PI Handbook 2012

8/2/2019 PI Handbook 2012

http://slidepdf.com/reader/full/pi-handbook-2012 1/40

Pm

Handbook



2

ontents

Introduction 4

1Thepractiingcertificate 6

Whorequireapractiingcertificate? 6

Whatipublicpractice? 6

Whatinotconideredtobepublicpractice? 7

Howtoobtainapractiingcertificate 7

Ongoingconditionforholdingapractiingcertificate 8

Otheruefulinformation 9

2Theauditqualificationandfirm’auditing

certificate 11

Theindividual’practiingcertificateandauditqualification 11

Howtoobtainthepractiingcertificateandauditqualification 11

Thefirm’auditingcertificate 13

Ongoingconditionforholdingapractiingcertificateand

auditqualificationandfirm’auditingcertificate 14


3RegiteringforinvetmentbuineintheUK 17

Introduction 17

Eligibilitycriteria 17

Incidentalmanner 18

Pecuniaryreward 18

Whatactivitiecanfirmundertake? 19

Conductofbuineregulation 19

Overeabrancheorofficeandjuridiction 21

Appendix1:Exemptregulatedactivitie 22

Appendix2:Regulation4(2)oftheDPBR 23





3practice information HanDBooK

4Applyingforafirm’invetmentbuine

certificate(Ireland) 25

Introduction 25

Doyouneedaninvetmentbuinecertificate(Ireland)? 25

InvetmentbuineervicecoveredbytheIIA/invetmentadvice 26

Conditionfortheiueofaninvetmentbuinecertificate(Ireland) 26

Guidetotheproviionofinvetmentbuineerviceandinvetment

adviceandcompliancewiththeACCAIrihInvetmentBuineRegulation 28

ApplicationtoNorthernIrelandandtheUK 29

Fee 29

5Applyingforaninolvencylicence 30

WhorequireanACCAinolvencylicence? 30

GlobalPractiingRegulation 30

Eligibilityforaninolvencylicence 30

Eligibilityofnon-memberforaninolvencylicence 31

Relevantinolvencyexperience 31

Ongoingconditionforholdinganinolvencylicence 32


Appendix1:Applyingforaninolvencylicence 35

CONTENTs



4

ThePractice Information Handbookiintendedtoprovideguidancetomember

(baedonlegilationandtheregulationandruleofACCA),andparticularlyto

thoememberthatarenewtopracticeorcontemplatingettingupinpractice

inthefuture.Itactaaingle,helpfulpointofreference.

ntroduction

Thihandbookhanoregulatorytatu.Itiiuedforguidance

purpoeonly,andintheeventofanyconflictbetweenthe

contentofthihandbookandthecontentofthe ACCA Rulebook,thelatterhallatalltimetakeprecedence.Therefore,thi

handbookhouldnotberegardedbyamemberaaubtitute

forfamiliariinghimelforherelfwiththeappropriateregulation

or,whereneceary,obtainingpecificadviceconcerninga

pecificituation.

someoftheregulationreferredtointhipublicationare

pecifictotheUK,Ireland,anotherdeignatedterritory,Cypru,

ZimbabweorAutralia.However,unleotherwietated,the

contenthabeendeignedtoapplytopractitionerglobally.

Neverthele,practitionerhouldalwayhaveregardto

locallegilationwhich,forreaonofpracticality,maynotbe

dicuedinthihandbook.

RelevantapplicationformcanbefoundonACCA’webiteat www.glbl./bs/ssl_sddsor

requetedfromAuthoriationattheaddrebelow.

tHe acca rULeBooKInformationinthihandbookrefertoACCA’Regulationand

CodeofEthicandConductwhichcanbefoundinthe ACCA

Rulebook,whichiautomaticallycirculatedtoACCApractiing

certificateandinolvencylicenceholderonCD-ROM.The ACCA

RulebookcanbeacceedviatheACCAwebiteat

www.glbl./bs/ssl_sdds.Alternatively,toobtainacopy,pleaecontact ACCA Connect:

Tel:+44(0)1415822000Fax:+44(0)1415822222

Email:[email protected]

appLYinG for YoUr firSt practiSinG certificateIfyouwihtoapplyforyourfirtpractiingcertificate(or

practiingcertificateandauditqualification),youhouldubmityourPractiingCertificateTrainingRecord(PCTR)to:

Authoriation

ACCA

2CentralQuay

89Hydeparkstreet

GlagowG38BW

UnitedKingdom.

Youreligibilityforapractiingcertificate(andauditqualification

whereapplicable)willbeaeed,andyouwillbenotifiedof

theoutcome.Youmaywihtoforwardacompletedpractiing

certificateapplicationformattheametime,orwaituntilyour

PCTRhabeenapprovedbeforeubmittingyourapplication.

Morepecificdetailregardingthetrainingrecordarecontainedinection1.

appLYinG for a firm’S aUDitinG certificateAfirmwhichhold,orintendtohold,auditappointmentin

theUKorIrelandwillneedtoobtainauditregitrationfrom

aRecogniedsupervioryBodyintheUKoraRecognied

AccountancyBodyinIreland.ACCAiabletoregiterfirmin

thirepect,throughthemechanimofanauditingcertificate.

AnapplicationformcanbedownloadedfromtheACCAwebite,

orobtainedfromAuthoriationatACCA.Detailconcerning

applicationforUKorIrihfirm’auditingcertificatemaybe

foundinection2.



5practice information HanDBooK INTRODUCTION

inVeStment BUSineSS

DetailconcerningregiteringforinvetmentbuineintheUK

andapplyingforaninvetmentbuinecertificate(Ireland)may

befoundinection3and4repectively.

appLYinG for an inSoLVencY Licence

Detailconcerningapplyingforaninolvencylicencemaybe

foundinection5.

otHer informationMemberarealoadviedtoreadthefollowingfactheet,which

canbedownloadedfromACCA’webiteatwww.glbl./bs/ssl_sdds

•Profeionalindemnityinurancerequirement

•Continuityofpracticerequirement

•CodeofEthicandConduct

•Controlanddecriptionrequirement

•Obtainingprofeionalwork

•Monitoringrequirementandglobalqualityaurance

•Diciplinaryprocedure

•Notificationrequirement

•Continuingprofeionaldevelopment(CPD)forpractiing

member

•Internalcomplainthandlingprocedure

•Profeionalconductinrelationtotax• Tranferinformation

• Thelegalownerhipof,andrightofacceto,book,file,

workingpaperandotherdocument

• ACCA’ConumerCreditGroupLicence

• DoIneedapracticingcertificate?

Anyfurtherinformationrequiredhouldbeoughtfromthe

appropriatedepartmentofACCA.Foradviceregardingeligibility

forapractiingcertificate,inolvencylicence,auditingcertificate,

exemptregulatedactivitieregitrationortheinvetmentbuine

certificate(Ireland)orcompletingtheapplicationform,pleae

contactAuthoriationon+44(0)1415344175;foradviceon

legilation,practiceortechnicaliue,pleaecontactTechnical

Advioryon:

+44(0)2070595920,or

+353(0)14988907(forIrelandonly).



6

TheCharteredCertifiedAccountant’GlobalPractiingRegulation2003(GPR)

etouttheeligibilitycriteriaforobtainingapractiingcertificateanddetailthe

continuingobligationplacedonpractiingcertificateholder.

1 he practising certifcate

WHo reQUireS a practiSinG certificate?AnyACCAmemberperformingworkunderACCA’definition

ofpublicpracticeorwhoiapartner/directorofafirmwhich

undertakepublicpracticeirequiredtoholdanACCApractiing

certificate.ACCAiue:

•apractiingcertificate,and

•apractiingcertificateandauditqualification.

Thiectionexplainwhenapractiingcertificateirequired,

detailoftheeligibilityrequirementandtheongoingcondition

forholdingthecertificate.Thedifferencebetweenapractiing

certificateandapractiingcertificateandauditqualificationare

explainedinection2.

Practiingcertificateareavailabletomemberwhomeet

theeligibilityrequirement,wherevertheyarebaed.ACCA

mayiuepractiingcertificateandauditqualificationin

theUK(includingJerey,GuerneyandDependencieand

theIleofMan),Ireland,CypruandZimbabwe.IntheeareaACCAhaeitherpecificlegilativereponibilityto

regulateitmemberprovidingauditerviceor(inthecaeof

Cypru)haanagreementwiththerecogniednationalbodyor

regulatoryauthority.Inotherarea,memberholdingpractiing

certificatemaycarryoutauditorotherreervedworkwhere

authoriedtodoobylocallawandwheretheyareableto

demontrateuchauthoriation.

AUKmemberwhoengageexcluivelyininolvencyworkmay

holdanACCAinolvencylicenceona‘tand-alone’baiand

neednotaloholdapractiingcertificate.However,amember

whoholdaninolvencylicenceiuedbyanotherRecognied

ProfeionalBodyorengageinactivitieotherthaninolvency

andfallingwithinACCA’definitionofpublicpractice(outlinedbelow)willaloneedtoholdanACCApractiingcertificate.

Furtherinformationonobtaininganinolvencylicencecanbe

foundinection5.

WHat iS pUBLic practice?

ACCA’definitionofpublicpracticeiquitewidelydrawn.Public

practiceidefineda:

•acceptinganappointmentaanauditor;and/or

•igningorproducinganyaccountorreportorcertificateor

taxreturnconcerninganyperon’financialaffair,whether

anindividualoletrader,anunincorporatedbodyorafirm,in

circumtancewhererelianceilikelytobeplacedonuch

accountorreportorcertificateortaxreturnbyanyother

peron(the‘thirdparty’),ordoinganyotherthingwhichmay

leadthethirdpartytobelievethattheaccountorreportor

certificateortaxreturnconcerningthefinancialaffairofuch

aperonhavebeenprepared,approvedorreviewedbythe

practitioner;and/or

•holdingoneelforitelfout,orallowingoneelforitelftobe

heldout,abeingavailabletoundertaketheactivitiereferred

toabove(andallowingoneelftobeknownaa,orafirmof,‘CharteredCertifiedAccountant()’,‘CertifiedAccountant()’,

‘CharteredAccountant()’,‘Accountant()’or‘Auditor()’or

anyimilardecriptionordeignationtandingforanyuch

decriptioninthecontextofthepractitioner’buinehall

beregardedaanexampleofuchaholdingout);and/or

•holdingoneelfout,orallowingoneelftobeheldout,aa

oleproprietor,partnerordirectorofafirm,ordeignated

memberormemberofalimitedliabilitypartnerhip,where

publicpracticeicarriedon.

Althoughmembermaynotconiderthemelvetobein

publicpractice,itieaytotrayintoareawherethenature

oftheworkiunclear.someoftheeareaaredicuedinthe

nextection.



7practice information HanDBooK THEPRACTIsINGCERTIFICATE

WHat iS not conSiDereD to Be pUBLic practice?

Baicbookkeepingervice,forexamplethepreparationof

accountingrecordtotrialbalancetageandtherecordingof

VAT,andpayrolltranaction,donotcontitutepublicpracticework.Amemberwhoielf-employedandonlycarryingout

takoutidethedefinitionofpublicpracticeneednotholda

practiingcertificate,providinghiorherfirminotdecribed

aafirmofCharteredCertifiedAccountant(orimilar)andhi

orherbuinetationerycannotbereaonablyundertoodto

bethatofapractiingCharteredCertifiedAccountant.(Thii

‘holdingout’adetailedabove.)

Amemberworkingonthefringeofthedefinitionofpublic

practicewillneedtocarefullyaewhetherheorhehould

holdacertificateaa‘protective’meaure.Thiwouldenable

himorhertoundertakeworkwithinthedefinitionofpublic

practicewhichmaybeincidentaltohiorherregularactivitie.

Workundertakenonaelf-employedbaiintheareaof

bookkeepingandmanagementconultancyervice,where

theworkwillbeuedolelybytheclient,wouldberegarded

abeingoutidethedefinitionofpublicpractice.However,

whereaccount,report,certificateortaxreturncouldbe

relieduponbyathirdparty(egacahflowtatementprovided

toabankinupportofaloanapplication),apractiing

certificateirequired.Motformofcommunicationwiththe

taxauthoritie(eventhecompletionofataxreturnwhichwill

beignedbytheclient)orbank/otherfinancialintitution

onclient’financialaffairwouldberegardedacoming

withinthedefinitionofpublicpractice.ACCAhaproduced

afactheetentitled‘DoIneedapractiingcertificate?’which

outlinethecommonareawhereapractiingcertificateirequired.ThicanbedownloadedfromACCA’webiteat

www.glbl./bs/ssl_sdds.A

memberwhoiuncertainatohiorherpoitionhouldwrite

withfulldetailofthepropoedareaofworktoAuthoriationat

ACCAforfurtherguidance.

Hy ubl wk xACCArecogniethatomemembermaywanttohelpout

friend,familyorlocalcharitiebypreparingaccountetc.

