheinterestsofthoseclientsinthatevent.

information about the firmAfirmmay,inallitsbusinessletters,noticesandotherpublicationswhichrelatetoitsexemptregulatedactivities,statethatitisregulatedtoconductexemptregulatedactivitiesbyACCA.Anysuchstatementshouldalsocomplywiththerequirementssetoutabove.

21practice information HanDBooK REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK

Business stationeryACCAhasagreedthefollowingwordingwiththeFsAthatfirmsmayuseonbusinessletters,noticesandotherpublications:

‘RegulatedforarangeofinvestmentbusinessactivitiesbytheAssociationofCharteredCertifiedAccountants’.

Thisisanoptionalstatement.

information about contracts of insuranceTheDPBRsalsoincludedetailedcommunicationrequirementsinrespectoffirmscarryingoninsurancemediationactivity,includingthemethodofcommunicating.

compliance procedurescomplianceAfirmmusttakereasonablesteps,includingtheestablishmentandmaintenanceofprocedures,toensurethatitsofficersandemployeesactinconformitywithallregulationsapplicabletotheconductofexemptregulatedactivities.

recordsAfirmmustensurethatsufficientinformationisrecordedandretainedaboutitsexemptregulatedactivitiesasisnecessaryfortheproperconductofthatbusinessandtoenableittodemonstratecompliancewiththeregulatorysystem,includingbutnotlimitedtorecords:

•ofthereceiptofincomefromtheclientinrespectofexemptregulatedactivities;

•ofthereceiptofcommissions,oranyotherpecuniaryrewardoradvantage,fromproductprovidersoranythirdparties,whichareadequatetodemonstratethatthefirmhasaccountedtotheclientforthecommissionsorotherpecuniaryrewardoradvantage;

•whichareadequatetodemonstratethatthefirmhascarriedononlyexemptregulatedactivities;and

•ofcomplaintsreceivedandactiontaken.

Anyrecordrequiredtobeproducedbythisregulationshouldberetainedforaminimumofsixyears.

complaintsAfirmmusthaveprocedurestoensure:

•theproperhandlingofcomplaintsfromclientsandthirdpartiesrelevanttoitscompliancewiththeregulatorysystem;

•thatanyappropriateremedialactiononthosecomplaintsispromptlytaken;and

•wherethecomplaintisnotpromptlyremedied,thattheclientisadvisedofanyfurtheravenueforcomplaintavailabletohimorherundertheregulatorysystem.

Thoseproceduresmustincludeprovisionstoensurethat:

• complaintsareacknowledgedwithinareasonabletimeoftheirbeingreceivedandinanyeventwithin14days;

•whereacomplainthasbeenmadeorally,theletterofacknowledgementstatesthemember’sunderstandingastothenatureofthecomplaintbeingmadeandinvitesthecomplainanttoconfirminwritingtheaccuracyofthatstatement;and

•complaintsareinvestigatedbyapersonofsufficientexperience,seniorityandcompetencewho,wherepossible,wasnotdirectlyinvolvedintheparticularactoromissiongivingrisetothecomplaint.

continuityFirmsshallenterintoacontinuityagreementinaccordancewithregulation11ofTheCharteredCertifiedAccountants’GlobalPractisingRegulations2003.

notificationAfirmthatbecomesanauthorisedpersontoconductanyregulatedactivitiesorbecomesanappointedrepresentativeofanotherorganisationshouldnotifyACCAimmediatelyinwritingofthischangeofstatus.

oVerSeaS BrancHeS or officeS anD JUriSDictionSTheFinancialservicesandMarketsAct2000regulatesinvestmentbusinessconductedintheUK.FirmswhichhaveabranchorofficeoutsidetheUK,ChannelIslandsandIsleofManareeligibletoundertakeexemptregulatedactivitiesfromtheUKbranchoroffice.

irish investment intermediaries act 1995AfirmwishingtoundertakeactivitieswithinthescopeoftheIrishInvestmentIntermediariesAct1995mustbeappropriatelyauthorisedbyanApprovedProfessionalBody.ACCAisabletoauthorisefirmsthroughthemechanismofaninvestmentbusinesscertificate(Ireland).Pleaseseesection4forfurtherinformation.

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appenDiX 1exempt regulated activitiesTheactivitiesthatACCAregulatedfirmsareabletocarryoutundertheDPBRsaresetoutinregulation4(1).Thisregulationisreproducedbelow.

1 exempt regulated activitiessubjecttoregulations4(2)and4(3),allfirmsthatareeligibletoconductregulatedactivitiesunderregulation3maycarryon,oragreetocarryon,anyoftheactivitiessetoutinthisregulation(butnootheractivityconstitutingregulatedactivities).

Inrelationtodesignatedinvestments,contractsoflong-terminsurance,contractsoflong-termcareinsurance,regulatedmortgagecontracts,regulatedhomereversionplansandregulatedhomepurchaseplans,firmsmaycarryon:

a dealingasagentininvestmentswithinarticle21totheRegulatedActivitiesOrder:

i asdisclosedagentforanamedclientwherethetransactioniscarriedoutwithorthroughapermittedthirdparty;or

ii wheretheclientisanexecution-onlyclientexceptinrespectofpensiontransferoropt-outbusinessandpensionfundwithdrawals;or

bmakingarrangementswithinarticles25(investmentsdeals),25A(regulatedmortgagecontracts),25B(regulatedhomereversionplans)and25C(regulatedhomepurchaseplans)oftheRegulatedActivitiesOrderwhere:

i thefirmactsasdisclosedagentforanamedclientandthearrangementsarecarriedoutwithorthroughapermittedthirdparty;or

ii thearrangementsaremadeinconsequenceofadvicegiveninrelationtheretobyapermittedthirdpartywhichifobtainedbythefirmhasbeenobtainedbyitactingasdisclosedagentforanamedclient;or

iiitheclientisanexecution-onlyclientexceptinrespectofpensiontransferoropt-outbusinessandpensionfundwithdrawals;or

ivthearrangementsareforthedisposalofapackagedproductbyorforapersonalrepresentative;or

v thetransactioninvolvestheacquisitionordisposalofaninvestmentbyacceptinganofferorrespondingtoaninvitationmadetothepublicortotheholdersofsecuritiesofanybodycorporateoranyclassthereoforbyexercisinganyrightconferredbyaninvestmenttoacquire,disposeoforconvertaninvestment;or

c managinginvestmentswithinarticle37oftheRegulatedActivitiesOrderwhere:

i thatactivityisperformedonanon-discretionarybasis;

ii thefirmoranofficeroremployeeofthefirmholdsatrusteeappointmentandactsonadiscretionarybasis;and

aanoremunerationisreceivedforthediscretionarymanagementoftheinvestmentsinadditiontotheremunerationwhichthefirmortheofficeroremployeeofitmayreceiveinconnectionwiththeiractingpursuanttothetrusteeappointment;or

bbanydecisionstobuy,sell,subscribefororunderwriteaparticularinvestmentaretakeninaccordancewiththeadviceofapermittedthirdpartywhich,ifobtainedbythefirm,hasbeenobtainedbyhimorithavingdisclosedthebasisonwhichheoritisacting;or

dadvisingwithinarticle53(investments),article53A(regulatedmortgagecontracts),article53B(regulatedhomereversionplans)andarticle53C(regulatedhomepurchaseplansoftheRegulatedActivitiesOrderwhere:

i suchadviceconstitutestheadviceofapermittedthirdpartyand,ifobtainedbythefirm,hasbeenobtainedbyitactingasdisclosedagentforanamedclient;or

ii inthecaseofinvestmentstheadvicedoesnotrelatetolistedsecurities;or

iiisuchadviceconcernsthedisposalofapackagedproductforapersonalrepresentative;or

ivsuchadviceconstitutesarecommendationnottobuyorsubscribeforinvestments,orarecommendationtovarythetermsof,nottobuyornottosubscribeforregulatedmortgagecontracts,regulatedhomereversionplansandregulatedhomepurchaseplans,orrelatestothedisposalofinvestmentsotherthanrightsunderapersonalpensionschemeorrelatestotheacquisitionofinvestmentsissuedbyanunquotedcompany;or

v suchadviceconstitutesadvicetoclientstoseekfurtherinformationorclarificationfromtheauthorisedperson;or

visuchadviceconstitutesadvicetoclientsonthemeritsofadvicegivenbyanappropriatelyauthorisedorexemptpersonprovidednorecommendationismadethattheclientpurchasesaparticularinvestmentorregulatedmortgagecontract,regulatedhomereversionplansandregulatedhomepurchaseplans,otherthanthatrecommendedbytheauthorisedorexemptperson;or

e theprovisionofanydesignatedinvestmentbusinessto:

i anissuer,holderorownerofinvestmentswithregardtotheoffer,issue,underwriting,repurchase,exchangeorredemptionof,orthevariationofthetermsof,theinvestments,oranyrelatedmatter;or

ii anycompanyorpartnershipwhichrelatestothemannerinwhich,orthetermsonwhich,orthepersonsbywhom,anybusiness,activitiesorundertakingsrelatingtoit,oranyassociate,aretobefinanced,structured,managed,controlled,regulatedorreportedupon;or

iiianycompanyinconnectionwithaproposedoractualtake-overbyoronbehalfofthatcompanyoritsholdingcompanyorsubsidiaryoramerger,de-merger,re-organizationorreconstructioninvolvinganyinvestmentsissuedbysuchacompany;or

ivanyshareholderorprospectiveshareholderofacompanyestablishedortobeestablishedforthepurposeofeffectingatake-over.


