We provide our members who are accountants in practice with accountants' disciplinary hearing advice and representation concerning complaints, regulatory and disciplinary cases, through a team of professional advisers. We also advise on technical matters, ethics, difficult clients and negligence claims. We give advice and guidance to accountants.
Although you are unlikely to be complained about or disciplined, no one can guarantee this. You cannot expect to survive 40 years in practice without having a disagreement with a client or some third party such as another accountant or a solicitor. Some clients are unreasonable and will insist on a complaint being pursued to committee, even if the case manager at your professional body disagrees with the complainant.
A case manager can raise his own complaints, additional to those made by the complainant, which you must answer. It is a requirement that you must answer a complaint within 14 days and that disciplinary proceedings must take priority over everything else. Would you have the time to respond, particularly in the month of January?
The world in the 21st century is far more contentious than it was 30 years ago. The public is well informed. People know their rights. They are far more willing to complain than ever before, particularly if they think they will receive a large cheque at the conclusion. Due to political and public pressure, professional bodies are forever taking steps to expand and toughen their rules and regulations. For instance, since 1st January 2008, ICAEW disciplinary proceedings have been open to the public and the press. The Institutes will and do take tough action against transgressors.
Shortly after we set up Accountants’ Defence in January 2004, a solicitor colleague tried to persuade a certified accountant friend to take out a subscription. The certified accountant (a sole practitioner) said that he thought that spending £150 a year on a subscription to an advisory service was a waste of money as he had never had a complaint in his life and did not expect to receive one. He did not take out membership. A couple of months later, he was reported to the ACCA by another accountant. Much to the certified accountant’s surprise, he was referred to the ACCA Disciplinary Committee. On advice, he pleaded guilty to the charge. The charge related to whether or not he was entitled to retain papers belonging to a client, following a change in accountants. He was legally represented before the Disciplinary Committee. The legal fees which he incurred were £1,500, 10 times the subscription he would have paid in January 2004 and which would have ensured free representation. (Today, his legal fees would have been substantially greater, but membership fees have only increased to £170 per annum).
Set up to help accountants in practice who get into difficulty and to provide accountants' disciplinary hearing advice. In disciplinary proceedings, many accountants are failing to act in their best interests or take adequate care of their own affairs. Even if the dispute with the client never reaches the professional body, we will provide advice and assistance.
And then there are the knock-on effects of a disciplinary conviction.
Stress – Legal representation can alleviate some of the stress. All disciplinary cases are prosecuted by lawyers, usually very experienced barristers.
Experience – An experienced lawyer will have appeared before a tribunal on many occasions.
Objectivity – The lawyer will bring objectivity to the case.
Preparation – In preparing the case, lawyers know what matters and what does not. They will focus on relevant issues and avoid protracted correspondence.
Cost – And if you are a member of Accountants' Defence, it could cost you nothing apart from your annual subscription.
Without effective representation at all stages of a complaint, many have suffered unnecessary damage to their reputation. Some have received substantial fines, which could have been avoided. Some have even lost their qualification and livelihood – possibly avoidable. Some, having failed to contest the disciplinary proceedings, have subsequently been unable to defend an interconnected civil action. Others have been unable to obtain insurance cover as a result of a disciplinary finding or had to pay a massively increased premium. Professional accountancy advice would have addressed these issues. You have nothing to lose by obtaining guidance for accountants.
The ICAEW Investigation Committee offers consent orders which the member can accept or reject. If he rejects, the case is referred to the Disciplinary Committee. Consent orders are no different from disciplinary findings. All attract publicity. As Consent Orders are admissions of liability, there can be serious professional indemnity insurance implications. Insurers' approval must be obtained before a consent order is accepted. Accountants' disciplinary hearing advice before a case is referred to the ICAEW Investigation Committee could influence the outcome. Professional advice for accountants should always be obtained before a consent order is accepted.
The ICAEW Investigation Committee makes over 100 consent orders every year and imposes fines and costs in most cases. (2014 - 107 cases).
ACCA has abolished consent orders. Cases go directly to the ACCA Disciplinary Committee unless the Assessor (there is no longer an Investigations Committee) decides that the case should 'rest on file'.
Not every case requires legal representation. But legal advice for accountants can be important at certain stages. Don’t forget that a complaint may be the forerunner to a claim. A mark of disapproval by the professional body could help in securing financial compensation against you. You will have to spend time dealing with a complaint. A complaint is often an attempt to avoid payment of fees. You do not want to lose all or part of your fee as well.
If the practitioner believes that he is innocent, he would be unwise to admit the complaint. Get professional advice for accountants beforehand. Even when pleading guilty, a good plea in mitigation could prevent exclusion or reduce the size of fine. Accountants' Defence was established with the aim of providing sound accountants' disciplinary hearing advice and effective representation at no cost to the member.