Therefore,providingthefollowingconditionaremet,thi

‘honorary’workhallnotcontitutepublicpractice:

•theaccountareofanentitywhichdoenotrequirethe

appointmentofanauditor;and

•nofeeipayableorothermaterialbenefitreceivableinrepect

oftheworkperformed;and

•thegroincomeoftheentityfortheyearpriortotheyearin

quetiondoenotexceed£100,000;and

•theaggregateofuchgroincomewithuchgroincome

ofanyotherentityinrepectofwhichthememberharelied

uponthiregulationinthecalendaryearinquetiondoenot

exceed£200,000;and

•anythirdpartiearemadeawarethattheactivityhabeen

carriedoutbyanHonoraryReportingAccountant;and

•thememberdoenotholdhimelfout,orallowhimelftobeheldout,aaoleproprietor,partner,director,member

ordeignatedmemberofafirmwherepublicpracticei

carriedon.

Councilhadefined‘materialbenefit’aamountingtoanon-

monetarygiftworthmorethan£50invalue.Thereimburement

ofexpenehouldrelateonlytoitemtrictlynecearytothe

completionofatak.

Thehonorarypublicpracticeexemptionexittoallow

membertouetheirkilltomakeacontributiontotheirlocal

communitieortoaitfamily,friendandlocalcharitiea

afavour.Ithouldnotbeviewedaanentryrouteintopublic

practice,anditinotacceptabletoproducebuinetationery

inconnectionwithuchworkwhichpurporttobethatofa

practiingfirm.

Thefactthatanaignmenthabeentakenoninanhonorary

capacitydoenotexoneratethememberfromapotentialclaim

forprofeionalnegligence.Memberundertakingworkunder

thiproviionare,therefore,adviedtocarefullyaewhether

thenatureoftheworktheyintendtocarryoutwarranttheholdingofprofeionalindemnityinurancecoverorundertaking

appropriatecontinuingprofeionaldevelopment.

HoW to oBtain a practiSinG certificateThepractiingcertificateiavailabletomemberinall

countrie.Thepractiingcertificateconfertherighttoundertake

generalpracticeworkbutnotworkreervedforregitered

auditor(eeabove).

Toobtainagloballyportablepractiingcertificate,membermut

meetACCA’practicaltrainingrequirementandcompletea

PractiingCertificateTrainingRecord(PCTR).However,amember

whoholdalicencetopractieiuedbyarecogniednationalbodyorregulatoryauthoritymayapplyforanACCApractiing

certificatewhichivalidonlyinthecountrywherethelocallicence

allowthemembertopractie.ThePCTRandpractiingcertificate

applicationformcanbedownloadedfromACCA’webiteat www.glbl./bs/ssl_sdds

Tobeeligibletoobtainagloballyportablepractiingcertificate,

amembermuthavebeenamemberofACCAcontinuoulyfora

periodofnotlethantwoyearandmutcomplywitheither1

or2below:

1havecompletedthreeyear’practicaltrainingwithanACCAApprovedEmployer–practiingcertificatedevelopment,

undertheuperviionofauitablyexperiencedmember

oranotherperonhaving,intheopinionofCouncil,adequatequalification(workingaeitheranemployeeor

ub-contractor),ofwhichatleattwoyearmuthave

beencompletedafteradmiiontomemberhip.Thepot-

admiiontomemberhiptrainingmutcoverprofeional

conduct,technical(accounting,buineadvice,development

andmeaurement,taxation,buineauranceandinternal

review)andmanagement.Theremainingperiodmaybe

completedbeforeorafter,orpartlybeforeandpartlyafter,

admiiontomemberhip.(Memberhouldrecordtheir

experienceinaPCTR.);

OR

2 haveprevioulyheldanequivalentcertificateiuedbyACCA.



8

Atatedabove,memberholdingalicencetopractieiued

byarecogniednationalbodyorregulatoryauthoritymayapply

foranACCApractiingcertificatewhichivalidonlyinthe

countrywherethelocallicenceallowthemembertopractie.Toobtainapractiingcertificate,acopyofthelocallicence

houldbeubmittedwiththecompletedpractiingcertificate

applicationform.

Detailofhowtoobtainandretainthepractiingcertificateand

auditqualification(anddetailoffirm’auditingcertificate)may

befoundinection2.

onGoinG conDitionS for HoLDinG a practiSinGcertificate

f d susACCAwillonlyiuepractiingcertificatetoapplicantwhoare

‘fitandproper’peron.

Indeterminingwhetheraperonifitandproper,the

AdmiionandLiceningCommitteewilllookatanymatter

whichrelatetotheperon,includingwhethertheperon

iorhabeen(forcountrieoutidetheUK,referenceto

thelegilationhallbedeemedtorefertothecorreponding

legilationofthecountryinquetion):

•convictedofacriminaloffence

•atanytimebankrupt,ignedatrutdeedforcreditororentered

intoadeedofarrangement,chemeorcompoitioninrepect

ofhi/herfinancialaffair(oranyimilaroranalogouevent)

•theubjectofabankruptcyretrictionorderorbankruptcyretrictionundertakingundertheInolvencyAct1986

•removedfromtheofficeofliquidator,trutee,adminitrative

receiver,adminitratororupervior

•theubjectofadiqualificationorderordiqualification

undertakingmadeundertheCompanyDirector

DiqualificationAct1986

•excludedfromorrefuedmemberhipofaprofeionalbody

ondiciplinaryground

•foundtohavefailedtoenurethattheexperienceand

competenceofhi/heremployeeandpracticeaociateare

adequate,havingregardtothenatureoftheworkinvolved

•apatientundertheMentalHealthAct1983

•theubjectofadiciplinaryordermadebyACCAoranother

profeionalbody

•theubjectofaninvetigation,whethercriminal,diciplinary

orotherwie,inrepectofhi/herconduct

•inbreachofanapplicableregulationofACCA

•foundtohavegivenACCAfale,inaccurateormileading

informationorfailedtoco-operatewithACCA.

TheAdmiionandLiceningCommitteemayalotakeinto

accountanymatterrelatingtoanyperonwhoiorwillbe

employedbytheapplicantorwhoiorwillbeinpartnerhip/ directorhipwiththeapplicantinconnectionwithpublic

practice,inolvencywork,exemptregulatedactivitieor

invetmentbuine.

pssl dy suHolderofpractiingcertificatemutholdprofeionalindemnity

inurance(PII).Inthecaeofaperonwhoemployfulland/or

part-timetaff,fidelityguaranteeinurance(FGI)mutbeheldinrepectofallpartner,directorandemployee.Member

ceaingtopractiemutmakearrangementforthecontinued

exitenceofPIIand,ifapplicable,FGIforaperiodofixyear.

Reponibilityforobtainingadequatecoverliewithanindividual

memberandmaybeeffectedwithanyreputableinurance

companyorunderwriter.FurtherinformationonPII,including

detailofthelimitofindemnityandalitofbroker,canbefound

inaeparatefactheetentitled‘Profeionalindemnityinurance

requirement’whichcanbedownloadedfromACCA’webite

atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.

cuy Aholderofanypractiingcertificatewhoicarryingonpublic

practicemutenterintoandkeepinforceforalltheperiodduring

whichapractiingcertificateiheldawrittenagreementwith

anotherindividualorfirm(orapluralityofthem)–the‘nominee’.

Forpartner/director,thiagreementmaybemadewith

anotherequivalentlevelpractiingcertificateholderwithinthe

practice.Thiprovideforthenomineetobereponibleforthe

individual’practiceintheeventofdeathorincapacity.

Continuitycanbeauredbyenteringintoacontinuityagreement

or,inthecaeofincorporatedfirm,bymakingproviionforit

inthearticleofaociation.Thenomineemutbebaedinthe

amecountryatheindividualandbeauthoriedtocarryonall

oftheindividual’work(iehavetheametypeofauthoriation).Wheretheindividualpractieinmorethanonecountry,eparate

nomineemutbeappointedaccordingly.

Thenameandaddreoftheindividualorfirmreponible

forcontinuitymutbegivenonthepractiingcertificate

applicationform.Itimandatorythatawrittenagreement

bemadeandthimaybeinpectedbyACCA.Further

informationoncontinuityofpracticecanbefoundina

eparatefactheetentitled‘Continuityofpracticerequirement’

whichcanbedownloadedfromACCA’webiteat

www.glbl./bs/ssl_sdds orrequetedfromAuthoriation.

nInformationonnotifiableeventandthetimerequirementfor

notification(omechangemutbenotified28dayinadvance)

canbefoundinaeparatefactheetentitled‘Notification

requirement’whichcanbedownloadedfromACCA’webiteat

www.glbl./bs/ssl_sddsorrequetedfromAuthoriation.

cug ssl dvlAllmemberarerequiredtoundertakecontinuingprofeional

development(CPD),inaccordancewithMemberhip

Regulation4(4).Therearefouralternativeroutetoobtaining

atifactoryCPD.TheeareexplainedonACCA’webiteat

www.glbl./bs/dMotmemberinpracticewillfollowtheunitroute,andare

requiredtoundertakeaminimumof40unitofrelevant

CPDeachyear,ofwhich21unithouldbeverifiableCPD.



9practice information HanDBooK THEPRACTIsINGCERTIFICATE

Practiingmemberhouldbeabletodemontratethattheyhave

maintainedcompetenceinthepecialiedareaoftheirpractice.

FurtherinformationonCPDcanbefoundinaeparatefactheetentitled‘Continuingprofeionaldevelopment(CPD)forpractiing

member’whichcanbedownloadedfromACCA’webiteat


cduHolderofACCApractiingcertificatemutcomplywithACCA’

CodeofEthicandConduct.Aeparatefactheetentitled‘Code

ofEthicandConduct’canbedownloadedfromACCA’webite


mg, quly ssu d l

Practiingcertificateholdermutco-operatewithACCAinitmonitoringandenforcementofcompliancewiththebye-law

andregulation.ACCAwillmonitorandenforceitbye-lawand

regulationbyanalyingpractitioner’annualreturnandcarrying

outmonitoringviit.

Furtherinformationonmonitoringcanbefoundinaeparate

factheetentitled‘Monitoringrequirementandglobalquality

aurance’whichcanbedownloadedfromACCA’webite


otHer USefUL information

rwl sg sAllpractiingcertificateareannuallyrenewable.Practiing

certificatefortheUK,Ireland,Jerey,Guerneyand

DependencieandtheIleofManarevalidonlyuntil31

Decemberintheyearofiue.Renewalnotificationforthee

practiingcertificateareuuallyentinseptemberofeachyear.

Practiingcertificateforallothercountriearevaliduntil30

Junefollowingthedateofiue.Renewalnotificationforthee

certificateareuuallyentinMarchofeachyear.

S- sAmemberiregardedabeinginpare-timepracticeifheor

heholdapractiingcertificatewhileemployedinindutry,

commerce,publicerviceoremployed(aoppoedtobeingaprincipal)inapractice.Theexperiencerequirementforobtaining

pare-timepractiingcertificateareexactlytheameafor

fulltimecertificate.

Generally,theholderofapare-timecertificatewillberequired

tocomplywiththeaboveinordertoretaintheircertificate.There

iareducedannualfee,intheUKandIreland,wherepractice

incomedoenotexceed£5,000perannum.(Inothercountrie,

thereinofeeforafullpractiingcertificateinanyevent.)

ACCAholdonfiledetailofamember’reidentialand

buineaddreeandthatofthepare-timepracticeifit

contituteathirdaddre.Itieentialwhenreportingchange

inbuinedetailoraddreethatiticlearwhichaddrei

tobeamended.

tsg sg sg

d ud qulInrepectoftheUKandIreland,itipoibletotranfer

fromapractiingcertificatetoapractiingcertificateandauditqualificationprovidedtheindividualmeettheeligibility

requirement(ieobtainthenecearyuperviedaudit

experiencewithanACCAApprovedEmployer–practiing

certificatedevelopment(audit)).Furtherinformationrelatingto

thepractiingcertificateandauditqualificationmaybefoundin

ection2.

UK csu cd a 1974 – UKIntheUK,theOfficeofFairTradingha,undertheConumer

CreditAct1974,grantedACCAaGroupLicence.TheGroup

Licencecovermember’profeionalactivitieinconumer

credit,creditbrokerage,debtadjuting,debtcounelling,debt

adminitrationandproviionofcreditinformationervice(includingcreditrepair).ThecoveraffordedbytheGroup

Licenceilimitedtolicenableactivitieetoutaboveariing

inthecoureofamember’normalbuine.Memberwhoe

licenableactivitieareaprimaryactivitywillnotbecoveredby

theGroupLicenceandwillneedtoobtaintheirownstandard

LicencefromtheOfficeofFairTrading.