Inrelationtocontractsofinsuranceotherthancontractsoflong-terminsuranceandcontractsoflong-termcareinsurance,firmsmaycarryonthefollowinginsurancemediationactivitiesprovidedtheyhavefirstcompliedwithregulation4(3):

f dealingasagentinthemannerspecifiedbyarticle21oftheRegulatedActivitiesOrder;or

gmakingarrangementsinthemannerspecifiedbyarticle25oftheRegulatedActivitiesOrder;or

hassistingintheadministrationandperformanceofcontractsofinsurancewithinarticle39AoftheRegulatedActivitiesOrder;or

i advisinginthemannerspecifiedbyarticle53oftheRegulatedActivitiesOrder.

appenDiX 2regulation 4(2) of the DpBrs

2 prohibited activitiesNofirmmaycarryoutanyactivitythatrelatesto:

a acceptingdepositsofakindspecifiedbyarticle5oftheRegulatedActivitiesOrder;

beffectingandcarryingoutcontractsofinsuranceasspecifiedbyarticle10oftheRegulatedActivitiesOrder;

c dealingasprincipalininvestmentswithinthemeaningofarticle14oftheRegulatedActivitiesOrder;

destablishing,operatingorwindingupacollectiveinvestmentscheme;actasatrusteeofanauthorisedunittrustschemeoractasthedepositoryorsoledirectorofanopen-endedinvestmentcompanyasspecifiedwithinarticle51oftheRegulatedActivitiesOrder;

e establishing,operatingorwindingupapersonalpensionschemeorstakeholderpensionschemewithinarticle52oftheRegulatedActivitiesOrder;

f recommendationstobuyorsubscribeforsecuritiesorcontractuallybasedinvestmentswhichareadmittedtodealingonanexchangeorothermarketwithinarticle53oftheRegulatedActivitiesOrder;

g advisingonthemeritsofenteringintoaregulatedmortgagecontractwithinarticle53A,aregulatedhomereversionplanwithinarticle53Bandaregulatedhomepurchaseplanwithinarticle53CoftheRegulatedActivitiesOrder;

hadvisingonthemeritsofenteringintoorvaryingthetermsofacontractoflong-terminsurance,acontractoflong-termcareinsuranceorotherinsurance-basedinvestmentinthemannerspecifiedbyarticle53oftheRegulatedActivitiesOrder;

i managingtheunderwritingcapacityofaLloyd’ssyndicateasamanagingagentatLloyd’sasspecifiedunderarticle57oftheRegulatedActivitiesOrder;

j enteringasproviderintoafuneralplancontractwithinarticle59oftheRegulatedActivitiesOrder;

k enteringintooradministeringaregulatedmortgagecontract,regulatedhomereversionplansandregulatedhomepurchaseplanswithinarticles61,63Band63FoftheRegulatedActivitiesOrder;

l advisingapersontobecomeamemberofaparticularLloyd’ssyndicate;

mholding,orreceiving,anymoneybelongingtoaclientinthecourseofcarryingonexemptregulatedactivitiesforaclientwhichisnotimmediatelydueandpayableondemandtothefirmforitsownaccount;

nactingasapersonalpensionschemeorstakeholderpensionschememanager;

omanaginginvestmentsasaplanmanagerofaPEPoranIsA;

pcarryingontheactivityofsafeguardingandadministeringassetswithinarticle40oftheRegulatedActivitiesOrder;

qcarryingonanyinvestmentactivityrelatingtoderivatives;

r promoting,issuingorapprovinganyinvestmentadvertisements;

s undertakinganybusinessinvolvingpensiontransfersandpensionfundwithdrawals;

t enteringintoabrokerfundsarrangement;

u sponsoringoradvisingonissuesofsecuritiesonthestockExchange,AlternativeInvestmentMarket(AIM)orOffExchange(OFEX).

Inadditiontotheprohibitiononfirmsfromcarryingoutanyoftheaboveactivities,firmsmaynotagreetocarryonanyactivitycontainedinregulation4(2).

Thislistwillbereviewedfromtimetotimeandwillberevisedasnecessary.


3 Special requirements for firms intending to carry on, or agreeing to carry on, insurance mediation activityAfirmwishingtocarryoninsurancemediationactivity(ietheactivitiessetoutinregulations4(1)(a),(b)and(d)inrelationtoinsurance-basedinvestmentsandtheactivitiessetoutinregulations4(1)(f)to(i))must:

a effectprofessionalindemnityinsurancewithminimumlimitsofindemnityequivalent(atthetimethepolicyiseffectedorrenewed)to1,120,200eurosinrelationtoeachandeveryclaimand1,680,300eurosintheaggregateperyearforallclaims,exceptwheretheactivitycomprisesprovidinginformationtoapolicyholderorpotentialpolicyholderorapermittedthirdpartyinthecontextofmakingarrangementswithaviewtotransactionsinthemannerspecifiedbyarticle25(2)oftheRegulatedActivitiesOrder;

bwherethefirmisnotasolepractitioner,nominateanindividualorindividualswithinthemanagementofthefirmwhowillberesponsibleforsuchactivities;

REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK

24

c ensurethatareasonableproportionofthepersonswithinthemanagementstructureofthefirmwhoareresponsibleforinsurancemediationactivityandallotherpersonsdirectlyinvolvedininsurancemediationactivitydemonstratetheknowledgeandabilitynecessaryfortheperformanceoftheirduties;

dwherethefirmintendstoestablishabranchin,orprovidecrossborderservicesto,anotherstateoftheEuropeanEconomicArea(EEA),satisfytheconditionsinparagraph19or20(asappropriate)ofPartIIIofschedule3totheAct;

e satisfytheconditionsthatnopersonwithinthemanagementstructureofthefirmorwithinthestaffdirectlyinvolvedininsurancemediationactivityisanundischargedbankruptorhasacriminalconvictionforanyseriousoffencesrelatingtofinancialactivitiesorcrimesagainstproperty;

f registerwiththeAssociationforinsurancemediationactivity;and

g beforecarryingonsuchactivities,ensurethatthefollowingdetailsappearontheFsARegisterandhavebeenupdated,asinformedbythefirmtotheAssociation:

i thefirm’snameandaddress;

ii detailsoftheindividualsreferredtowithinregulation4(3)(b);and

iiiwhererelevant,eachEEAstateinwhichthefirmhasestablishedabranchorisprovidingcrossborderservicesundertheInsuranceMediationDirective.

AfirmwhichundertakesinsurancemediationactivityandwhosedetailsdonotappearontheFsARegisterwillbecommittingacriminaloffence.WhiletheAssociationwillpassafirm’sdetailstotheFsAaspartofitsregulatoryobligations,itisthefirm’sresponsibilitytoensurethatitsdetailsappearontheFsARegisterandarecorrectanduptodate.


4 activities which do not constitute insurance mediation activityThefollowingactivitiesdonotconstituteinsurancemediationactivityand,assuch,firmsarefreetocarryonsuchactivitiesastheydonotfallwithintheDesignatedProfessionalBodyRegulations:

a advisingingeneraltermsontheneedfororlevelofinsurancecoverorprovidinginformationtothepolicyholderorpotentialpolicyholderofageneralnatureoninsuranceproducts,providedthatnorecommendationismadeofparticularcontractsofinsurance,productprovidersorpermittedthirdpartiesotherthanindependentfinancialadvisers;

bcarryingoninsurancemediationactivitywhereallofthefollowingconditionsaremet:

i theprincipalactivityofthepersonisotherthaninsurancemediationactivity;

ii thecontractofinsuranceisnotacontractoflong-terminsurance;

iiithecontractofinsurancehasatotalduration(orwouldhaveatotaldurationwereanyrighttorenewconferredbythecontractexercised)offiveyearsorless;

ivthecontractofinsurancehasanannualpremium(or,wherethepremiumispaidotherwisethanbywayofannualpremium,theequivalentofanannualpremium)of500eurosorless,ortheequivalentamountinothercurrency;

v theinsurancecoversnon-motorgoodsortravelinsurance;

vithecontractofinsurancedoesnotcoveranyliabilityrisks(except,inthecaseofacontractwhichcoverstravelrisks,wherethatcoverisancillarytothemaincoverprovidedbythecontract);

viitheinsuranceiscomplementarytothenon-motorgoodsorservicesuppliedbyanyprovider;and

viiithecontractofinsuranceisofsuchanaturethattheonlyinformationneededisthecoverprovided;

c carryingoninsurancemediationactivitynotbywayofbusiness.The‘bywayofbusiness’testcomprisestwoelements:

i whetherthepersonreceivesremunerationfortheactivity(whethermonetary,non-monetaryorintheformofanexpectationofeconomicbenefit);

ii whetherthepersonpursuestheactivitywithadegreeofregularityorforcommercialpurposes.