But we do more than assist our members when complaints are made. If a member has a difficult client and believes this could lead to a claim, a complaint or legal proceedings, we will advise him. And what should a member do when he’s lost a client to another firm and receives a professional enquiry letter demanding all his working papers, plus files going back six years and threatening to report matters if they do not receive his full cooperation within seven days? The guidelines may appear confusing. A call to our hotline will result in guidance for accountants from our team of specialists.
Annual subscription for a sole practitioner - £170 plus VAT for all practising qualified accountants.
However, in the first year of membership or part (as applicable), we offer a 50% discount on subscriptions.
We offer a lower per capita subscription for non sole practitioners, depending upon size of firm.
We acknowledge that the rules and regulations of the ICAS, and its disciplinary procedures, differ from, for example, those of the ICAEW, ACCA and CIOT Disciplinary Committees. Nevertheless, we are very familiar with the workings of ICAS. Chris Cope has represented a number of members of the Institute of Chartered Accountants of Scotland in both complaint investigations and before the ICAS Discipline Tribunal. The cost of Chris Cope travelling to the Institute of Chartered Accountants of Scotland will be met by Accountants' Defence. However, in all cases before the Discipline Tribunal at ICAS, we will arrange representation by Scottish counsel (and the cost will be met by us).
Complaints, regulation, discipline and appeals in respect of the following professional bodies:-
ICAEW (Institute of Chartered Accountants in England and Wales).
ACCA (Association of Chartered Certified Accountants).
ICAS (Institute of Chartered Accountants of Scotland).
CIOT (Chartered Institute of Taxation)/ Taxation Disciplinary Board.
CIMA (Chartered Institute of Management Accountants).
CIPFA (Chartered Institute of Public Finance Accountants).
APA (Association of Public Accountants).
For complaints, regulatory, disciplinary and appeal cases, Accountants' Defence will underwrite legal and professional fees up to a maximum of £10,000 plus VAT. If the costs exceed £10,000 (very unusual in our experience), these must be borne by the member.
Most policies will not provide cover for legal fees on complaints and disciplinary cases, unless it is clear that a complaint is likely to lead to a claim. In those circumstances, underwriters have a discretion whether to instruct panel solicitors (or those of your choice who will be expected to have specialist skills) to advise/assist with regard to the complaint investigation. Where there is little or no likelihood of a claim, your PII policy normally will not help you. Accountants' Defence can, though, help; that's why we were established to give advice for accountants. However, always check your professional indemnity policy, particularly if you are insured with RSA.
Generally, it cannot advise you if it is carrying out an investigation into your conduct. However, it can – and will – provide technical advice. If you are not satisfied with the advice received from your professional body, or would rather not approach them, speak to us. We are here to provide guidance for accountants.
Professional conduct is a speciality. Few UK lawyers have the experience of investigating and prosecuting accountants gained by Chris Cope at the ICAEW from 1976-1983, running an advisory service for accountants (1984-1987) and as a practising solicitor (1988-2013) when he specialised in defending accountants. All practising solicitors must notify their indemnity insurers of the areas of law in which they intend to practise. As the average High Street solicitor will rarely be approached to handle a matter of professional discipline, he will almost certainly have no PI cover in respect of any disciplinary work he decides to accept on a one-off basis, even if he instructs counsel to handle the advocacy.
It is essential, therefore, to instruct the experts for accountants' disciplinary hearing advice. Every member of our team has considerable experience and expertise - that's why we selected them. Providing guidance for accountants is their speciality.
Everyone who owns a house is insured against fire and theft. No one expects a fire or to be burgled, but no one can guarantee that it will never happen. Although household insurance can be expensive, you would be most unwise not to arrange cover on the basis that you are unlikely to be making a claim. Sadly, we frequently learn of many householders flooded out by heavy rain who had not arranged contents insurance because they didn’t believe they were at risk from floodwater. Membership of Accountants’ Defence is your way of protecting yourself against that future nasty problem you could never have anticipated. We are not, though, an insurance company.
Initial free telephone guidance for accountants on practice problems. Thereafter, the adviser will charge the member at an hourly rate for technical advice (for instance, practice assurance issues, audit opinions, client money regulations and changes in professional appointments). Practice Assurance and the Money Laundering regulations continue to cause problems for practitioners. Accountants' Defence can help. We provide advice for accountants.
If a member is subject to a negligence claim, he will advise his professional indemnity insurers who will, undoubtedly, instruct large City solicitors. They will have immense experience. However, their role is to protect the interests of insurers. That may conflict with the interests of the member. If the member needs independent professional advice about his interests (for instance preparing a written response to the City lawyers), he should consult Accountants' Defence. We will provide advice for accountants and assistance. Moreover, we will underwrite the member’s professional fees up to £2,500. In this way, we hope to provide wise counsel and helpful assistance. For instance, PI insurers might attempt to avoid liability. We are here to provide guidance for accountants in such circumstances.
Members will receive a quarterly newsletter (Lifeline) dealing with professional conduct and technical issues, including case studies.