TheGroupLicenceautomaticallycoverolepractitioner,

partnerhipandcompaniewheretheolepractitioner/partner/

directorholdACCApractiingcertificateorinolvencylicence

orthepracticeiregiteredtocarryoutauditworkbyACCAori

permittedtodecribeitelfaCharteredCertifiedAccountantor

AuthoriedPublicAccountant.(CoverundertheGroupLicencei

providedatnoadditionalchargetotheepractitioner/firm.)Anyotherfirmundertakingworkrequiringalicence,orafirmeligible

tobecoveredbytheGroupLicencebutundertakingworkoutide

thecopeoftheGroupLicence,mutobtainaeparatelicence

fromtheOfficeofFairTrading.Aeparatefactheetregardingthe

ConumerCreditActcanbedownloadedfromACCA’webite


my ludg – UKa-y ludgHolderofpractiingcertificatearerequiredtocomplywith

therequirementofrelevantmoneylaunderinglegilationand

regulation,includingpecificallythat:

• theirpracticehaanominatedofficertotakereponibility

forcompliance

• thereareprocedureinplacetogatherandretainevidenceof

theidentificationofallclient

• principalandtaffintheirpracticereceiveappropriatetraining

• ongoingcompliancemonitoringicarriedout,and

• upicionofmoneylaunderingarereportedarequiredbylaw.

IntheUK,anyperonwhoprovideaudit,inolvency,tax,

accountancyortrutandcompanyervicemutbeupervied

byarecogniedupervioryauthorityundertheMoney

LaunderingRegulation2007(employeedonotrequire

uperviion).FurtherguidanceiavailableonACCA’webiteat

www2.glbl./ubs/bs/ubls/hl_shs/dwlds/145.d



10

Memberwhoprovideaccountancyervicewithinthetermofthe

MoneyLaunderingRegulation2007bywayofbuinewhichfall

outidethemeaningdecribedbyregulation4oftheGlobalPractiing

Regulation(forexamplebook-keeping)willbeubjecttouperviionforcompliancewiththeanti-moneylaunderingproviionunderthe

MoneyLaunderingRegulation2007.Inuchcae,eligiblemember

houldconiderobtainingapractiingcertificatefromtheAociation

inordertobeuperviedbytheAociation.Alternatively,member

mutregiterwithHMRevenueandCutomoranotherbody

recogniedforuchpurpoe.

IfyourfirmicontrolledbyACCAmember(ieatleathalfofthe

partner/directorarememberofACCAandtheACCApartner/

directorcontrolatleat51%ofthevotingright)orholdanauditing

certificatefromACCAyou/yourfirmareautomaticallyupervied

byACCA.Ifyourfirmdoenotmeettheerequirementyouwill

needtobeuperviedbyanotherrecogniedupervioryauthority,

uchaHMRC.AflowcharttohelpyoudeterminewhetherornotyouareuperviedbyACCAcanbefoundonACCA’webiteat

www.glbl./dus/nmLr_lwh.d

rgsg vs busss h UK

ACCAiaDeignatedProfeionalBody(DPB)underthe

FinancialserviceandMarketAct2000.Thienablemember

firmtocarryoutalimitedrangeofregulatedactivitie,without

havingtoobtaindirectauthoriationfromtheFinancialservice

Authority(FsA),providedthoeactivitieare‘incidental’tothe

coreaccounting,auditing,taxationandbuineadviceactivitie

ofthefirm.Thilimitedrangeofregulatedactivitieiknowna

exemptregulatedactivitie.Thecopeoftheexemptregulated

activitieandtheapplicationproceareetoutinection3.

AnapplicationformcanbedownloadedfromACCA’webiteat www.glbl./bs/ssl_sddsorobtainedfromAuthoriationatACCA.

AnyACCAfirmcarryingout,orplanningtocarryout,aregulated

activity(otherthananexemptregulatedactivity)willrequiredirect

FsAauthoriation.

alyg ’s vs busss (ild)

AfirminIrelandwihingtoundertakeactivitiewithinthecopeof

theIrihInvetmentIntermediarieAct1995mutbeappropriately

authoriedbyanApprovedProfeionalBody(APB).ACCAiable

toauthoriefirmthroughthemechanimofaninvetmentbuine

certificate(Ireland).Anapplicationformforapplyingforaninvetment

buinecertificate(Ireland)canbedownloadedfromACCA’webiteatwww.glbl./bs/ssl_sddsorobtainedfromAuthoriationatACCA.Invetmentbuinecertificate(Ireland)

canonlybeiuedtofirmcontrolledbyholderofACCApractiing

certificateortheequivalentiuedbyotherAPB.Furtherinformation

canbefoundinection4.

practiSinG certificate feeS – 2012UK, ild, Jsy, Gusy d Dds

d h isl m:Practiingcertificate–full-time£393

Practiingcertificate–pare-time,wherepracticeincomeilethan

£5,000perannum£83

Practiingcertificateandauditqualification–pareandfull-time£393

oh us:Allcategorie–freeofcharge.





12

rgsd ssl qul

Toobtaintherecogniedprofeionalqualificationamember

muthavecompletedthreeyearofpracticaltraininginapublic

practicewithanACCAApprovedEmployer–practiingcertificatedevelopment(audit),workingeitheraanemployeeorub-

contractor,twoyearofwhichmutbepot-memberhip.

(Trainingobtainedinapracticewith‘approved’tatugrantedby

anotherRecogniedQualifyingBodyundertheUKCompanie

Act2006orIrihCompanieAct1990willnotcountunlethe

practicehaalobeenregiteredandacceptedbyACCA.)

Thetrainingmutcover:audit,profeionalconduct,technical

(accounting,buineadvice,developmentandmeaurement,

taxation,andbuineauranceandinternalreview)and

management.Atleat44weekoftrainingmutbeinaudit

work.Thihouldincludeatleat22weekpecificallyin

tatutoryaudit.Memberwhoeauditexperiencewaachievedmorethantwo

yearpriortotheirapplicationforapractiingcertificateand

auditqualificationwillneedtoprovidedetailofauditexperience

andaudit-relatedCPDachievedintheprevioutwoyear,before

apractiingcertificateandauditqualificationcanbeawarded.

Auditexperienceobtainedmorethantwoyearprevioulymay

meetthepracticaltrainingrequirementoutlinedabove,but

ACCAaloneedtobeatifiedthatmember’auditknowledge

iuptodate,andthattheyremaincompetenttodoauditwork,

beforegrantingapractiingcertificateandauditqualification.

Membermaychooetoimply‘bank’theirexperience,andnot

applyforapractiingcertificateandauditqualificationtraight

away.However,iftheydecidetoapplyinthefutureandtheirauditexperienceimorethantwoyearoldatthepointof

theirapplication,theywillneedtodemontratehowtheyhave

remainedcompetenttodoauditwork.

Atleattwoyearoftrainingmutbeobtainedunderthe

uperviionof:

i amemberholdingapractiingcertificateandaudit

qualification;or

ii anyotherperonhaving,intheopinionofCouncil,adequate

qualificationandexperienceandwhoiafullyqualified

tatutoryauditorunderparagraph9(4)ofschedule11tothe

CompanieAct2006oftheUK,uchatatutoryauditor

practiinginEEAtate,ubjecttotherelevantauthoriation(orequivalentperoninrelationtoapplicantforcertificate

relatingtocountrieotherthantheUnitedKingdom).

Inaddition,membermuthavecompletedtheUKorIrih

variantofthefollowingACCAexamination:

•PaperP7, Advanced Audit and Assurance(orPaper10,

AccountingandAuditPracticeor3.1,AuditandAurance

serviceunderpreviouexaminationyllabi)

•Thetaxandlawvariantofthejuridictiontowhichtheaudit

qualificationapplie.

•TheadaptedPaperP2,Corporate Reporting,ifthipaperwa

completedonorafter1January2011.

(NBCIPFAmember(unletheyhavecompletedthepaper

pecifiedwithinCIPFA’profeionalaccountancyqualification

tobeeligibleforitauditqualification)admittedtoACCA

memberhipunderMemberhipRegulation3(e),mutcompletetheeexaminationpaper.)

studentwhoareawardedexemptionfromallpaperinthe

Fundamentalleveloftheyllabuarerequiredtocomplete

theProfeionallevelwithinfiveyearhouldtheywihto

ubequentlyapplyforaUKorIrihpractiingcertificateand

auditqualification.similarly,tudentintheUKwhoareeligible

forexemptionfromallorpartoftheFundamentallevelonthe

baiofqualificationgainedmorethanfiveyearpreviouly(at

thedateofinitialregitrationaanACCAtudent)willforfeit

theeexemptionandberequiredtocompletetheFundamental

levelexam.

Jsy, Gusy d Dds d h isl mTherequirementforamemberwihingtoobtainapractiing

certificateandauditqualificationpecificallyforJerey,Guerney

andDependencieandtheIleofManare:

•tohavebeenanACCAmemberforaperiodofatleattwo

year;

•tohavecompletedthreeyear’practicaltraininginapublic

practicewithanACCAApprovedEmployer–practiing

certificatedevelopment(audit),workingeitheraanemployee

orub-contractor,undertheuperviionof:

i amemberholdingapractiingcertificateandaudit

qualification;or

ii anyotherperonhavingintheopinionofCounciladequatequalificationandexperienceandwhoiafullyqualified

tatutoryauditorunderparagraph9(4)ofschedule11to

theCompanieAct2006oftheUK;

Trainingmutcover:audit,profeionalconduct,technical

(accounting,buineadvice,developmentandmeaurement,

taxation,andbuineauranceandinternalreview)and

management.

cyus

Therequirementforamemberwihingtoobtainapractiing

certificateandauditqualificationpecificallyforCypruare:

•tohavebeenanACCAmemberforaperiodofatleattwo

year;andtohavecompletedthreeyearoftraininginpublicpracticewithanACCAApprovedEmployer–practiing

certificatedevelopment(audit),undertheuperviionofan

appropriatelyqualifiedprincipal,twoyearofwhichhallhave

beenobtainedafteradmiiontomemberhip,avethatthe

traininginauditmaybecompletedatanytimeinthethree

year;or

•tohaveprevioulyheldanequivalentcertificateiuedby

ACCA*.

* ifthecertificatewaheldmorethantwoyearpriortothe

applicationforapractiingcertificateandauditqualification,

memberwillberequiredtoprovidedetailofauditexperience

andaudit-relatedCPDachievedintheprevioutwoyear,beforeapractiingcertificateandauditqualificationcanbeawarded.



13practice information HanDBooK THEAUDITQUALIFICATIONANDFIRM’sAUDITINGCERTIFICATE

Additionally,membermutaloatifyanyotherqualification

requirementinaccordancewiththelawofCypru.

Thetrainingmutconitofexperienceinallofthefollowing:audit,profeionalconduct,technical(accountancy,buine

advice,developmentandmeaurement,taxation,andbuine

auranceandinternalreview)andmanagement.

Zbbw

Therequirementforamemberwihingtoobtainapractiing

certificateandauditqualificationpecificallyforZimbabweare:

•tohavecompletedthreeyearoftraininginpublicpractice

withanACCAApprovedEmployer–practiingcertificate

development(audit),undertheuperviionofanappropriately

qualifiedprincipal(orfiveyearinthecaeofanapplicant

whoinotaholderofauniveritydegree);or

•tohaveprevioulyheldanequivalentcertificateiuedbyACCA.

Thetrainingmutconitofexperienceinaudit,accounting

andtaxation.(NBHolderofapractiingcertificateandaudit

qualificationinZimbabwemayapplytothePublicAccountant

andAuditorBoardforregitrationaapublicauditororpublic

accountantinZimbabwe.)

tsg sg sg d ud qul

InrepectoftheUKandIreland,itipoibletotranfer

fromapractiingcertificatetoapractiingcertificateand

auditqualificationprovidedtheindividualmeettheeligibility

requirement(ieobtainthenecearyuperviedauditexperienceinanACCAApprovedEmployer–practiingcertificate

development(audit)).

Itinot,generally,poibletotranferapractiingcertificateand

auditqualificationbetweencountrie.

tHe firm’S aUDitinG certificateAfirmintheUKorRepublicofIreland(beingapartnerhip,

company,limitedliabilitypartnerhip*orevenaolepractitioner)

thathold,orintendtohold,auditappointmentwillneedto

obtainauditregitrationfromaRecogniedsupervioryBody

(RsB)intheUKor,intheRepublicofIreland,aRecognied

AccountancyBody(RAB).ACCAiabletoregiterfirminthiregardthroughthemechanimofafirm’auditingcertificate.

AnapplicationformcanbedownloadedfromACCA’webite

atwww.glbl./bs/ssl_sddsorobtainedfromAuthoriationatACCA.