4 applying for a firm’s investment business certificate (ireland)

ACCAwasgrantedfullApprovedProfessionalBody(APB)status,undertheInvestmentIntermediariesAct1995(IIA),bytheCentralBankofIreland(CBI)on11December1998.

introDUctionAPBstatusenablesACCAtoauthorise,throughtheissueofanACCAfirm’sinvestmentbusinesscertificate(Ireland),certainpractisingfirmstoconductspecificrestrictedinvestmentactivities.

ThelegislationreferredtointhissectionisthatapplicableintheRepublicofIreland.

AnapplicationformcanbefoundonACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation(tel:+44(0)1415344175).

Do YoU neeD an inVeStment BUSineSS certificate (ireLanD)?TheCharteredCertifiedAccountants’IrishInvestmentBusinessRegulations1999asamended(IIBRs)laydowntheconditionsfortheissueof,andtheongoingrequirementsforholding,investmentbusinesscertificates(Ireland),andprovidethebasisofACCA’scompliancewiththeIIA.TheIIBRsareincludedintheACCA Rulebook.

UnderthetermsoftheIIA,itisanoffencetoprovideinvestmentbusinessservicesorinvestmentadviceinIrelandwithoutauthorisation.TheCBIoverseestheregulatorysystemundertheIIA(previouslytheFinancialRegulator).However,italsorecognisesotherregulatorybodiesanddelegatesresponsibilitytothemforauthorisationandregulationoftheirmemberfirms.

IfyouarenotalreadyauthorisedbyACCAordirectlyauthorisedbytheCBI(asanInvestmentBusinessFirm,MultiAgencyIntermediaryorAuthorisedAdvisor),youmayneedtoseekauthorisationdependingontheactivitiesthatyourfirmcarriesout.ACCAofferstwodifferentcategoriesofauthorisationdependingontheactivitiesthefirmisgoingtoundertake.Thecategoryofauthorisationwillalsoimpactonthecompensationarrangementsthatapplytothefirm.

category B authorisationYourfirmwillneedcategoryBauthorisationwhereitcarriesoninvestmentbusinessservicesorinvestmentadvice(definedbelow)whichmayinclude:

•receivingortransmittingordersincertaininvestmentorinsuranceproducts;oractingasadepositbroker;or

•referringaclienttoathirdpartyprovidinginvestmentbusinessservices.

AcategoryBfirmmaytransmitordersonlytocertainproductproducersinthecourseofprovidingtheaboveservices.

category a authorisationInadditiontotheactivitiescarriedoutbyacategoryBauthorisedfirm,categoryAauthorisedfirmscanexecuteordersinrelationtoinvestmentinstruments(definedbelowunder‘ProductscoveredbytheIIA’),otherthanforownaccount.Inaddition,thefirmwouldbeabletopromotesinglecompanyBEsschemesorafilmcompany.

NeithercategoryBnorcategoryAfirmsmayholdclients’fundsorsecurities,butmayacceptnon-negotiablechequesorsimilarinstrumentsmadepayabletotheproductprovidersforthepurposesofthereceiptandtransmissionoforders.

Ifyourfirmintendstocarryonanyoftheabovelistedactivities,itwillneedtoapplyforaninvestmentbusinesscertificate(Ireland),categoryAorcategoryB.

IfyourfirmcarriesonanyoftheabovelistedactivitieswithoutbeingauthorisedbyACCA,anotherAPBordirectlybytheCBI,yourfirmisperformingaprohibitedactivityandisinbreachofsection9(1)oftheIIA.

InviewofthecomplexityofthelegislationandthebroadrangeofactivitiesthatfallwithinthedefinitionofinvestmentbusinessservicesundertheIIA,ACCArecommendsthatalleligiblefirmsareauthorised.

APPLYINGFORAFIRM’sINVEsTMENTBUsINEssCERTIFICATE(IRELAND)

26

Theeligibilitycriteriaforinvestmentbusinesscertificates(Ireland)aresetoutlaterinthissection.

inVeStment BUSineSS SerViceS coVereD BY tHe iia/inVeStment aDViceproducts covered by the iiaTheActdefinesinvestmentinstrumentsverybroadly.FulldetailsofwhatcomesunderthedefinitionofinvestmentinstrumentscanbefoundinRegulation4(2)oftheIIBRs,which(asaresultoftheenactmentoftheInsuranceAct2000)includesinsurancepoliciesincludinglife,pension,endowmentsandgeneralinsurancepoliciessuchashouseandmotorvehicle.

products not covered by the iiaInvestmentsinpropertyareoutsidethescopeoftheIIA,unlesstheinvestmentinvolvessharesinaproperty-owningcompany.

ThereisprovisionintheIIAforadditionalinstrumentstobeaddedtothelistofproductsthatarewithinitsscopebyministerialorder.Non-authorisedfirmsshould,therefore,regularlycheckthatparticularproductsthattheyareadvisingon,orarranging,havenotcomewithinthescopeoftheAct.

investment business servicesTheIIAliststheactivitiesthatconstituteinvestmentbusinessservices.ACCAisabletoauthorisefouroftheseactivities:

•receivingandtransmittingordersforinvestmentinstruments•executingordersonbehalfofinvestors•actingasadepositbroker•undertakinginsurancemediationactivities.

ACCAcannotauthorisefirmstocarryouttheremainingseveninvestmentbusinessservices:

•dealinginoneormoreinvestmentinstrumentsforownaccount

•managingportfoliosofinvestmentinstrumentsordepositsonadiscretionarybasis

•underwritinginrespectofissuesofoneormoreinvestmentinstrumentsortheplacingofsuchissuesorboth

•actingasadepositagent•administeringcollectiveinvestmentschemes•carryingoutcustodialoperations•actingasamanagerofadesignatedinvestmentfund.

Orthefollowing:

•carryingoutanyactivityrelatingtoderivatives•carryingonanyotheractivityconstitutingtheprovisionofinvestmentbusinessservicesorinvestmentadvicewithinthemeaningofsection2oftheIIAotherthananactivityfallingwithinIIBR4(2)

•holdingorreceivinganymoneybelongingtoaclientinthecourseofcarryingoninvestmentbusinessservicesforaclientwhichisnotimmediatelydueandpayableondemandtothefirmforitsownaccount.

AnyACCAfirmsthatundertaketheseactivitiesshouldseekauthorisationdirectlyfromtheCBI.

investment adviceACCAisabletoauthorisefirmstogiveinvestmentadvice.Thisisdefinedasthegivingof,orofferingoragreeingtogive,toanyperson,adviceonthepurchasing,selling,orsubscribingforaninvestmentinstrument,oronthemakingofadepositorontheexercisingofanyrightconferredbyaninvestmentinstrumenttoacquire,disposeof,orconvertaninvestmentinstrumentordeposit.Thedefinitionalsoincludesthegivingof,orofferingoragreeingtogive,toanyperson,adviceonchoiceofapersonprovidinginvestmentbusinessservices.ThisincludesadviceonBEsinvestmentsandfilminvestments.

Advicegiventoundertakingsoncapitalstructure,industrialstrategyandrelatedmattersandadvicerelatingtomergersandthepurchaseorsaleofundertakingsarenotincludedasinvestmentadvice.

General exemptionTheIIAexemptsthefollowingfromthedefinitionofinvestmentadvice:

‘Advicegivenbypersonsinthecourseofthecarryingonofanyprofessionorbusiness...wherethegivingofsuchadvicearisesfromotheradvicegiveninthecourseofcarryingonthatprofession...andthatadviceisnotremuneratedseparately....’Althoughthe‘arisesfrom’testisreasonablyeasytomeet,the‘remuneratedseparately’aspectismoredifficult.Accountantsareseenasbeingpaidonatimebasis.Ifyoudonotmentionanyinvestmentadviceonyourfeenote,itmaynotmean,legally,thatyouwerenotpaidforthatadvice.

conDitionS for tHe iSSUe of an inVeStment BUSineSS certificate (ireLanD)TheIIBRslaydowntheconditionsforthegranting,andsubsequentrenewal,ofinvestmentbusinesscertificates(Ireland).Withinpartnerships/incorporatedfirms,anominatedcontactpartner/director(whomustbeamemberofACCA)willhaveoverallresponsibilityforthefirm’scompliancewiththeconditionsdetailedbelow,andheorshemuststatehisorherfirm’scompliancewiththeserequirementsintherenewalform.

eligibilityThedetailedrequirementsaregiveninregulation3oftheIIBRs.