* LimitedliabilitypartnerhipdonotexitintheRepublicof

IrelandbutalimitedliabilitypartnerhipintheUKmayapplyfor

afirm’auditingcertificatefortheRepublicofIreland.

alyg ’s udg TheGPRprovidethebaiforACCA’compliancewiththe

proviionrelatingtotheregitrationofauditorintheCompanie

Act2006andtheIrihCompanieAct1990andRegulation

24oftheEuropeanCommunitie(statutoryAudit)(Directive2006/43/EC)Regulation2010.TheGPRarepublihedin

the ACCA Rulebook.Thelegilationpermitauditappointment

tobeheldinthenameoffirm(oleproprietorhipand

partnerhip)andincorporatedfirm(limitedcompanieand,in

theUK,limitedliabilitypartnerhip),ratherthaninthename

ofindividualpartner/director/memberwithinthoefirm.

FirmwihingtoactaregiteredauditormutobtainauditregitrationfromanRsBorRAB,uchaACCA.ACCAiable

tograntregiteredauditortatubymeanoftheiueoffirm’

auditingcertificate.

FirmmutmakeeparateapplicationforUKandIrihauditing

certificate.

cl quls ssy udg b gdFirm’auditingcertificatemaybeheldbyanyfirmcontrolledby

holderoftheACCApractiingcertificateandauditqualification

orequivalentcertificateiuedbytheIntituteofChartered

AccountantinEnglandandWale(ICAEW),theIntitute

ofCharteredAccountantofscotland(ICAs)andCharteredAccountantIreland(CAI).Thiincludeoleproprietorhipand

anypartnerhiporincorporatedfirm.Thiiirrepectiveofwhether

ornotthefirmcontainanyACCAprincipal,partnerordirector.

ACCAhaaloetablihedachemeforfirmintheUK

controlledbymemberoftheAociationofAuthoriedPublic

Accountant(AAPA).suchfirmhouldobtaintheAAPAcheme

documentation,whichiavailablefromAuthoriationatACCAor

fromtheACCAwebiteatwww.glbl.///s

ACCAwillaloconiderapplicationfromfirmcontrolledby

memberoftheIntituteofCertifiedPublicAccountantin

Ireland,butonlyinrepectofauthoriationintheRepublicof

Ireland.suchfirmhouldrefertotheremainderofthiectionaapplicableandcompletetherelevantform.

Eligiblefirm(iecontrolledbyACCA/ICAEW/ICAs/CAImember)

mayholdfirm’auditingcertificateforboththeUKandIreland

butmutcompleteeparateapplicationform.

Sl s

AnACCAmemberwhoholdapractiingcertificateandaudit

qualificationandwhowihetocarryoutauditworkmut,in

addition,holdafirm’auditingcertificate.Thiapplieeven

iftheolepracticetradeinthepractiingcertificateholder’

name.AuditworkincludetheauditofUKorIrihregitered

companie,othertatutorilyregulatedentitieandother

aignmentrequiringaregiteredauditor.Onlyafirm(includinganyoleproprietorpractiingintheirownname)holdingafirm’

auditingcertificatewillbeabletodecribeitelfaaRegitered

Auditor()andwillhaveitdetailplacedontheRegiter

ofstatutoryAuditorintheUK,ortheregiterheldbythe

CompanieRegitrationOfficeinIreland.

InthecaeofACCAolepractitioner,thereinoadditional

formorfeeforthefirm’auditingcertificate.Aolepractitioner

CharteredAccountantwhoholdapractiingcertificatefrom

ICAEW,ICAsorCAIieligibletoapplyforanACCAfirm’

auditingcertificateforhiorherfirm,andtocontinuetodecribe

hiorherpracticeaafirmofCharteredAccountant.Therei

norequirementforthemtobecomeamemberofACCAbutthey

maydooiftheywih.AnapplicationformfordirectadmiiontomemberhipcanbedownloadedfromACCA’webiteat

www.glbl./bs/d .Thefirm’auditing

certificatefeeinthicaei£393in2012.



14

pshs, LLps d d s

Partnerhip,incorporatedfirmand,intheUK,limitedliability

partnerhipwihingtoholdauditappointmentmutmake

applicationforACCAfirm’auditingcertificate(oreekauthoriationfromanotherRsBorRAB).However,forafirm

compoedwhollyofpartnerordirectorholdingACCApractiing

certificate,thereinofeeforafirm’auditingcertificate.

Mixedfirm,compoedwhollyofCharteredCertifiedandChartered

Accountantpartnerordirector,areeligibleforACCAfirm’

auditingcertificate.Inthicae,the2012feeicalculatedonthe

baiof£393foreachnon-ACCApartnerordirector.

Othermixedfirm(perhapcontainingnon-qualifiedpartner

ordirector)areeligibleforACCAfirm’auditingcertificateif

theyarecontrolledbyholderofequivalentqualification(a

detailedabove).Controlideterminedbytheditributionofvote

withinthefirmonallmaterialmatter,andholderofrelevantqualificationmutcontrolatleat51%ofuchvote.(Therei

norequirementtohaveanACCAmemberaapartnerordirector

ofafirm.)FirmcontrolledbyCharteredAccountantmaybe

authoriedbyACCAwhilecontinuingtodecribetheirpractice

a‘CharteredAccountant’.Again,the2012feeibaedon

£393foreachpartnerordirectorwhoinotanACCAmember.

(CharteredAccountantwhoarepartnerordirectorinfirm

withACCAfirm’auditingcertificatemay,iftheywih,applyfor

directadmiiontomemberhipofACCA.Anapplicationform

fordirectadmiioncanbedownloadedfromACCA’webiteat

www.glbl./bs/d)

Wheretheerequirementarebeingappliedinconnectionwitha

limitedliabilitypartnerhip,thereferencetoapartnerorpartnerhouldbecontruedareferringtoamemberormemberofthe

limitedliabilitypartnerhip.

Inthecaeofafirm’auditingcertificategrantedtoalimited

liabilitypartnerhiporanincorporatedfirm,thereianadditional

controlrequirement–thatthemajorityofvoteonitboardof

director(orofthememberofalimitedliabilitypartnerhipin

theUK)mutbeheldbyholderofrelevantqualification.

oh ds ssy h ssu ’sudg

Withineachpartnerhip,limitedliabilitypartnerhipor

incorporatedfirm,anominatedcontactpartner/directorwill

haveoverallreponibilityforthefirm’compliancewiththeconditiondetailedbelow.

rssbly ud wk–Eachofthepartnerordirectorandotherperonreponibleforthefirm’auditworkmut

holdanACCApractiingcertificateandauditqualificationoran

equivalentcertificate.

cl–Inexerciingcontrol,thefirmmuthaveinplace

arrangementtopreventunqualifiedindividualandperon

(whethermemberofthefirmornot)fromexertinginfluenceover

thewayinwhichauditareconducted.

onGoinG conDitionS for HoLDinG a practiSinG

certificate anD aUDit QUaLification anD firm’SaUDitinG certificate

f d susEverypartnerordirectormutbeafitandproperperoninorder

thatthefirmmayholdanauditingcertificate.ACCAmaytake

intoaccountanymatterwhichrelatetoanyofthepartner

ordirectorofthefirmoranyoneemployedby,oraociated

withit,inconnectionwithpublicpractice,uchafailureto

cooperatewithACCAorprovidingfale,inaccurate,mileadingor

incompleteinformationtoACCA.

Thereialitofituationinwhichapractiingcertificateholder

wouldfailtomeetthefitandpropertaturequirementetout

inection1.Inadditiontotheabovecriteria,wheretheiue

ofapractiingcertificateandauditqualificationiconcerned,

theAdmiionandLiceningCommitteewilltakeintoaccount

whetheranindividualhacontravenedanyproviionoflawrelatingtotheeekingofanappointmentoractingaauditoror

inolvencypractitionerortothecarryingonofexemptregulated

activitieorinvetmentbuine.

rssbly d l

Thecontrolqualificationnecearyforanauditingcertificate

tobegranted,etoutabove,mutbemaintainedthroughout

theperiodthatthefirmholdanauditingcertificate.Further

detailregardingthecontrolofthefirm(togetherwith

proviionconcerningthedecriptionofthefirm)maybe

foundinaeparatefactheetentitled‘Controlanddecription



Eachofthepartnerordirectorreponibleforthefirm’audit

workmutcontinuetoholdanACCApractiingcertificate

andauditqualificationoranequivalentcertificate.Thefirm

mutalomaintainitarrangementforenuringthatthe

independenceandintegrityofitauditworkarenotinfluencedby

unqualifiedindividual.

pssl dy suFirmmutholdprofeionalindemnityinurance(PII).Cover

mutaloincludefidelityguaranteeinurance(FGI)inrepectof

anypartner,directorandemployee.PIIhouldprovidecoverin

repectofallcivilliabilityincurredinconnectionwiththeconductofthefirm’buinebythepartner,directororemployee,and

FGIhouldincludecoveragaintanyactoffraudordihonety

byanypartner,directororemployeeinrepectofmoneyorgood

heldintrutbythefirm.Memberceaingtopractiemut

makearrangementforthecontinuedexitenceofPIIand,where

applicable,FGIforaperiodofixyear.

Reponibilityforobtainingadequatecoverliewiththe

firm,andmaybeeffectedwithanyreputableinurance

companyorunderwriter.FurtherinformationonPII,

includingdetailofthelimitofindemnity,canbefoundina

eparatefactheetentitled‘Profeionalindemnityinurance





15practice information HanDBooK THEAUDITQUALIFICATIONANDFIRM’sAUDITINGCERTIFICATE

cuy

Afirmmutprovideforcontinuityofpractice.Proviionfor

continuityhouldbemadewithinthefirm’partnerhip

agreementorarticleofaociation,providedatleattwopartner/directorareregiteredauditor,orbyenteringintoa

writtenagreementwithanotherfirmofregiteredauditor.(The

nameandaddreofanotherfirmreponibleforcontinuitymut

begivenontheapplicationformforanauditingcertificate.)Iti

mandatorythatawrittenagreementbemadeandthimaybe

inpectedbyACCA.

WherethefirmpracticeinboththeUKandtheRepublicofIreland,

continuityarrangementmutbemadewithafirm(orfirm)in

bothcountrie.Furtherinformationoncontinuityofpracticecan

befoundinaeparatefactheetentitled‘Continuityofpractice

requirement’whichcanbedownloadedfromACCA’webiteat

www.glbl./bs/ssl_sdds or

requetedfromAuthoriation.

nIntheUK,ACCAirequiredtoupplyinformationtotheRegiter

ofstatutoryAuditor(www.auditregiter.org.uk).Eachentryin

theregiterwillincludethenameandabuineaddreofthe

firm.Inaddition,inthecaeofincorporatedfirm,theregiter

willincludethenameandbuineaddreofeachperon

whoiadirectororholdhareinthefirm,andinthecaeof

apartnerhip(includinglimitedliabilitypartnerhip)orole

proprietorhipitwillincludethename()andaddre(e)ofthe

proprietororpartner/member.InIreland,imilarinformationi

uppliedtotheregiterheldbytheCompanieRegitrationOffice

(www.cro.ie).InordertoenableACCAtokeepthiregiteruptodate,

firmarerequiredtonotifyACCAofanumberofdifferent

eventorchange.

Furtherinformationcanbefoundinaeparatefactheetentitled

‘Notificationrequirement’whichcanbedownloadedfromACCA’

webiteatwww.glbl./bs/ssl_sdds

orrequetedfromAuthoriation.

cug ssl dvl

AllmemberarerequiredtoundertakeCPD,inaccordancewith

MemberhipRegulation4(4).Therearefouralternativeroute

toobtainingatifactoryCPD.TheeareexplainedonACCA’

webiteatwww.glbl./bs/d

Memberfollowingtheunitroutearerequiredtoundertakea

minimumof40unitofrelevantCPDeachyear,ofwhich21

unithouldbeverifiableCPD.Practiingmemberhouldbe

abletodemontratethattheyhavemaintainedcompetencein

thepecialiedareaoftheirpractice.

FurtherinformationonCPDcanbefoundinaeparatefactheet

entitled‘Continuingprofeionaldevelopment(CPD)forpractiing



cdu ubl

Allpartner/directorandotherperonreponibleforauditwork

mutcomplywithACCA’CodeofEthicandConduct,epecially

inconnectionwiththeproperconductofpublicpractice,integrityandindependence.TheCodeofEthicandConductiavailable

fromthe ACCA Rulebook.Aeparatefactheetentitled‘Codeof

EthicandConduct’ialoavailablefromACCA’webiteat

www.glbl./bs/ssl_sdds

thl sdds

Allpartner/directorandotherperonreponibleforauditwork

mutcomplywithACCA’Technicalstandard,and,inparticular,

firmpractiingintheUKandtheRepublicofIrelandmut

complywiththeInternationalstandardonAuditing(UKand

Ireland)iuedbytheAuditingPracticeBoard.

mgAllpartner/directorandotherperonreponibleforauditwork

mutco-operatewithACCAinitmonitoringandenforcementof

compliancewiththebye-lawandregulation.

ACCAwillmonitorandenforceitbye-lawandregulationby

analyingfirm’annualreturnandcarryingoutmonitoringviit.