Asolepractitionershallbeeligibleforaninvestmentbusinesscertificate(Ireland)ifheorsheisamemberofACCA,ifheorsheholdsapractisingcertificate,andifhisorhermainbusinessisthepublicpracticeofaccountancy.Thefirmmustbesolventandinaddition,forcategoryAauthorisation,itmustholdminimumnetbusinessassetsof€10,000.

Apartnershipwhosemainbusinessisthepublicpracticeofaccountancyiseligibleforaninvestmentbusinesscertificate(Ireland)ifitspartnersareeither:

•membersofACCA,ormembersofotherAPBs(suchasCharteredAccountantsIreland),or

•otherwiseentitledtopractiseaccountancyandregulatedbyanotherprofessionalbody.

27practice information HanDBooK APPLYINGFORAFIRM’sINVEsTMENTBUsINEssCERTIFICATE(IRELAND)

Inaddition:

•allpartnerswhoarenotmembersofACCAmustgiveundertakingstoabidebyACCA’sregulations;

•atleastoneofthepartnersinthefirmmustbeanACCAmember;

•thosepartnerswhoarenotmembersofACCAorofanotherAPBshouldnotformamajorityofthepartnersofthefirm;

•allpartnerswhoareACCAmembersmustholdpractisingcertificatesvalidinIreland,andeachpartnerwhoisnotanACCAmembermustholdsuchotherqualificationasisdeemedadequatebytheAdmissionsandLicensingCommittee;and

•thepartnershipmustbesolventandinaddition,forcategoryAauthorisation,itmustholdminimumnetbusinessassetsof€10,000.

Acompanywhichhasasitsmainbusinessthepublicpracticeofaccountancywillbeeligibleforaninvestmentbusinesscertificate(Ireland)ifitsdirectorsandcontrollersareeither:

•membersofACCA,ormembersofotherAPBs(suchasCharteredAccountantsIreland),or

•otherwiseentitledtopractiseaccountancyandregulatedbyanotherprofessionalbody.

Inaddition:

•alldirectorsandcontrollerswhoarenotmembersofACCAmustgiveundertakingstoabidebyACCA’sregulations;

•atleastoneofthedirectorsinthefirmmustbeanACCAmember;

•thosedirectorswhoarenotmembersofACCAorofanotherAPBshouldnotformamajorityoftheboardofdirectors;

•alldirectorswhoareACCAmembersmustholdpractising certificatesvalidinIreland,andeachdirectorwhoisnotan ACCAmembermustholdsuchotherqualificationasisdeemed adequatebytheAdmissionsandLicensingCommittee;

•thecompanymustbesolvent,andinaddition,forcategoryAauthorisation,itmustholdminimumnetbusinessassetsof€10,000.

Acontrollerisapersonwhoeitheraloneorwithanyassociatescontrols15%ormoreoftherightstovoteonthemajorityofmattersatgeneralmeetings.

investment business limitsACCAisonlyabletoauthorisefirmswhosemainbusinessisthepublicpracticeofaccountancy.Where20%ormoreofafirm’stotalturnoveronanannualbasisderivesfrominvestmentbusinessservicesorinvestmentadvice,thisfactmustbenotifiedtoACCAwhowillreferthemattertotheCBIforitsconsideration.Inadditioninvestmentbusinessservicesand/orinvestmentadvicemustbeprovidedinanincidentalmanner,notisolatedfromtheotheractivitiesofthefirminamannerwhichwouldsuggestthatitisaseparatebusiness.

compensation scheme arrangementsDependingontheircategoryofauthorisation,firmsmustmakecontributionstotheInvestorCompensationCompanyLimited(ICC).ThiscompanyisestablishedundertheInvestorCompensationAct1998andisindependentofACCA.ThecompensationlevyforacategoryBfirmisdeterminedbythefirm’sincomeandthelevyforacategoryAfirmisdeterminedbythenumberofeligibleclients.FirmsshouldcontactICCfordetailsofthecontributionrequiredat:TheInvestorCompensationCompanyLimited,c/oTheCentralBankofIreland,POBox11517,spencerDock,NorthWallQuay,Dublin1.Tel:+353(0)12244955.Furtherdetailsaboutthecurrentcontributionratescanalsobefoundatwww.investorcompensation.ie/publications.php

minimum competency requirementsTheminimumcompetencyrequirementswerefirstpublishedon25July2006.Theseintroducedacompetencyframework,designedtoestablishminimumstandardsforregulatedentities.Firmsarerequiredtoensurethatindividualswhoprovideadviceorwhoundertakecertainspecifiedactivitiesontheirbehalfacquirethecompetenciessetoutintherequirements.

Therequirementswerereviewedandupdatedduring2011.ThenewMinimumCompetencyCode2011cameintoeffecton1December2011,andisavailableontheCBIwebsiteat http://www.centralbank.ie/regulation/processes/minimum-competency-req/pages/default.aspx

professional indemnity insuranceAfirmwishingtocarryoninsurancemediationactivityinIrelandmustholdprofessionalindemnityinsurance(PII)inaccordancewiththerequirementsoftheEuropeanCommunities(InsuranceMediation)Regulations2005.Currently,firmsundertakinginsurancemediationworkmustholdatleast1,000,000eurosinrelationtoeachandeveryclaimwithinacalendaryearand1,500,000eurosinaggregate.TheseminimumPIIlimitsaresubjecttochangefromtimetotimeandmembersmustensurethattheyholdtheappropriatelevelofcoveratthetimethepolicyiseffectedorrenewed.

monitoringACCAwillmonitorandenforceitsbye-lawsandregulationsbyanalysingpractitioners’returnsandcarryingoutmonitoringvisits.Afirstmonitoringvisitshouldtakeplacewithinthreeyears.Afive-yearmonitoringcyclewillbeimplementedfollowingthisinitialvisit.Visitsmaybemorefrequent,however,asaresultofcomplaintsorasaresultofevidenceofnon-complianceatafirstvisit.

DescriptionsAuthorisedfirmsmustincludethefollowingstatementontheirbusinessstationery:

‘AuthorisedtoundertakeinvestmentbusinessservicesinIrelandbytheAssociationofCharteredCertifiedAccountants’.

Firmsholdinginvestmentbusinesscertificates(Ireland)arerequiredtocomplywithbasicrequirementsof‘goodpractice’aslaidoutinACCA’sIIBRs(eg‘knowyourclient’).

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GUiDe to tHe proViSion of inVeStment BUSineSS SerViceS anD inVeStment aDVice anD compLiance WitH acca’S iriSH inVeStment BUSineSS reGULationSACCA’sIIBRsaredesignedtoprotectboththeinterestsofclientsandthepractisingaccountant.Theruleswillnotinanywayimpingeontheactivitiesofapracticethatisprovidinggoodprofessionalinvestmentadvice,otherthantoimposeanobligationtodocumenttheworkperformed.

Therulesandguidanceonexpectedgoodpracticearesummarisedbelow.However,ifyouaregoingtoundertakeIIAbusiness,youshouldreferdirectlytotheIIBRs,asthedetailhereisnotsufficienttoensurefullcompliance,andfailuretoimplementcertainoftheruleswillconstituteacriminaloffenceundertheIIA.

client moneyACCA’sIIBRsdonotallowpracticestohandleinvestmentbusinessclientmoney.Firmsmaystilldealwithclienttaxpayments,etcthroughtheirclientbankaccountbut,wherethefundsaretobeusedforaninvestment,firmsmaynotchannelthemthroughtheirpractices.Clientsshouldmaketheirchequesouttotheproductprovidersdirectly.

Basic requirements to undertake investment businessAllfirmsinvolvedinprovidinginvestmentbusinessadvicemustensurethattheyhavethefollowingproceduresinplace:

compliance systemsThefirm’spersonnelshouldbemadeawareoftheactivitiesthatfallwithinthescopeoftheIIA.PoliciesandprocedureswillhavetobeimplementedwithrespecttowhointhefirmmayprovideIIAadvice.standarddocumentationfor‘knowyourclient’and‘clientagreements’willneedtobedrafted.Asystemfordealingwithclientcomplaintsandasystemoffilingandsafeguardingclientrecordswillneedtobeimplemented.ThefirmwillalsoneedtoensurethatitsrecordsaresufficienttodemonstratecompliancewiththeIIBRsintheeventofamonitoringvisit.

Know your clientWhatdoesyourclientwant,andwhatneedscanyouidentifythattheclientmayhaveoverlooked?Youwillneedtoundertakeafactfindwiththeclienttoidentifytheseneeds.Afactfindisaquestionandanswerprocedure,usingreasonablystandardquestions,toidentifyaclient’scurrentfinancialpositionandfuturefinancialaspirations.

Ataxandcorrespondencefilereviewarenotsufficienttoidentifytheseneedsasinmanycasestheclientmaynotevenknowthatheorshehasaneeduntilitistoolatetoplananything–forexample,payingforprivateeducationforchildrenortheneedforlifeinsuranceorpensionplanning.

someoftheseneedsdonotfallwithinthescopeoftheIIA.However,theywillstillneedtobeidentifiedtoensurethattheIIAproductisthemostsuitable.