Monitoringviitwilltakeplacenormallyonceeveryixyear,

althoughtheymaybeatmorefrequentintervalifneceary

aareultofcomplaintorignificantchangeinapractice.

Additionalviitorfollowupactionmayaloreultfromaviit

whichrevealedinadequacie.



aurance’whichcanbedownloadedfromACCA’webiteatwww.glbl./bs/ssl_sdds/ gorrequetedfromAuthoriation.

DssAfirmholdinganACCAauditingcertificatemayincludethe

followingtatementontheirbuinetationery:

‘RegiteredaauditorbytheAociationofChartered

CertifiedAccountant’.

Firmmayalouethedecription‘RegiteredAuditor’.

Furtherinformationcanbefoundinaeparate

factheetentitled‘Controlanddecriptionrequirement’

whichcanbedownloadedfromACCA’webiteatwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.


UefulinformationabouttheUKConumerCreditAct1974,

moneylaunderingandregiteringforinvetmentbuineinthe

UKandIrelandcanbefoundinection1.

S- sAmemberiregardedabeinginpare-timepracticeifheor

heholdapractiingcertificateandauditqualificationwhile

employedinindutry,commerce,publicerviceoremployed(aoppoedtobeingaprincipal)inapractice.Theexperience



16

requirementforobtainingapare-timepractiingcertificateand

auditqualification,andtheongoingcondition,areexactlythe

ameaforfull-timecertificate.

Renewalofapractiingcertificateandauditqualification

Allpractiingcertificate(includingthepractiingcertificateand

auditqualification)arerenewableannually.Practiingcertificate

fortheUKandIrelandarevalidonlyuntil31Decemberin

theyearofiue.Renewalnotificationfortheepractiing

certificateareuuallyentinseptemberofeachyear.Practiing

certificateforallothercountriearevaliduntil30Junefollowing

thedateofiue,andtherenewalnotificationforthee

certificateareuuallyentinMarchofeachyear.

rwl s’ udg s

Allfirm’auditingcertificatearevalidonlyuntil31December

intheyearofiue.Allfirm’auditingcertificatearerenewable

annually.Afirmthatceaetoholdafirm’auditingcertificatewillbeeligibletoreumeholdingoneprovidingitmeetthe

fitneandproprietyrequirementandotherongoingcondition

atthetimeoftheubequentapplication.

JusdThelegilationreferredtodoenotextendtotheChannelIland

orIleofMan.Firm’auditingcertificatearenot,therefore,

necearyintheejuridiction.AfirmbaedoutidetheUKand

Irelandmay,ifitieligible,holdafirm’auditingcertificateifit

wihetoholdUKorIrihauditappointment.Inuchcaethe

feeandconditionreferredtoaboveremainapplicable.However,

firm’auditingcertificatearenotiuedwhereitipropoedto

onlyholdauditappointmentofcompanieregiteredoutidetheUKandIreland.

practiSinG certificate anD aUDit QUaLificationfeeS – 2012

Thefeeforapractiingcertificateandauditqualificationvalidin

theUK,Ireland,Jerey,GuerneyandDependencieandtheIle

ofMani£393.Thereicurrentlynofeeleviedforapractiing

certificateandauditqualificationinCypruorZimbabwe.

firm’S aUDitinG certificate fee – 2012Thefeeforafirm’auditingcertificateicalculatedonthebai

of£393foreachnon-ACCAprincipalofthefirm.




3 egistering or investentbusiness in the UK

ACCAhabeengrantedDeignatedProfeionalBody(DPB)tatu,underthe

FinancialserviceandMarketAct2000,byHMTreaury.DPBtatuenable

ACCAtoregulatefirmtoundertakealimitedrangeofinvetmentactivitie

knownaexemptregulatedactivitie.

introDUctionFirmthatmaywihtoconductinvetmentbuinehavethe

optionofdirectregitrationwiththeFinancialserviceAuthority(FsA)inordertocarryoutmaintreaminvetmentbuine

activitie.Alternatively,ACCA’DeignatedProfeionalBody

Regulation2001(DPBR)mayapplytothoefirmthatdonot

(orcannot)obtaindirectregitration.

ACCAhaputinplaceaimpleetofregitration

arrangementformemberandfirmwhowihtoundertake

exemptregulatedactivitie.Therearenoeparatefeefor

firmregiteringtoundertakeexemptregulatedactivitie.

TheapplicationformcanbefoundonACCA’webiteat

www.glbl./bs/ssl_sddsorrequetedfromAuthoriation(tel:+44(0)1415344175).

Thecopeoftheexemptregulatedactivitiei,toagreatextent,

pecifiedintheFinancialserviceandMarketAct2000(RegulatedActivitie)Order2001.ThiiummariedinACCA’

DPBR,whicharepublihedinthe ACCA Rulebook.

Aolepractitioner’firmorapartnerhiporincorporatedfirm

thatiwhollycompoedofACCApartner/member/director

may,inmotcircumtance*,applyforexemptregulated

activitieregitrationbyimplycompletingtheapplicationform.

Amixedpartnerhipormixedincorporatedfirmwillbeeligible

toapplytoberegiteredbyACCAforexemptregulatedactivitie

purpoeubjecttothefirmcontainingatleatoneACCA

partner/member/directorandthefirmbeingcontrolledby

partner/member/directorwhoarememberofaDPB*.Awell

acompletingtheapplicationform,anadditionalform(PIB(UK))houldbecompletedbyeachnon-ACCApartner/member/director

onwhichtheyarerequiredtogivedeclarationthattheywillbe

boundbyACCAregulationaiftheywereACCAmember.Thi

formcanalobefoundonACCA’webite.Atthetimeofwriting,thereinofeeformixedfirmholdingexemptregulatedactivitie

regitrationthroughACCA.However,thiiunderreview,and

itipoiblethatafeeformixedfirmwillbeintroducedinthe

futurewhichreflecttheamountofadditionaladminitrativeand

monitoringworkgeneratedbyregiteringmixedfirm.

(*FirmwhicharedirectlyauthoriedbytheFsAforinvetment

buinepurpoewillnotbeeligibletocarryoutexempt

regulatedactivitieundertheDPBarrangement.)

eLiGiBiLitY criteriaTheDPBRapplytoallmemberandfirmthatatifythe

relevanteligibilityrequirement.Theyapplytoexemptregulatedactivitiecarriedonin,intoorfromtheUnitedKingdom.The

DPBR,therefore,applytoNorthernIreland,butnottothe

RepublicofIreland.

Regulation3oftheDPBRetouttheeligibilityrequirementin

detail,andtheeareummariedbelow:

Sl sAolepractitionerwillonlybeeligibletocarryonregulated

activitiewhere:

•he/heiamember;

•he/heholdapractiingcertificate;and

•hi/hermainbuineitheproviionofpublicpractice

accountancyervice.

REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK



18

pshs

Apartnerhipwillonlybeeligibletocarryonregulated

activitiewhere:

•atleatoneofthepartnerinthefirmiamember,and

eachpartnerwhoinotamemberientitledtopractie

accountancyandiubjecttotheregulationofACCA;

•thepartnerwhoarememberofACCAorofanother

deignatedprofeionalbody(ifany)manageorcontrolthe

firm;and

•themainbuineofthepartnerhipitheproviionofpublic

practiceaccountancyervice.

Wherethiregulationibeingappliedinconnectionwitha

limitedliabilitypartnerhip,thereferencetopartnerorpartner

houldbecontruedareferringtoamemberormemberofthe

limitedliabilitypartnerhip.

cs

Acompanywillonlybeeligibletocarryonregulatedactivitie

where:

•atleatonedirectorandcontrolleriamember,and

eachdirectorwhoinotamemberientitledtopractie

accountancyandiubjecttotheregulationofACCA;

•thedirectorwhoarememberofACCAorofanother

deignatedprofeionalbody(ifany)manageorcontrolthe

firm;and

•itmainbuineitheproviionofpublicpractice

accountancyervice.

rwl s’ x guld vs gsAllfirm’exemptregulatedactivitieregitrationarevalidonly

until31Decemberintheyearofiueandarerenewableannually.

tHe meaninG of inciDentaLTheregimeenableACCA,aaDPB,toallowitmemberfirm

tocarryoutalimitedrangeofinvetmentbuineactivitie,

withoutthoefirmhavingtoobtaindirectauthoriationfromthe

FsA,providedtheeactivitieare‘incidental’tothecorebuine

ofaccountancyervice.

Regulation3(5)oftheDPBRprovideguidanceonthefactorthatfirmhouldconiderwhenaeingwhetherthe

invetmentbuineactivityoractivitietheyareundertakingare

‘incidental’.Thiiaqualitativetetratherthanaquantitative

tet.The20%tetthatappliedundertheInvetmentBuine

Regulationi,therefore,notrelevant.

Inorderforafirmtoqualifyacarryingonregulatedactivitiein

anincidentalmanner:

i themainactivityofthefirmmutbetheproviionofpublic

practiceaccountancyerviceotherthanregulatedactivitie;

ii thecarryingonoftheregulatedactivitiemutnotbeiolated

fromotheractivitieofthefirmothatitiineffectaeparate

buine;and

iiithefirmdoenotcarryon,orholditelfoutacarryingon,

aregulatedactivityotherthanonewhichiallowedbythe

DPBRorinrelationtowhichthefirmianexemptperon.

Thefollowingadditionalrequirementarerelevantinaeing

whethertherequirementin(ii)aboveimet:

i regulatedactivitiehouldonlybeprovidedinconjunction

withtheprofeionalerviceofthefirm;

ii thefirmhoulddicloetoanexitingclientorapotential

clientthatthefirmianaccountancyfirmwhichmayonly

carryonalimitedrangeofinvetmentbuineactivitie;

iiithefirmmutnotreceivefromaperonotherthanitclient

anypecuniaryrewardorotheradvantage,forwhichitdoenot

accounttoitclient,ariingoutofitcarryingonofregulated

activitie(eebelow);

ivthecarryingonofregulatedactivitiemutbewithinthecopeofthegeneralethicalcodeortherulegoverningthe

profeion;and

v thefirmmutnotholdoutthattheexemptregulatedactivitie

arecarriedoutona‘tand-alone’baieparatefromthemain

activityofthefirm.

pecUniarY reWarD

Anypecuniaryrewardorotheradvantagefromaperonother

thantheclient,ariingoutofcarryingonexemptregulated

activitie,canonlybereceivedwherethememberorfirm

accounttotheclientforthatpecuniaryrewardorother

advantage.‘Accounttotheclient’mean:

•remittinganypecuniaryrewardoradvantage(ucha

commiionreceivedfromproductprovider)totheclient;or

•informingtheclientofthepecuniaryrewardoradvantageand

thathehatherighttorequirethefirmtopaytheamount

concernedtohim,thuallowingoffettingoftheamount

againtanyfeecharged;or

•obtainingtheclient’informedconent,inwriting,thatthe

firmmayretaintheparticularrewardoradvantageinquetion.

Inecuringtheconentoftheclient,theclientmutbeinformed

clearlyofthenatureofthepecuniaryrewardoradvantage,

includingitamountandfrequency,andthattheclienthatherighttorequirethefirmtopaytheamountconcernedtohim.

Eveniftheclientconent,theclientmutbeinformedeach

timeapecuniaryrewardoradvantageireceived(forexample,

eachtimeacommiionireceived,beitinitialcommiion

orrenewalcommiion),unletheamountandfrequencyare

predetermined(forexample,afixedcommiionreceivableonce

permonthoverthetermofalifeaurancepolicy).

Itinotconideredufficientforfirmin,ay,theletterof

engagementtomakeageneraldicloureregardingthereceipt

ofanypecuniaryrewardoradvantage,ortoobtainaclient’

generalconenttothefirm’retentionofuchpecuniaryreward

oradvantage.



19practice information HanDBooK REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK

WHat actiVitieS can firmS UnDertaKe?

TheactivitiethatACCAregulatedfirmareabletocarryout

undertheDPBRareetoutinregulation4(1).Thiregulation

ireproducedinfullinAppendix1.ACCAhaaloproducedaquetionandanwerguidewhichcovertheactivitiefirmmay

undertake.TheguidecanbedownloadedfromACCA’webiteat

www.glbl./dus/dbgs.d

Prohibitedactivitie

Thereareanumberofactivitiethatcannotbecarriedoutby

ACCAregulatedfirmundertheDPBRbecaueeither:

i theNon-ExemptActivitieOrderprohibituchactivitie,or

ii theDPBRprohibituchactivitie.