Suitability or best adviceThepractitionershouldidentifythemostsuitableproductonthemarkettomeettheneedsidentifiedduringthefactfind.Thepractitionerneedstoidentifyspecificfeaturesthatwillsuittheclient,andweighuponeproductagainstanother.Forexample,a

unit-trust-basedproductmaynotbeassuitableasa‘withprofit’productforariskaverseclient.Youmustmatchyourclient’sneedstotheactualproductoffered.

risk warningsAllinvestmentscarrysomerisk,evenbluechipbankdeposits.Itisimportantthataclientunderstandsthenatureoftheriskundertakenandconfirmsthisinwriting.

relations with clientsYoumustprovideyourclientwiththefollowingdocuments:•writtenclientagreement•keyfeatures•reasonwhyletter•post-saleinformation.

Key featuresThisshouldincludeessentialproductfeaturesthattheclientneedstounderstand,detailsofthespecificclient‘needs’metbytheproduct,clientcontributionsandexpectedreturn.Keyfeaturesshouldalsoincludedetailsoftotalchargesandtheamountofcommissionyouearn.Inpractice,theproductprovidercanprovidethisinformationinbookletform.Thisshouldbesenttotheclientpriortotheclientagreeingtobuytheparticularproduct.

reason why letterThislettershouldbesenttotheclientexplainingthereasonwhyyouchoseaparticularproduct.Itshouldbeclient-specificandcorrespondwiththedetailsnotedduringyourfactfind.Forexample,youmightpointoutthattheparticulartrackerbondwaschosenbecauseitisbasedonbluechipstocksonlyandis,therefore,mediumrisk–aspecificrequirementthattheclientidentifiedduringthefactfind.

post-sale informationThiscontainssimilarinformationtothekeyfeaturesdocument,butconfirmstheproductpurchasedandcancellationrights,whilereinforcinganyriskwarnings.

Best executionThisrequiresthepractitionertoobtainproductsatthebestpossibleprice.Itusuallyrefersonlytoproductsthatfluctuateonaregularbasis,suchasstocksandsharesorunitsinacollectiveinvestmentscheme.Thisisusuallyachievedthroughtimelyexecution.Onceafirmhasagreedtoeffectatransactionfortheclient,itmustdosoassoonasreasonablypracticable.

DocumentationThepractitionerwillneedtodocumenttheentireprocessinsufficientdetailtodemonstratecompliancewiththeIIBRs.Inparticular,thereareadditionaldocumentaryrequirementsattachingtocertaintypesofproducts,suchaslifeassuranceandpensionspolicies,PersonalRetirementsavingsAccountsandcollectiveinvestmentschemes.Documentationiskeytothewholeprocess.Mostpractitionersknowtheirclientsextremelywellandsomightbetemptedtocompleteafactfindformwithlittleornoassistancefromtheclient.However,eveninthesesituationsmanyimportantdetailsmaynotbeknown,suchasexistingpolicies,longandshort-termfutureplans,retirementaspirations,andplansforchildren’seducation.Itisunlikelythatyouwillbeawareofanyimpendingmaritalseparationorplanstobuildanewhouse,andaformalfactfindshouldidentifyanyomissions.

29practice information HanDBooK APPLYINGFORAFIRM’sINVEsTMENTBUsINEssCERTIFICATE(IRELAND)

Using‘keyfeatures’and‘reasonwhy’lettersinformstheclientofwhattheyaregetting.Italsoprovidesthefirmwithasafeguard,shouldtheclientcomplaininafewyears’time,forexample,thatthewith-profitinvestmentdidnotperformaswellasasimilarunit-trust-basedinvestment.Yourkeyfeaturesshouldexplainwhyoneisalowerriskandmay,therefore,haveasmallerreturn.

Sundry mattersTheCBIhasaskedthatfirms’attentionbedrawntoanumberofpointsinrespectofinvestmentbusinessasfollows:

client transaction priorityFirmsmaynotdealforownaccount.Thisisanimportantsafeguardtoensurethatownaccountdealingwillnotresultinalosstotheclient.Whereanemployeedealsinsharesonhisorherownaccount,andaclientalsohasaholding,itisimportantthatareviewprocessisinplacetoensuretheclientissafeguardedandthattheACCArulesastointegrityandobjectivityhavebeenfollowed.

information to clientsWhereafirmitselfseeksadviceonbehalfofaclient,thisfactshouldbedisclosedtotheclient.Thenameofthepartyprovidingtheadviceshouldalsobedisclosed.

conclusionThedocumentationrequirementundertheIIBRsisdetailedbutnotonerous.TheIIBRsdonotmakesellingIIAproductsmoredifficult,butformalisewhatshouldbe‘bestpractice’.

appLication to nortHern ireLanD anD tHe UKNorthernIreland(NI)andUK-basedACCAfirmsmayapplyforauthorisationundertheIIA.WhereaclientislocatedintheRepublicofIreland(ROI)andIIAadviceisgivenwhiletheadviserisphysicallyinROI,thenIIAauthorisationmayberequired.

AdvicegivenbyapractitionerphysicallylocatedinROItoaNIorUK-locatedclientwillalsorequireIIAauthorisation.DependingonhowtheapproachtotheNI-locatedclientwasinitiated,thepractitionermayalsoneedUKFinancialservicesandMarketsAct2000authorisation.TheterritorialscopeoftheIIAandtheFsAandthelegalprinciplesregardingtheprovisionofservicesacrossinternationalbordersarecomplex.Membersareadvisedtoseeklegaladvicepriortoundertakingsuchbusiness.

renewal of firms’ investment business certificates (ireland)Allfirms’investmentbusinesscertificates(Ireland)arevalidonlyuntil31Decemberintheyearofissueandarerenewableannually.

feeSTheauthorisationfeeforaninvestmentbusinesscertificate(Ireland)in2012is£468perfirm.

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5 applying for an insolvency licence

TheCharteredCertifiedAccountants’GlobalPractisingRegulations(GPRs)setouttheeligibilitycriteriaforobtaininganinsolvencylicenceanddetailthecontinuingobligationsplacedoninsolvencylicenceholders.

WHo reQUireS an acca inSoLVencY Licence?AnypersonintheUKwishingtoholdappointmentsregulatedbytheInsolvencyAct1986(asamended)orInsolvency(NorthernIreland)Order1989(asamended)mustfirstobtainaninsolvencylicencefromaRecognisedProfessionalBody(RPB)orcompetentauthority(ietheInsolvencyserviceinGreatBritainortheDepartmentofEnterprise,TradeandInvestmentinNorthernIreland).

ThelegislationdoesnotextendtotheChannelIslandsandIsleofMan,andthereisnocomparablelegislationintheRepublicofIreland.Inthesejurisdictions,membersmayholdwhollylocalinsolvencyappointmentsiftheyholdACCApractisingcertificates.Inotherjurisdictions,membersmustsimilarlyholdACCApractisingcertificatesinordertoundertakewhollylocalinsolvencyappointments.Inaddition,memberspractisinginsolvencyoutsidetheUKmustcomplywithanyprevailinglegislationgoverninginsolvencyappointments.Insolvencylicencesarenot,asageneralrule,issuedtomembersoutsidetheUKunlesstherearecompellingreasonswhyUKinsolvencyappointmentsneedtobeheld.

AUKmemberwhoengagesexclusivelyininsolvencyworkmayholdanACCAinsolvencylicenceona‘stand-alone’basis,andneednotalsoholdapractisingcertificate.However,amemberwhoholdsaninsolvencylicenceissuedbyanotherRPB,orengagesinactivitiesotherthaninsolvencyandfallingwithinACCA’sdefinitionofpublicpractice(outlinedinsection1),willalsoneedtoholdanACCApractisingcertificate.

IntheUK,amembermayalsoapplyforaninsolvencylicenceinanon-appointment-takingcapacity,forexampleasanassistanttoanappointment-taker.Anapplicantforanon-appointment-takinginsolvencylicencemustsatisfythesameeligibilitycriteria,detailedbelow,asanappointment-taker.However,thereisnorequirement

forsuchanapplicanttotakeoutprofessionalindemnityinsuranceintheirownrightortoholdanenablingbond.

ApersonwhoisnotamemberofACCAmayapplyforanACCAinsolvencylicence.separateapplicationformsformembersandnonmemberscanbefoundonACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation(tel:+44(0)1415344175).

GLoBaL practiSinG reGULationSTheCharteredCertifiedAccountants’GlobalPractisingRegulations2003(GPRs)arereproducedintheACCARulebook,whichiscirculatedonCD-ROMtoallACCApractisingcertificateandinsolvencylicenceholdersautomaticallyinJanuaryofeachyear.TheACCA RulebookcanalsobefoundonACCA’swebsiteatwww.accaglobal.com/members/professional_standards

eLiGiBiLitY for an inSoLVencY LicenceToobtainaninsolvencylicenceamembermusteitherhavepreviouslyheldone(orhavepreviouslyheldoneissuedbyanotherRPBorthesecretaryofstate)orhavetherighttopractiseintheUnitedKingdomasaninsolvencypractitionerpursuanttotheEuropeanCommunities(RecognitionofProfessionalQualifications)Regulations2007(s.I.2007/2781)*or,ifitisaninitialapplication,mustmeetthefollowingrequirements:

i havebeenamemberofACCAforacontinuousperiodofatleasttwoyearsprecedingtheapplicationforaninsolvencylicence;

ii haveatleastthreeyearsofpracticalexperienceinafirmofpractisingaccountantsorinsolvencypractitioners,underthesupervisionofalicensedinsolvencypractitioner,orinan

31practice information HanDBooK APPLYINGFORANINsOLVENCYLICENCE

OfficialReceiver’soffice,ofwhichatleasttwoyearsmusthavebeenobtainedafteradmissiontomembership;

iiihaveobtainedatleast600hoursofinsolvencyexperience(andatleast150hoursineachofthreecalendaryears)inthethreeyearsimmediatelyprecedingtheapplicationforaninsolvencylicence;and

ivhaveobtainedapassintheexaminationsoftheJointInsolvencyExaminationBoard(JIEB).

(*suchapplicantsmuststillmeettheongoingexperiencerequirementsetoutbelow.)

‘Membership’isdefinedastheformalgrantoftheACCAletters,notsimplythecompletionoftheACCAexaminations.Detailsofwhatconstitutes‘relevantinsolvencyexperience’,includingalistoftheappointmentsinwhichitispermissibletoactasanassistanttoanappointment-holderinordertogaintherequirednumberofhoursofexperience,aresetoutbelow.

TheexaminationoftheJIEBmayonlybeattemptedif,bythedateonwhichitisheld,acandidatehascompletedoneyearofACCAmembership.Thereisnorequirement,however,forthisyeartohavebeenspentobtainingrelevantinsolvencyexperience.sincetheexamisessentiallypractical,relevantexperienceisclearlyaconsiderableadvantage.

FurtherinformationontheJIEBexaminationcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards/prac_info/licences.TheexaminationisgenerallyheldinearlyNovemberandentryformsareusuallyavailablefromJune,withtheclosingdatenormallybeinginseptember.

TheRPBsandcompetentauthoritiesundertheInsolvencyAct1986andtheInsolvency(NorthernIreland)Order1989shareinformationsuppliedinrelationtoinsolvencylicenceapplicationsandrenewals,andanymatterdisclosedtoACCAmay,asappropriate,bedisclosedtoanyotherRPBorcompetentauthoritywithaninterestinthematter.Inapplyingfororrenewingalicence,amembermustundertaketoacceptthisdisclosureprovision.

eLiGiBiLitY of non-memBerS for an inSoLVencY LicenceApersonwhoisnotamembermaystillberegulatedbyACCAsolelytoactasaninsolvencypractitioner.Toobtainaninsolvencylicenceanon-membermusteitherhavepreviouslyheldoneissuedbyACCA(orhavepreviouslyheldoneissuedbyanotherRPBorthesecretaryofstate)or,ifitisaninitialapplication,mustmeetthefollowingrequirements:

i havecompletedthreeyearsofpracticalexperienceunderthesupervisionofalicensedinsolvencypractitioner,orinanOfficialReceiver’soffice;and

ii haveobtainedaminimumof600hours’insolvencyexperience(andatleast150hoursineachofthreecalendaryears)inthethreeyearsimmediatelyprecedingtheapplicationforaninsolvencylicence;and

iiihavepassedtheexaminationssetbytheJIEB.

Inaddition,non-membersarerequiredtoprovideundertakingstobeboundbyACCA’s:

i GlobalPractisingRegulations,

ii AuthorisationRegulations,

iiiCharter,bye-lawsandregulationsofACCA,insofarastheyareappropriateandapplicable,and

ivdisciplinaryprocedures,togetherwithanypenaltiesimposedundersuchprovisions,insofarassuchpenaltiescouldbeapplicabletoapersonwhoisnotamemberofACCA,asiftheyweremembersofACCA.

reLeVant inSoLVencY eXperienceThe600hoursofinsolvencyexperiencerequiredfortheissueofaninsolvencylicencemaybegainedasanassistanttoanofficeholderinthefollowingappointments:

•companyliquidator,includingliquidatorinamembers’voluntarywinding-up

•companyadministrator,receiverandadministrativereceiver•supervisorofacompositionorschemeforacompany•trusteeinbankruptcyorinterimreceiverorinterimorpermanenttrusteeinsequestration

•trusteeunderadeedofarrangementortrustdeedforcreditors•supervisorofacompositionorschemeforindividuals•administratorundersection421oftheInsolvencyAct1986ofinsolventestatesofdeceasedindividuals.

Thenatureoftheinsolvencyexperiencesoughtshouldbeconsidereddiligently,anditissuggestedthatexperienceshouldbeobtainedinthefollowingactivities:

accounting•maintenanceofaccountingrecordsforcompaniesinliquidationincludingcashbooks,bankaccountsand,whereappropriate,nominal,salesandpurchaseledgers

•preparationofstatementsofaffairs,creditors’anddebtors’ schedules,valuationofstock,work-in-progressandfinishedgoods.

assets•verificationoftheexistenceofassets•verificationoftheownershipofassets.

payroll•agreementofoutstandingclaimswithemployees•agreementofentitlementunderemploymentlegislation•staffevaluationandpayrollcosts•controllingthepayroll•creatingneworadaptingexistingsystemstorecordwageandsalarypayments

•deductionsfromgrosspay.

control of financial records•evaluatingexistingfinancialsystemsandrecordingmethods•assessingtheadequacyofaccountingsystemsasabasisforthepreparationofaccounts

•ascertainingandevaluatingthesystemofcontrolifrelianceistobeplaceduponit

•reviewingfinancialstatementstoseethattheyareconsistentwithotherevidenceobtained.

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evaluating profitability•evaluatingtheshortandlong-termprofitabilityandthepotentialforthebusinesstobesoldasagoingconcern

•preparingbudgetsandcashflowprojections•productandmarketevaluation.

cash management•investingoffunds•designingproceduresformakingpayments•cashflow.

Sale of business and assets•meetingwithprospectivepurchasers•preparingfinancialinformation•liaisingwithagentstopreparesalesbrochure•evaluatingoffersreceived.

taxation•agreeingthetaxationofacompanywithHMRevenueandCustomsincluding:– corporationtax– incometax– capitalgainstax– ValueAddedTax– nationalinsurancecontributions

•taxplanning(inparticular,inrelationtoamembers’voluntarywinding-up).

General•agreeingallcreditors’claims–secured,preferentialandunsecured

•ensuringthatalltherelevantstatutoryrequirementsrelatingtoinsolvenciesareobservedincludingfilingofforms,reportstocreditors,bondrequirements,etc

•preparingreportsforcreditors,auditors,banks,etc•conveningandconductingcreditors’meetings•preparingandpresentingevidenceincourt.

onGoinG conDitionS for HoLDinG an inSoLVencY LicenceAtthetimeofwriting,anymemberwhohaspreviouslyheldaninsolvencylicenceremainseligibletoresumeholdingalicencewithouthavingtore-sittheJIEBexamination,subjecttostillbeingafitandproperpersonandmeetingtheongoingexperiencerequirement.

fit and properACCAwillonlyissueinsolvencylicencestoapplicantswhoare,andwhocontinuetobe,‘fitandproper’persons.PleaserefertotheGlobalPractisingRegulationsforthecriteriausedbytheAdmissionsandLicensingCommitteeindeterminingwhetherapersonisfitandproper.Asummaryofthecriteriaisalsocontainedinsection1.

ACCAmay,inaddition,andwithoutlimitation,alsohaveregardtomatterslistedinRegulation6oftheInsolvencyPractitionersRegulations2005(statutoryInstrument2005/524).

continuing professional developmentAllinsolvencylicenceholdersarerequiredtoundertakeCPD,inaccordancewithMembershipRegulation4(4).TherearefouralternativeroutestoobtainingsatisfactoryCPD.TheseareexplainedonACCA’swebsiteatwww.accaglobal.com/members/cpd

Individualsfollowingtheunitroutearerequiredtoundertakeaminimumof40unitsofrelevantCPDeachyear,ofwhich21unitsshouldbeverifiableCPD.Licenceholdersshouldbeabletodemonstratethattheyhavemaintainedcompetenceinthespecialisedareasoftheirpractices.Forexample,individualswhoworkinthepersonalinsolvencyfieldwillneedtoensuretheymaintaintheirknowledgeacrossbothstatutoryandnon-statutorysolutions.

Alicenceholderwhoundertakes,asaresultofholdingapractisingcertificate,othertypesofworkshoulddividehisorherCPDbetweenthevarioussubjectareasinwhichheorsheworks,toensuretheyaddressanyidentifiedneedandmaintaincompetenceintheareasinwhichheorsheworks.