Therefore,nofirmmaycarryoutanyactivitythatfallwithinthe

litofprohibitedactivitieetoutinregulation4(2),whichi

reproducedinAppendix2ofthiection.

rguld gg wk d su d vyTheDPBRincluderegulationforfirmwihingtoundertake

regulatedmortgagework,long-termcareinuranceandother

inurancemediationactivitie.Theeregulationtemfrom

legilationandbecameeffectiveatdifferentdate,dependingon

thetypeofactivityconcerned:

•Regulatedmortgagecontract–31October2004

•Long-termcareinurance–31October2004

•Otherinurancemediationactivitie–14January2005

•Regulatedhomereverionplanandregulatedhomepurchae

plan–6April2007

Firmwihingtoundertaketheaboveactivitiehouldfamiliarizethemelvewiththeregulation(reproducedinfullinAppendix

3).Inparticular,theyhouldenurethat,beforeundertakingany

inurancemediationwork,they:

i holdprofeionalindemnityinuranceattheprecribedlevel

(ieatleat€1,120,200onaneachandeveryclaimbaiand

€1,680,300inaggregateperyear),and

ii havebeenplacedontheFsARegiter.

Pleaenotethatreferringaclienttoanotheradvierinotan

inurancemediationactivity,andithereforenotubjecttothe

newregulation.Providingmorepecificinformationtoaclient

and/ortoanintermediaryorinurancecompanyianinurance

mediationactivity,butiexemptfromtheincreaedprofeionalindemnityinurancerequirement.(Regulation4(4)litthe

activitiethatdonotcontituteinurancemediationactivity,and

ireproducedinAppendix4.)

conDUct of BUSineSS reGULationSChapter5oftheDPBRetoutanumberofconductofbuine

matterthatfirmneedtocomplywithinordertoprovideexempt

regulatedactivitie.Thichapteretout,underregulation5,6and7,guidancerelatingtoindependence,relationwithclient,

andcomplianceprocedure.

iddidus

Afirmmuttakereaonableteptoenurethatneitheritnor

anyofitagentoffer,give,olicitoracceptanyinducement

whichilikelyignificantlytoconflictwithanydutieofthe

recipientortherecipient’employerowedtoclientinconnection

withthefirm’exemptregulatedactivitie.

ml sWhereafirmhaamaterialinteretinatranactiontobe

enteredintowithorforaclientorarelationhipwhichgiverietoaconflictofinteretinrelationtouchatranaction,thefirm

mutnotknowinglyadvieinrelationtothattranactionunleit

takereaonableteptoenurefairtreatmentfortheclient.

ags wh hd sAfirmmutnotenterintoanyoftcommiionagreement

whereunderafirmwhichdealinecuritieonanadviorybai

receivegoodorerviceinreturnforanaurancethatnotle

thanacertainamountofuchbuinewillbeputthroughorin

thewayofanotherperon.

Afirmmayonlyacceptanappointmentaanotherperon’

appointedrepreentativewheretheappointingorganiationi

itelf,andatalltimecontinuetobe,freefromanyretrictionwhichmayreultinthefirmbeingcontrainedorinducedto

recommendtoaclienttranactioninomeinvetmentbutnot

other,withomeperonbutnotother,orthroughtheagency

ofomeperonbutnotother,unlecontrainedbylaw.

Afirmmayonlyadvieinrelationtothedipoalofpackaged

productaanindependentintermediaryand,fortheavoidance

ofdoubt,totheextentuchactivitiecontituteexempt

regulatedactivitie.

rls wh lsf d l usAfirmmutavoidanyrepreentationtoaclientthatitiauthoried

undertheActorregulatedbytheFsAorthattheregulatoryprotectionprovidedbytheActareavailable.Whereafirmi

conductinginurancemediationactivity,itiparticularlyimportant

thattheclientundertandthatthefirm’incluionontheFsA

regiterinottheameabeingauthoriedundertheAct.

Afirmmaymakeacommunicationwithanotherperonthati

deignedtopromotetheproviionofexemptregulatedactivitie

onlyifitcanhowthatitbelieveonreaonablegroundthatthe

communicationifairandnotmileading.

Afirmmuttakereaonableteptoenurethatanyagreement,

writtencommunication,notificationorinformationthatitgiveor

endtoaclienttowhomitprovideexemptregulatedactivitie

ipreentedfairlyandclearly.



20

Afirmmutenurethattheclientreceiveufficientinformation

abouttherecommendedinvetmentothathehaanadequate

baionwhichtoacceptorrejecttherecommendation.Thefirm

mutmakeclearthatitwillupplytheclientwithmoredetailedinformationifheorheorequire.

cls’ ghsAfirmmutnot,inanywrittencommunicationoragreement,

eektoexcludeorretrictanydutyorliabilitytoaclientthatit

haundertheAct,orundertheregulatoryytem.

similarly,unleitireaonabletodoointhecircumtance,a

firmmutnot,inanywrittencommunicationoragreement,eek

toexcludeorretrict:

•anyotherdutytoactwiththekill,careanddiligencewhichi

owedtoaclientinconnectionwiththeproviiontohimorher

ofexemptregulatedactivitie;or

•anyliabilityowedtoaclientforfailuretoexerciethedegree

ofkill,careanddiligencewhichmayreaonablybeexpected

ofitintheproviionofexemptregulatedactivitie.

Afirmmutnoteekunreaonablytorelyonanyproviion

eekingtoexcludeorretrictanyuchdutyorliability.

chgs

Theamountafirmchargeaclientfortheproviionofexempt

regulatedactivitiemutnotbeunreaonableinthecircumtance.

cl gs

Whereafirmprovideexemptregulatedactivitietoaclient,

thewrittenagreementwhichmutbeenteredintobeforeany

buineiconductedmutetoutinadequatedetailthebaionwhichthoeerviceareprovidedandmutinclude,interalia,

atatementofthefollowing:

1thefirm’nameandaddre;

2thatthefirmiregulatedintheconductofexemptregulated

activitiebyACCA(ifafirmmakeareferencetotheFsAany

uchtatementhouldnotleadtheclienttouppoethatthe

FsAhadirectregulatoryreponibilityforthatfirm);

3thenatureoftheregulatedactivitieprovidedbythefirm

andthefactthattheearelimitedincopeand,where

appropriate,thefactthatthefirmiuingtheerviceofa

permittedthirdparty;

4wherethefirmprovideexemptregulatedactivitieotherthaninurancemediationactivity,thatthefirminotanauthoried

peron;

5thattheclientwillnothaveaccetoanycompenation

chemeinrepectofthefirm’ervice;

6theclient’invetmentobjective;

7anyretrictionontheinvetmentwhichmaybeacquiredor

thattherearenoretriction;

8thenatureofthecomplaintandredreprocedureavailable

toclient;and

9thebaionwhichthefirmitochargeforitervice.

Wherethefirmprovideinurancemediationactivityervice,

thewrittenagreementmutaloprovidethefollowingtatement

inawaythaticlear,fairandnotmileadingandnole

prominentthananyotherinformationprovidedtotheclientattheametime:

‘WearenotauthoriedbytheFinancialserviceAuthority.

However,weareincludedontheregitermaintainedbythe

FinancialserviceAuthorityothatwecancarryoninurance

mediationactivity,whichibroadlytheadviingon,ellingand

adminitrationofinurancecontract.Thipartofourbuine,

includingarrangementforcomplaintorredreifomething

goewrong,iregulatedbytheAociationofCharteredCertified

Accountant.TheregitercanbeacceedviatheFsAwebiteat

www.fa.gov.uk

Theagreementmutalotate:

1whetherthefirmhaaholding,directorindirect,repreentingmorethan10%ofthevotingrightorofthecapitalinagiven

inuranceundertaking,and

2whetheragiveninuranceundertakingorparentundertaking

ofagiveninuranceundertakinghaaholding,director

otherwie,repreentingmorethan10%ofthevotingrightor

ofthecapitalinthefirm.

Whereafirmactaadicloedagentforanamedclientwith

orthroughapermittedthirdpartyorrelieupontheadviceofa

permittedthirdpartyinactingfororadviingaclient,thefirm

mutinformthepermittedthirdpartyinwritingofthatfactand

thataccordinglythepermittedthirdpartywillbereponibleto

theclientinrepectofitactivitieoradvice.Whereafirmitreatingaclientaanexecution-onlyclientitmut:

a notifytheclientaccordinglyandmutobtainawritten

acknowledgementfromtheclient.Inaddition,written

evidenceofpecificintructionfromexecution-onlyclient

mutbemade,includingwrittenconfirmationthattheclient

didnoteekorreceiveadvicefromthefirmregardinga

tranaction.Thetranactionmuthavebeenenteredintoon

theclient’explicitintruction;and

bhavereaonablyaeedandconcludedthattheclientcanbe

expectedtoundertandtherikinvolvedinthetranaction.

Copieofthewrittennotificationandacknowledgementand

evidenceofintructionandaementreferredtointhiregulationarerequiredtoberetainedforixyear.

css busss

Whereafirmwithdrawfromprovidinganyexemptregulated

activitietoclient,thefirmmutenurethatanyuchbuine

thatiouttandingiproperlycompletedoritranferredto

anotherfirm.Inaddition,wheretheinteretofclientwouldbe

ignificantlyaffectedbythedeathorincapacityofanindividual

withinthefirm,thefirmmutmakearrangementtoprotectthe

interetofthoeclientinthatevent.

i bu h Afirmmay,inallitbuineletter,noticeandother

publicationwhichrelatetoitexemptregulatedactivitie,tatethatitiregulatedtoconductexemptregulatedactivitie

byACCA.Anyuchtatementhouldalocomplywiththe

requirementetoutabove.



21practice information HanDBooK REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK

Busss sy

ACCAhaagreedthefollowingwordingwiththeFsAthatfirm

mayueonbuineletter,noticeandotherpublication:

‘Regulatedforarangeofinvetmentbuineactivitiebythe

AociationofCharteredCertifiedAccountant’.

Thiianoptionaltatement.

i bu s suTheDPBRaloincludedetailedcommunicationrequirement

inrepectoffirmcarryingoninurancemediationactivity,

includingthemethodofcommunicating.

cl dusclAfirmmuttakereaonabletep,includingtheetablihment

andmaintenanceofprocedure,toenurethatitofficerand

employeeactinconformitywithallregulationapplicabletotheconductofexemptregulatedactivitie.

rds

Afirmmutenurethatufficientinformationirecordedand

retainedaboutitexemptregulatedactivitieaineceary

fortheproperconductofthatbuineandtoenableitto

demontratecompliancewiththeregulatoryytem,including

butnotlimitedtorecord:

•ofthereceiptofincomefromtheclientinrepectofexempt

regulatedactivitie;

•ofthereceiptofcommiion,oranyotherpecuniary

rewardoradvantage,fromproductprovideroranythird

partie,whichareadequatetodemontratethatthefirmhaaccountedtotheclientforthecommiionorotherpecuniary

rewardoradvantage;

•whichareadequatetodemontratethatthefirmhacarried

ononlyexemptregulatedactivitie;and

•ofcomplaintreceivedandactiontaken.

Anyrecordrequiredtobeproducedbythiregulationhouldbe

retainedforaminimumofixyear.

clsAfirmmuthaveproceduretoenure:

•theproperhandlingofcomplaintfromclientandthird

partierelevanttoitcompliancewiththeregulatoryytem;

•thatanyappropriateremedialactiononthoecomplainti

promptlytaken;and

•wherethecomplaintinotpromptlyremedied,thattheclient

iadviedofanyfurtheravenueforcomplaintavailabletohim

orherundertheregulatoryytem.

Thoeproceduremutincludeproviiontoenurethat:

• complaintareacknowledgedwithinareaonabletimeoftheir

beingreceivedandinanyeventwithin14day;

•whereacomplainthabeenmadeorally,theletterof

acknowledgementtatethemember’undertanding

atothenatureofthecomplaintbeingmadeandinvite

thecomplainanttoconfirminwritingtheaccuracyofthat

tatement;and

•complaintareinvetigatedbyaperonofufficient

experience,eniorityandcompetencewho,wherepoible,

wanotdirectlyinvolvedintheparticularactoromiion

givingrietothecomplaint.

cuyFirmhallenterintoacontinuityagreementinaccordancewith

regulation11ofTheCharteredCertifiedAccountant’Global

PractiingRegulation2003.

nAfirmthatbecomeanauthoriedperontoconductany

regulatedactivitieorbecomeanappointedrepreentativeof

anotherorganiationhouldnotifyACCAimmediatelyinwriting

ofthichangeoftatu.

oVerSeaS BrancHeS or officeS anD JUriSDictionSTheFinancialserviceandMarketAct2000regulate

invetmentbuineconductedintheUK.Firmwhichhavea

branchorofficeoutidetheUK,ChannelIlandandIleofMan

areeligibletoundertakeexemptregulatedactivitiefromtheUK

branchoroffice.

ish ivs ids a 1995Afirmwihingtoundertakeactivitiewithinthecopeofthe

IrihInvetmentIntermediarieAct1995mutbeappropriately

authoriedbyanApprovedProfeionalBody.ACCAiableto

authoriefirmthroughthemechanimofaninvetmentbuine

certificate(Ireland).Pleaeeeection4forfurtherinformation.



22

appenDiX 1ex guld vs

TheactivitiethatACCAregulatedfirmareabletocarryout

undertheDPBRareetoutinregulation4(1).Thiregulationireproducedbelow.