FurtherinformationonCPDcanbefoundinaseparatefactsheetentitled‘Continuingprofessionaldevelopment(CPD)forpractisingmembers’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

professional indemnity insuranceAninsolvencypractitionerwhoisanappointment-takermustholdprofessionalindemnityinsurance(PII).Inthecaseofapersonwhoemploysfulland/orpart-timestaff,fidelityguaranteeinsurance(FGI)mustbeheldinrespectofallpartners,directorsandemployees.AmemberceasingtopractisemustmakearrangementsforthecontinuedexistenceofPIIandFGIforaperiodofsixyears.

Responsibilityforobtainingadequatecoverlieswiththeindividualandmaybeeffectedwithanyreputableinsurancecompanyorunderwriter.FurtherinformationonPII,includingdetailsofthelimitofindemnity,canbefoundinaseparatefactsheetentitled‘Professionalindemnityinsurancerequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

insolvency practitioners’ bonds and monthly cover schedulesAninsolvencypractitionerwhoisanappointment-takerisrequiredtoobtainan‘enablingbond’(or,inscotland,acaution),withaminimumof£250,000ofcover,fromareputableinsurer,andtoobtainspecificbondsinrespectoftheassetstocomeunderhisorhercontrolinrespectofeachinsolvencyappointmenttaken,whichshallbedetailedonmonthlycoverschedules.Theseschedulesaretobesubmittedtotheholder’senablingbondinsurerbythe15thdayofeachmonthfollowingthattowhichtheyrelateandtoACCAbythe20thdayofeachmonth.TheschedulesmaybesubmittedtoACCAat:

AuthorisationACCA2CentralQuay,89Hydeparkstreet,GlasgowG38BWUnitedKingdom

[email protected]


DetailsoftherequirementsarecontainedintheInsolvencyPractitionersRegulations2005;pleaseseeAppendix1attheendofthissection.

Appointment-takersarerequiredtoprovideeitheracopyortheoriginaloftheirenablingbondbeforethelicencecanbeissued.Acopycanbesubmittedbyemailtoauthorisation@accaglobal.com

continuity of practiceAninsolvencypractitionerwhoisanappointment-takermustenterinto,andkeepinforceforalltheperiodduringwhichalicenceisheld,awrittenagreementwithanotherinsolvencypractitioner–the‘nominee’.Forpartners,thisagreementmaybemadewithanotherequivalentlevelcertificateholderinthepractice.Thisprovidesforthenomineetoberesponsiblefortheindividual’spractice(ortheparticularareasofthepracticecoveredbytheagreement)intheeventofdeathorincapacity.

Continuitycanbeassuredbyenteringintoacontinuityagreementor,inthecaseofincorporatedfirms,bymakingprovisionforitinthememorandumandarticlesofassociation.Thenomineemustbebasedinthesamecountryastheindividual,andbeauthorisedtocarryonalloftheindividual’sworkintheareascoveredbytheagreement(iehavethesametypesofauthorisation).Wheretheindividualpractisesinmorethanonecountry,separatenomineesmustbeappointedaccordingly.

Thenameandaddressofthepersonorfirmresponsibleforcontinuitymustbegivenontheinsolvencylicenceapplicationform.Itismandatorythatawrittenagreement(orprovisioninthememorandumandarticlesofassociation)bemade,andthismaybeinspectedbyACCA.Furtherinformationoncontinuityofpracticecanbefoundinaseparatefactsheetentitled‘Continuityofpracticerequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

notificationInformationonnotifiableevents,andthetimerequirementsfornotification(somechangesmustbenotified28daysinadvance),canbefoundinaseparatefactsheetentitled‘Notificationrequirements’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

ongoing experience requirementAlicenceholderwishingtorenewhisorherinsolvencylicencemustcontinuetomeet,asanappointment-taker,jointappointment-taker or as an assistant to an appointment-taker, an ongoingexperiencerequirement,andobtaintherelevantnumberofhoursofinsolvencyexperienceasfollows:

•600hours’experiencegainedoveraperiodofmorethanthreebutlessthanorequaltofiveyearsimmediatelyprecedingtherenewalapplication,ofwhichatleast150hoursmusthavebeengainedineachofthreecalendaryearswithinsuchperiod;or

•750hours’experiencegainedoveraperiodofmorethanfivebutlessthanorequaltoeightyearsimmediatelyprecedingtherenewalapplication,ofwhichatleast100hoursmusthavebeengainedineachoffourcalendaryearswithinsuchperiod;or

•900hours’experiencegainedoveraperiodofmorethaneightyearsimmediatelyprecedingtherenewalapplication,ofwhichatleast75hoursmusthavebeengainedineachofsixcalendaryearswithinsuchperiod.

Alicenceholderwhofailstomeettherelevantinsolvencyexperiencerequirementforanyonecalendaryearshallbeeligibleforaninsolvencylicenceprovidedheorshecandemonstratethatheorshehasundertakenanadequateprogrammeofadditionalcontinuingprofessionaldevelopmentduringthatyear.

conductAllinsolvencylicenceholdersmustcomplywithACCA’sCodeofEthicsandConduct.Inaddition,insolvencylicenceholdersshouldrefertothespecificguidanceoninsolvencypracticeandothersectionsconcernedwiththeproperconductofpublicpractice,integrityandindependenceaswellastheinsolvencylegislationandstatementsofInsolvencyPractice(sIPs).ThesIPscanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standards/monitoring/insolvency

monitoringInsolvencylicenceholdersmustco-operatewithACCAinitsmonitoringandenforcementofcompliancewiththebye-lawsandregulations.ACCAwillmonitorandenforceitsbye-lawsandregulationsbyanalysingpractitioners’annualreturnsandcarryingoutmonitoringvisits.

Furtherinformationonmonitoringcanbefoundinaseparatefactsheetentitled‘Monitoringrequirementsandglobalqualityassurance’whichcanbedownloadedfromACCA’swebsiteatwww.accaglobal.com/members/professional_standardsorrequestedfromAuthorisation.

otHer USefUL informationUsefulinformationabouttheUKConsumerCreditAct1974,moneylaunderingandregisteringforinvestmentbusinessintheUKandIrelandcanbefoundinsection1.

renewal of insolvency licencesAllinsolvencylicencesareannuallyrenewableandarevalidonlyuntil31Decemberintheyearofissue.Renewalnotificationsforinsolvencylicencesareusuallysentinseptemberofeachyear.

Spare-time licencesAmemberisregardedasbeinginspare-timeinsolvencypracticeifheorsheholdsaninsolvencylicencewhileemployedinindustry,commerceorpublicserviceorwhileemployed(asopposedtobeingapartner,directororprincipal)inapractice.Apractitionerwillbeaskedonhisorherapplicationformwhetherthelicenceisinrespectofspare-timeinsolvencypractice.However,theexperiencerequirementsforobtainingspare-timeinsolvencylicences,andtheongoingconditions,arethesameasforfull-timelicences.

ACCAholdsonfiledetailsofamember’sresidentialandbusinessaddressesandthatofthespare-timeinsolvencypracticeifitconstitutesathirdaddress.Itisessentialwhenreportingchangesinbusinessdetailsoraddressesthatitisclearwhichaddressistobeamended.

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insolvency leviesAllACCAinsolvencylicenceholdersarerequiredtopayannualleviestotheInsolvencyservice,InsolvencyPracticesCouncilandtheDepartmentofEnterprise,TradeandInvestmentinNorthernIreland.InvoicesareusuallysentoutinAprileachyearbyACCAandarepayableirrespectiveofwhetherornotappointmentsaretakenorheld.

inSoLVencY Licence feeS – 2012membersInsolvencylicence–non-appointment-taker £393Insolvencylicence–appointment-taker £1,699

non-membersInsolvencylicence–non-appointment-taker £582Insolvencylicence–appointment-taker £1,896


appenDiX 1 – appLYinG for an inSoLVencY Licence

TherefollowsanextractfromTheInsolvencyPractitionersRegulations2005.

the requirements for Security and caution for the proper performance of the functions of an insolvency practitioner etc.

12(1) schedule2shallhaveeffectinrespectoftherequirementsprescribedforthepurposesofsection390(3)(b)inrelationtosecurityorcautionfortheproperperformanceofthefunctionsofaninsolvencypractitionerandforrelatedmatters.

(2) Wheretwoormorepersonsareappointedjointlytoactasinsolvencypractitionersinrelationtoanyperson,theprovisionsofthisregulationshallapplytoeachofthemindividually.

Schedule 2requirements for Security or caution and related matters

part 2 – requirements relating to security and caution

requirements in respect of security or caution

2 Therequirementsinrespectofsecurityorcautionfortheproperperformanceofthedutiesofinsolvencypractitionersprescribedforthepurposesofsection390(3)(b)shallbeassetoutinthisPart.

requirement for Bonding – terms of the Bond

3(1) Whereaninsolvencypractitionerisappointedtoactinrespectofaninsolventthereshallbeinforceabondinaformapprovedbythesecretaryofstatewhich:

a containsprovisionwherebyasuretyorcautionerundertakestobejointlyandseverallyliableforlossesinrelationtotheinsolventcausedby:i thefraudordishonestyoftheinsolvencypractitionerwhetheractingaloneorincollusionwithoneormorepersons;or

ii thefraudordishonestyofanypersoncommittedwiththeconnivanceoftheinsolvencypractitioner

and

botherwiseconformstotherequirementsofthisPart.