1 ex guld vssubjecttoregulation4(2)and4(3),allfirmthatareeligibleto

conductregulatedactivitieunderregulation3maycarryon,or

agreetocarryon,anyoftheactivitieetoutinthiregulation

(butnootheractivitycontitutingregulatedactivitie).

Inrelationtodeignatedinvetment,contractoflong-term

inurance,contractoflong-termcareinurance,regulated

mortgagecontract,regulatedhomereverionplanand

regulatedhomepurchaeplan,firmmaycarryon:

a dealingaagentininvetmentwithinarticle21totheRegulatedActivitieOrder:

i adicloedagentforanamedclientwherethetranaction

icarriedoutwithorthroughapermittedthirdparty;or

iiwheretheclientianexecution-onlyclientexceptin

repectofpeniontranferoropt-outbuineandpenion

fundwithdrawal;or

bmakingarrangementwithinarticle25(invetmentdeal),

25A(regulatedmortgagecontract),25B(regulatedhome

reverionplan)and25C(regulatedhomepurchaeplan)of

theRegulatedActivitieOrderwhere:

i thefirmactadicloedagentforanamedclientandthe

arrangementarecarriedoutwithorthroughapermittedthirdparty;or

ii thearrangementaremadeinconequenceofadvice

giveninrelationtheretobyapermittedthirdpartywhich

ifobtainedbythefirmhabeenobtainedbyitactinga

dicloedagentforanamedclient;or

iiitheclientianexecution-onlyclientexceptinrepectof

peniontranferoropt-outbuineandpenionfund

withdrawal;or

ivthearrangementareforthedipoalofapackaged

productbyorforaperonalrepreentative;or

v thetranactioninvolvetheacquiitionordipoalofaninvetmentbyacceptinganofferorrepondingtoan

invitationmadetothepublicortotheholderofecuritie

ofanybodycorporateoranyclathereoforbyexerciing

anyrightconferredbyaninvetmenttoacquire,dipoeof

orconvertaninvetment;or

c managinginvetmentwithinarticle37oftheRegulated

ActivitieOrderwhere:

i thatactivityiperformedonanon-dicretionarybai;

ii thefirmoranofficeroremployeeofthefirmholdatrutee

appointmentandactonadicretionarybai;and

aanoremunerationireceivedforthedicretionary

managementoftheinvetmentinadditiontothe

remunerationwhichthefirmortheofficeroremployee

ofitmayreceiveinconnectionwiththeiractingpuruant

tothetruteeappointment;or

bbanydeciiontobuy,ell,ubcribefororunderwrite

aparticularinvetmentaretakeninaccordancewith

theadviceofapermittedthirdpartywhich,ifobtained

bythefirm,habeenobtainedbyhimorithavingdicloedthebaionwhichheoritiacting;or

dadviingwithinarticle53(invetment),article53A(regulated

mortgagecontract),article53B(regulatedhomereverion

plan)andarticle53C(regulatedhomepurchaeplanofthe

RegulatedActivitieOrderwhere:

i uchadvicecontitutetheadviceofapermittedthird

partyand,ifobtainedbythefirm,habeenobtainedbyit

actingadicloedagentforanamedclient;or

ii inthecaeofinvetmenttheadvicedoenotrelateto

litedecuritie;or

iiiuchadviceconcernthedipoalofapackagedproductforaperonalrepreentative;or

ivuchadvicecontitutearecommendationnottobuyor

ubcribeforinvetment,orarecommendationtovary

thetermof,nottobuyornottoubcribeforregulated

mortgagecontract,regulatedhomereverionplanand

regulatedhomepurchaeplan,orrelatetothedipoal

ofinvetmentotherthanrightunderaperonalpenion

chemeorrelatetotheacquiitionofinvetmentiued

byanunquotedcompany;or

v uchadvicecontituteadvicetoclienttoeekfurther

informationorclarificationfromtheauthoriedperon;or

viuchadvicecontituteadvicetoclientonthemeritofadvicegivenbyanappropriatelyauthoriedorexempt

peronprovidednorecommendationimadethattheclient

purchaeaparticularinvetmentorregulatedmortgage

contract,regulatedhomereverionplanandregulated

homepurchaeplan,otherthanthatrecommendedbythe

authoriedorexemptperon;or

e theproviionofanydeignatedinvetmentbuineto:

i aniuer,holderorownerofinvetmentwithregard

totheoffer,iue,underwriting,repurchae,exchange

orredemptionof,orthevariationofthetermof,the

invetment,oranyrelatedmatter;or

ii anycompanyorpartnerhipwhichrelatetothemannerinwhich,orthetermonwhich,ortheperonbywhom,

anybuine,activitieorundertakingrelatingtoit,or

anyaociate,aretobefinanced,tructured,managed,

controlled,regulatedorreportedupon;or

iiianycompanyinconnectionwithapropoedoractual

take-overbyoronbehalfofthatcompanyoritholding

companyorubidiaryoramerger,de-merger,re-

organizationorrecontructioninvolvinganyinvetment

iuedbyuchacompany;or

ivanyhareholderorpropectivehareholderofacompany

etablihedortobeetablihedforthepurpoeofeffecting

atake-over.




Inrelationtocontractofinuranceotherthancontractof

long-terminuranceandcontractoflong-termcareinurance,

firmmaycarryonthefollowinginurancemediationactivitie

providedtheyhavefirtcompliedwithregulation4(3):

f dealingaagentinthemannerpecifiedbyarticle21ofthe

RegulatedActivitieOrder;or

gmakingarrangementinthemannerpecifiedbyarticle25of

theRegulatedActivitieOrder;or

haitingintheadminitrationandperformanceofcontractof

inurancewithinarticle39AoftheRegulatedActivitieOrder;

or

i adviinginthemannerpecifiedbyarticle53oftheRegulated

ActivitieOrder.

appenDiX 2rgul 4(2) h DpBrs

2 phbd vsNofirmmaycarryoutanyactivitythatrelateto:

a acceptingdepoitofakindpecifiedbyarticle5ofthe

RegulatedActivitieOrder;

beffectingandcarryingoutcontractofinuranceapecified

byarticle10oftheRegulatedActivitieOrder;

c dealingaprincipalininvetmentwithinthemeaningof

article14oftheRegulatedActivitieOrder;

detablihing,operatingorwindingupacollectiveinvetmentcheme;actaatruteeofanauthoriedunittrutcheme

oractathedepoitoryoroledirectorofanopen-ended

invetmentcompanyapecifiedwithinarticle51ofthe


e etablihing,operatingorwindingupaperonalpenion

chemeortakeholderpenionchemewithinarticle52of

theRegulatedActivitieOrder;

f recommendationtobuyorubcribeforecuritieor

contractuallybaedinvetmentwhichareadmittedtodealing

onanexchangeorothermarketwithinarticle53ofthe


g adviingonthemeritofenteringintoaregulatedmortgagecontractwithinarticle53A,aregulatedhomereverionplan

withinarticle53Bandaregulatedhomepurchaeplanwithin

article53CoftheRegulatedActivitieOrder;

hadviingonthemeritofenteringintoorvaryingthetermof

acontractoflong-terminurance,acontractoflong-termcare

inuranceorotherinurance-baedinvetmentinthemanner

pecifiedbyarticle53oftheRegulatedActivitieOrder;

i managingtheunderwritingcapacityofaLloyd’yndicateaa

managingagentatLloyd’apecifiedunderarticle57ofthe


j enteringaproviderintoafuneralplancontractwithinarticle

59oftheRegulatedActivitieOrder;

k enteringintooradminiteringaregulatedmortgagecontract,

regulatedhomereverionplanandregulatedhomepurchae

planwithinarticle61,63Band63FoftheRegulated

ActivitieOrder;

l adviingaperontobecomeamemberofaparticular

Lloyd’yndicate;

mholding,orreceiving,anymoneybelongingtoaclientinthe

coureofcarryingonexemptregulatedactivitieforaclient

whichinotimmediatelydueandpayableondemandtothe

firmforitownaccount;

nactingaaperonalpenionchemeortakeholderpenion

chememanager;

omanaginginvetmentaaplanmanagerofaPEPoranIsA;

pcarryingontheactivityofafeguardingandadminitering

aetwithinarticle40oftheRegulatedActivitieOrder;

qcarryingonanyinvetmentactivityrelatingtoderivative;

r promoting,iuingorapprovinganyinvetment

advertiement;

undertakinganybuineinvolvingpeniontranferand

penionfundwithdrawal;

t enteringintoabrokerfundarrangement;

uponoringoradviingoniueofecuritieonthestock

Exchange,AlternativeInvetmentMarket(AIM)orOff

Exchange(OFEX).

Inadditiontotheprohibitiononfirmfromcarryingoutanyoftheaboveactivitie,firmmaynotagreetocarryonanyactivity

containedinregulation4(2).

Thilitwillbereviewedfromtimetotimeandwillberevied

aneceary.


3 Sl qus s dg y , gg y , su d vy

Afirmwihingtocarryoninurancemediationactivity(iethe

activitieetoutinregulation4(1)(a),(b)and(d)inrelationtoinurance-baedinvetmentandtheactivitieetoutin

regulation4(1)(f)to(i))mut:

a effectprofeionalindemnityinurancewithminimumlimit

ofindemnityequivalent(atthetimethepolicyieffectedor

renewed)to1,120,200euroinrelationtoeachandevery

claimand1,680,300eurointheaggregateperyearfor

allclaim,exceptwheretheactivitycomprieproviding

informationtoapolicyholderorpotentialpolicyholderora

permittedthirdpartyinthecontextofmakingarrangement

withaviewtotranactioninthemannerpecifiedbyarticle

25(2)oftheRegulatedActivitieOrder;

bwherethefirminotaolepractitioner,nominatean

individualorindividualwithinthemanagementofthefirm

whowillbereponibleforuchactivitie;

REGIsTERINGFORINVEsTMENTBUsINEssINTHEUK



24

c enurethatareaonableproportionoftheperonwithin

themanagementtructureofthefirmwhoarereponible

forinurancemediationactivityandallotherperon

directlyinvolvedininurancemediationactivitydemontratetheknowledgeandabilitynecearyfortheperformanceof

theirdutie;

dwherethefirmintendtoetablihabranchin,orprovide

crobordererviceto,anothertateoftheEuropean

EconomicArea(EEA),atifytheconditioninparagraph19

or20(aappropriate)ofPartIIIofschedule3totheAct;

e atifytheconditionthatnoperonwithinthemanagement

tructureofthefirmorwithinthetaffdirectlyinvolvedin

inurancemediationactivityianundichargedbankruptor

haacriminalconvictionforanyeriouoffencerelatingto

financialactivitieorcrimeagaintproperty;

f regiterwiththeAociationforinurancemediationactivity;and

g beforecarryingonuchactivitie,enurethatthefollowing

detailappearontheFsARegiterandhavebeenupdated,a

informedbythefirmtotheAociation:

i thefirm’nameandaddre;

ii detailoftheindividualreferredtowithinregulation4(3)

(b);and

iiiwhererelevant,eachEEAtateinwhichthefirmha

etablihedabranchoriprovidingcroborderervice

undertheInuranceMediationDirective.

AfirmwhichundertakeinurancemediationactivityandwhoedetaildonotappearontheFsARegiterwillbecommittinga

criminaloffence.WhiletheAociationwillpaafirm’detail

totheFsAapartofitregulatoryobligation,itithefirm’

reponibilitytoenurethatitdetailappearontheFsARegiter

andarecorrectanduptodate.


4 avs whh d su su d vyThefollowingactivitiedonotcontituteinurancemediationactivity

and,auch,firmarefreetocarryonuchactivitieatheydonotfallwithintheDeignatedProfeionalBodyRegulation:

a adviingingeneraltermontheneedfororlevelofinurance

coverorprovidinginformationtothepolicyholderorpotential

policyholderofageneralnatureoninuranceproduct,

providedthatnorecommendationimadeofparticular

contractofinurance,productproviderorpermittedthird

partieotherthanindependentfinancialadvier;

bcarryingoninurancemediationactivitywhereallofthe

followingconditionaremet:

i theprincipalactivityoftheperoniotherthaninurance

mediationactivity;

ii thecontractofinuranceinotacontractoflong-terminurance;

iiithecontractofinurancehaatotalduration(orwould

haveatotaldurationwereanyrighttorenewconferredby

thecontractexercied)offiveyearorle;

ivthecontractofinurancehaanannualpremium(or,where

thepremiumipaidotherwiethanbywayofannual

premium,theequivalentofanannualpremium)of500

euroorle,ortheequivalentamountinothercurrency;

v theinurancecovernon-motorgoodortravelinurance;

vithecontractofinurancedoenotcoveranyliabilityrik

(except,inthecaeofacontractwhichcovertravelrik,

wherethatcoveriancillarytothemaincoverprovidedby

thecontract);

viitheinuranceicomplementarytothenon-motorgoodor

erviceuppliedbyanyprovider;and

viiithecontractofinuranceiofuchanaturethattheonlyinformationneededithecoverprovided;

c carryingoninurancemediationactivitynotbywayofbuine.