(2) Thetermsofthebondshallprovide:a forthepayment,inrespectofeachcasewheretheinsolvencypractitioneracts,ofclaimsinrespectofliabilitiesforlossesofthekindmentionedinsub-paragraph(1)uptoanaggregatemaximumsuminrespectofthatcase(‘thespecificpenaltysum’)calculatedinaccordancewiththeprovisionsofthisschedule;

b intheeventthatanyamountspayableunder(a)areinsufficienttomeetallclaimsarisingoutofanycase,forafurthersumof£250,000(‘thegeneralpenaltysum’)outofwhichanysuchclaimsaretobemet;

c foraschedulecontainingthenameoftheinsolventandthevalueoftheinsolvent’sassetstobesubmittedtothesuretyorcautionerwithinsuchperiodasmaybespecifiedinthebond;

d thatwhereatanytimebeforetheinsolvencypractitionerobtainshisreleaseordischargeinrespectofhisactinginrelationtoaninsolvent,heformstheopinionthatthevalueofthatinsolvent’sassetsisgreaterthanthecurrentspecificpenaltysum,arevisedspecificpenaltysumshallbeapplicableonthesubmissionwithinsuchtimeasmaybespecifiedinthebondofacoverschedulecontainingarevisedvalueoftheinsolvent’sassets;

e forthepaymentoflossesofthekindmentionedinsub-paragraph(1),whethertheyariseduringtheperiodinwhichtheinsolvencypractitionerholdsofficeinthecapacityinwhichhewasinitiallyappointedorasubsequentperiodwhereheholdsofficeinasubsequentcapacity;

(3) Thetermsofthebondmayprovide:

a thattotalclaimsinrespectoftheactsoftheinsolvencypractitionerunderallbondsrelatingtohimaretobelimitedtoamaximumaggregatesum(whichshallnotbelessthan£25,000,000);and

b foratimelimitwithinwhichclaimsmustbemade.

4 subjecttoparagraphs5,6and7,theamountofthespecificpenaltyinrespectofacaseinwhichtheinsolvencypractitioneracts,shallequalatleastthevalueoftheinsolvent’sassetsasestimatedbytheinsolvencypractitionerasatthedateofhisappointmentbutignoringthevalueofanyassets:

a chargedtoathirdpartytotheextentofanyamountwhichwouldbepayabletothatthirdparty;or

bheldontrustbytheinsolventtotheextentthatanybeneficialinterestinthoseassetsdoesnotbelongtotheinsolvent.

5 InacasewhereaninsolvencypractitioneractsasanomineeorsupervisorofavoluntaryarrangementunderPartIorPartVIIIoftheAct,theamountofthespecificpenaltyshallbeequaltoatleastthevalueofthoseassetssubjecttothetermsofthearrangement(whetherornotthoseassetsareinhispossession)including,whereunderthetermsofthearrangementthedebtororathirdpartyistomakepayments,theaggregateofanypaymentstobemade.

6 Wherethevalueoftheinsolvent’sassetsislessthan£5,000,thespecificpenaltysumshallbe£5,000.

7 Wherethevalueoftheinsolvent’sassetsismorethan£5,000,000thespecificpenaltysumshallbe£5,000,000.

8 Inestimatingthevalueofaninsolvent’sassets,unlesshehasreasontodoubttheiraccuracy,theinsolvencypractitionermayrelyupon:

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a anystatementofaffairsproducedinrelationtothatinsolventpursuanttoanyprovisionoftheAct;and

b inthecaseofasequestration:i thedebtor’slistofassetsandliabilitiesundersection19oftheBankruptcy(scotland)Act1985;

ii thepreliminarystatementunderthatAct;oriiithefinalstatementofthedebtor’saffairsbytheinterimtrusteeundersection23oftheBankruptcy(scotland)Act1985.

part 3 – records relating to bonding and connected matters

record of specific penalty sums to be maintained by insolvency practitioner

9(1) Aninsolvencypractitionershallmaintainarecordofallspecificpenaltysumsthatareapplicableinrelationtoanycasewhereheisactingandsuchrecordshallcontainthenameofeachpersontowhomthespecificpenaltysumrelatesandtheamountofeachpenaltysumthatisinforce.

(2) Anyrecordmaintainedbyaninsolvencypractitionerpursuanttothisparagraphshall,onthegivingofreasonablenotice,bemadeavailableforinspectionby:

a anyprofessionalbodyrecognisedundersection391oftheActofwhichheisorwasamemberandtherulesofmembershipofwhichentitleorentitledhimtoactasaninsolvencypractitioner;

banycompetentauthoritybywhomtheinsolvencypractitionerisorwasauthorisedtoactpursuanttosection393oftheAct;and

c thesecretaryofstate.

retention of bond by recognised professional body or competent authority

10 Thebondreferredtoinparagraph3shallbesentbytheinsolvencypractitionerto:

a anyprofessionalbodyrecognisedundersection391oftheActofwhichheisamemberandtherulesofmembershipofwhichentitlehimtoactasaninsolvencypractitioner;or

banycompetentauthoritybywhomtheinsolvencypractitionerisauthorisedtoactpursuanttosection393oftheAct.

inspection and retention requirements relating to cover schedule – england and Wales

11(1) ThisregulationappliestoaninsolvencypractitionerappointedininsolvencyproceedingsundertheActtoact:

a inrelationtoacompanywhichthecourtsinEnglandandWaleshavejurisdictiontowindup;or

b inrespectofanindividual.

(2) Theinsolvencypractitionershallretainacopyofthecoverschedulesubmittedbyhiminrespectofhisactinginrelationtothecompanyor,asthecasemaybe,individualuntilthesecondanniversaryofthedateonwhichheisgrantedhisreleaseordischargeinrelationtothatcompanyor,asthecasemaybe,thatindividual.

(3) Thecopyofaschedulekeptbyaninsolvencypractitionerinpursuanceofsub-paragraph(2)shallbeproducedbyhimondemandforinspectionby:

a anycreditorofthepersontowhomtheschedulerelates;

bwheretheschedulerelatestoaninsolventwhoisanindividual,thatindividual;

c wheretheschedulerelatestoaninsolventwhichisacompany,anycontributoryordirectororotherofficerofthecompany;and

d thesecretaryofstate.

inspection and retention requirements relating to the cover schedule – Scotland

12(1) Whereaninsolvencypractitionerisappointedtoactinrelationtoacompanywhichthecourtsinscotlandhavejurisdictiontowindup,heshallretaininthesederuntbookkeptunderrule7.33oftheInsolvency(scotland)Rules1986,theprincipalcopyofanycoverschedulecontainingentriesinrelationtohissoacting.

(2) Whereaninsolvencypractitionerisappointedtoactasinterimtrusteeorpermanenttrusteeorasatrusteeunderatrustdeedforcreditors,heshallretaininthesederuntbookkeptforthoseproceedings,theprincipalcopyofanycoverschedulecontainingentriesinrelationtohissoacting.

requirements to submit cover schedule to authorising body

13(1) Everyinsolvencypractitionershallsubmittohisauthorisingbodynotlaterthan20daysaftertheendofeachmonthduringwhichheholdsofficeinacase:

a theinformationsubmittedtoasuretyorcautionerinanycoverschedulerelatedtothatmonth;

bwherenocoverscheduleissubmittedinrelationtothemonth,astatementeitherthattherearenorelevantparticularstobesuppliedor,asthecasemaybe,thatitisnotpracticabletosupplyparticularsinrelationtoanyappointmentstakeninthatmonth;and

c astatementidentifyinganycaseinrespectofwhichhehasbeengrantedhisreleaseordischarge.

(2) Inthisregulation‘authorisingbody’meansinrelationtoaninsolvencypractitioner:

a anyprofessionalbodyrecognisedundersection391oftheActofwhichheisamemberandtherulesofmembershipofwhichentitlehimtoactasaninsolvencypractitioner;or

banycompetentauthoritybywhomheisauthorisedtoactasaninsolvencypractitionerpursuanttosection393oftheAct.

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ACCA29Lincoln’sInnFieldsLondonWC2A3EEUnitedKingdomtel:+44(0)2070595000www.accaglobal.comTh

einformationcontainedinthispublicationisprovidedforgeneralpurposesonly.Whileeveryefforthasbeenmadetoensurethattheinformationisaccurateandupto

dateatthetimeofgoingtopress,ACCAacceptsnoresponsibilityforanylosswhichmayarisefrominformationcontainedinthispublication.Nopartofthispublicationmay

bereproduced,inanyformat,withoutpriorwrittenpermissionofACCA.©ACCAJanuary2010

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