The‘bywayofbuine’tetcomprietwoelement:

i whethertheperonreceiveremunerationfortheactivity

(whethermonetary,non-monetaryorintheformofan

expectationofeconomicbenefit);

iiwhethertheperonpuruetheactivitywithadegreeof

regularityorforcommercialpurpoe.




4 pplying or a fr’sinvestent businesscertifcate (reland)

ACCAwagrantedfullApprovedProfeionalBody(APB)tatu,underthe

InvetmentIntermediarieAct1995(IIA),bytheCentralBankofIreland(CBI)

on11December1998.

introDUctionAPBtatuenableACCAtoauthorie,throughtheiueofan

ACCAfirm’invetmentbuinecertificate(Ireland),certain

practiingfirmtoconductpecificretrictedinvetmentactivitie.

Thelegilationreferredtointhiectionithatapplicableinthe

RepublicofIreland.

AnapplicationformcanbefoundonACCA’webiteat

www.glbl./bs/ssl_sddsorrequetedfromAuthoriation(tel:+44(0)1415344175).

Do YoU neeD an inVeStment BUSineSS certificate(ireLanD)?

TheCharteredCertifiedAccountant’IrihInvetmentBuine

Regulation1999aamended(IIBR)laydownthecondition

fortheiueof,andtheongoingrequirementforholding,

invetmentbuinecertificate(Ireland),andprovidethebai

ofACCA’compliancewiththeIIA.TheIIBRareincludedinthe

ACCA Rulebook.

UnderthetermoftheIIA,itianoffencetoprovideinvetment

buineerviceorinvetmentadviceinIrelandwithout

authoriation.TheCBIovereetheregulatoryytemunder

theIIA(previoulytheFinancialRegulator).However,italo

recognieotherregulatorybodieanddelegatereponibilityto

themforauthoriationandregulationoftheirmemberfirm.

IfyouarenotalreadyauthoriedbyACCAordirectlyauthoried

bytheCBI(aanInvetmentBuineFirm,MultiAgency

IntermediaryorAuthoriedAdvior),youmayneedtoeek

authoriationdependingontheactivitiethatyourfirmcarrie

out.ACCAoffertwodifferentcategorieofauthoriationdependingontheactivitiethefirmigoingtoundertake.The

categoryofauthoriationwillaloimpactonthecompenation

arrangementthatapplytothefirm.

cgy B uhs

YourfirmwillneedcategoryBauthoriationwhereitcarrie

oninvetmentbuineerviceorinvetmentadvice(defined

below)whichmayinclude:

•receivingortranmittingorderincertaininvetmentor

inuranceproduct;oractingaadepoitbroker;or

•referringaclienttoathirdpartyprovidinginvetment

buineervice.

AcategoryBfirmmaytranmitorderonlytocertainproduct

producerinthecoureofprovidingtheaboveervice.

cgy a uhsInadditiontotheactivitiecarriedoutbyacategoryBauthoried

firm,categoryAauthoriedfirmcanexecuteorderinrelationto

invetmentintrument(definedbelowunder‘Productcoveredby

theIIA’),otherthanforownaccount.Inaddition,thefirmwouldbe

abletopromoteinglecompanyBEschemeorafilmcompany.

NeithercategoryBnorcategoryAfirmmayholdclient’fund

orecuritie,butmayacceptnon-negotiablechequeorimilar

intrumentmadepayabletotheproductproviderforthe

purpoeofthereceiptandtranmiionoforder.

Ifyourfirmintendtocarryonanyoftheabovelitedactivitie,it

willneedtoapplyforaninvetmentbuinecertificate(Ireland),

categoryAorcategoryB.

Ifyourfirmcarrieonanyoftheabovelitedactivitiewithout

beingauthoriedbyACCA,anotherAPBordirectlybytheCBI,

yourfirmiperformingaprohibitedactivityandiinbreachof

ection9(1)oftheIIA.

Inviewofthecomplexityofthelegilationandthebroadrangeofactivitiethatfallwithinthedefinitionofinvetmentbuine

erviceundertheIIA,ACCArecommendthatalleligiblefirm

areauthoried.

APPLYINGFORAFIRM’sINVEsTMENTBUsINEssCERTIFICATE(IRELAND)



26

Theeligibilitycriteriaforinvetmentbuinecertificate(Ireland)

areetoutlaterinthiection.

inVeStment BUSineSS SerViceS coVereD BY tHe iia/ inVeStment aDVicepdus vd by h iia

TheActdefineinvetmentintrumentverybroadly.Fulldetail

ofwhatcomeunderthedefinitionofinvetmentintrumentcan

befoundinRegulation4(2)oftheIIBR,which(aareultofthe

enactmentoftheInuranceAct2000)includeinurancepolicie

includinglife,penion,endowmentandgeneralinurance

policieuchahoueandmotorvehicle.

pdus vd by h iia

InvetmentinpropertyareoutidethecopeoftheIIA,unle

theinvetmentinvolvehareinaproperty-owningcompany.

ThereiproviionintheIIAforadditionalintrumentto

beaddedtothelitofproductthatarewithinitcopeby

miniterialorder.Non-authoriedfirmhould,therefore,

regularlycheckthatparticularproductthattheyareadviingon,

orarranging,havenotcomewithinthecopeoftheAct.

ivs busss svsTheIIAlittheactivitiethatcontituteinvetmentbuine

ervice.ACCAiabletoauthoriefouroftheeactivitie:

•receivingandtranmittingorderforinvetmentintrument

•executingorderonbehalfofinvetor

•actingaadepoitbroker

•undertakinginurancemediationactivitie.

ACCAcannotauthoriefirmtocarryouttheremainingeven

invetmentbuineervice:

•dealinginoneormoreinvetmentintrumentforown

account

•managingportfolioofinvetmentintrumentordepoiton

adicretionarybai

•underwritinginrepectofiueofoneormoreinvetment

intrumentortheplacingofuchiueorboth

•actingaadepoitagent

•adminiteringcollectiveinvetmentcheme

•carryingoutcutodialoperation

•actingaamanagerofadeignatedinvetmentfund.

Orthefollowing:

•carryingoutanyactivityrelatingtoderivative

•carryingonanyotheractivitycontitutingtheproviionof

invetmentbuineerviceorinvetmentadvicewithinthe

meaningofection2oftheIIAotherthananactivityfalling

withinIIBR4(2)

•holdingorreceivinganymoneybelongingtoaclientinthe

coureofcarryingoninvetmentbuineerviceforaclient

whichinotimmediatelydueandpayableondemandtothe

firmforitownaccount.

AnyACCAfirmthatundertaketheeactivitiehouldeek

authoriationdirectlyfromtheCBI.

ivs dv

ACCAiabletoauthoriefirmtogiveinvetmentadvice.Thi

idefinedathegivingof,orofferingoragreeingtogive,toany

peron,adviceonthepurchaing,elling,orubcribingforaninvetmentintrument,oronthemakingofadepoitoronthe

exerciingofanyrightconferredbyaninvetmentintrument

toacquire,dipoeof,orconvertaninvetmentintrumentor

depoit.Thedefinitionaloincludethegivingof,orofferingor

agreeingtogive,toanyperon,adviceonchoiceofaperon

providinginvetmentbuineervice.Thiincludeadviceon

BEsinvetmentandfilminvetment.

Advicegiventoundertakingoncapitaltructure,indutrial

trategyandrelatedmatterandadvicerelatingtomerger

andthepurchaeoraleofundertakingarenotincludeda

invetmentadvice.

Gl xTheIIAexemptthefollowingfromthedefinitionofinvetment

advice:

‘Advicegivenbyperoninthecoureofthecarryingonof

anyprofeionorbuine...wherethegivingofuchadvice

ariefromotheradvicegiveninthecoureofcarryingonthat

profeion...andthatadviceinotremuneratedeparately....’

Althoughthe‘ariefrom’tetireaonablyeaytomeet,the

‘remuneratedeparately’apectimoredifficult.Accountantare

eenabeingpaidonatimebai.Ifyoudonotmentionany

invetmentadviceonyourfeenote,itmaynotmean,legally,that

youwerenotpaidforthatadvice.

conDitionS for tHe iSSUe of an inVeStmentBUSineSS certificate (ireLanD)

TheIIBRlaydowntheconditionforthegranting,and

ubequentrenewal,ofinvetmentbuinecertificate(Ireland).

Withinpartnerhip/incorporatedfirm,anominatedcontact

partner/director(whomutbeamemberofACCA)willhave

overallreponibilityforthefirm’compliancewiththecondition

detailedbelow,andheorhemuttatehiorherfirm’

compliancewiththeerequirementintherenewalform.

elgblyThedetailedrequirementaregiveninregulation3oftheIIBR.

Aolepractitionerhallbeeligibleforaninvetmentbuine

certificate(Ireland)ifheorheiamemberofACCA,ifheorheholdapractiingcertificate,andifhiorhermainbuinei

thepublicpracticeofaccountancy.Thefirmmutbeolventand

inaddition,forcategoryAauthoriation,itmutholdminimum

netbuineaetof€10,000.

Apartnerhipwhoemainbuineithepublicpracticeof

accountancyieligibleforaninvetmentbuinecertificate

(Ireland)ifitpartnerareeither:

•memberofACCA,ormemberofotherAPB(ucha

CharteredAccountantIreland),or

•otherwieentitledtopractieaccountancyandregulatedby

anotherprofeionalbody.



27practice information HanDBooK APPLYINGFORAFIRM’sINVEsTMENTBUsINEssCERTIFICATE(IRELAND)

Inaddition:

•allpartnerwhoarenotmemberofACCAmutgive

undertakingtoabidebyACCA’regulation;•atleatoneofthepartnerinthefirmmutbeanACCA

member;

•thoepartnerwhoarenotmemberofACCAorofanother

APBhouldnotformamajorityofthepartnerofthefirm;

•allpartnerwhoareACCAmembermutholdpractiing

certificatevalidinIreland,andeachpartnerwhoinot

anACCAmembermutholduchotherqualificationa

ideemedadequatebytheAdmiionandLicening

Committee;and

•thepartnerhipmutbeolventandinaddition,forcategory

Aauthoriation,itmutholdminimumnetbuineaetof

€10,000.

Acompanywhichhaaitmainbuinethepublicpracticeof

accountancywillbeeligibleforaninvetmentbuinecertificate

(Ireland)ifitdirectorandcontrollerareeither:

•memberofACCA,ormemberofotherAPB(ucha

CharteredAccountantIreland),or

•otherwieentitledtopractieaccountancyandregulatedby

anotherprofeionalbody.

Inaddition:

•alldirectorandcontrollerwhoarenotmemberofACCA

mutgiveundertakingtoabidebyACCA’regulation;

•atleatoneofthedirectorinthefirmmutbeanACCA

member;

•thoedirectorwhoarenotmemberofACCAorofanother

APBhouldnotformamajorityoftheboardofdirector;

•alldirectorwhoareACCAmembermutholdpractiing

certificatevalidinIreland,andeachdirectorwhoinotan

ACCAmembermutholduchotherqualificationaideemed

adequatebytheAdmiionandLiceningCommittee;

•thecompanymutbeolvent,andinaddition,forcategoryA

authoriation,itmutholdminimumnetbuineaetof

€10,000.

Acontrolleriaperonwhoeitheraloneorwithanyaociate

control15%ormoreoftherighttovoteonthemajorityof

matteratgeneralmeeting.

ivs busss ls

ACCAionlyabletoauthoriefirmwhoemainbuinei

thepublicpracticeofaccountancy.Where20%ormoreofa

firm’totalturnoveronanannualbaiderivefrominvetment

buineerviceorinvetmentadvice,thifactmutbenotified

toACCAwhowillreferthemattertotheCBIforitconideration.

Inadditioninvetmentbuineerviceand/orinvetment

advicemutbeprovidedinanincidentalmanner,notiolated

fromtheotheractivitieofthefirminamannerwhichwould

uggetthatitiaeparatebuine.

cs sh gsDependingontheircategoryofauthoriation,firmmut

makecontributiontotheInvetorCompenationCompany

Limited(ICC).ThicompanyietablihedundertheInvetorCompenationAct1998andiindependentofACCA.

ThecompenationlevyforacategoryBfirmidetermined

bythefirm’incomeandthelevyforacategoryAfirmi

determinedbythenumberofeligibleclient.Firmhould

contactICCfordetailofthecontributionrequiredat:The

InvetorCompenationCompanyLimited,c/oTheCentral

BankofIreland,POBox11517,spencerDock,NorthWall

Quay,Dublin1.Tel:+353(0)12244955.Furtherdetail

aboutthecurrentcontributionratecanalobefoundat

www.vss./ubls.h

mu y qusTheminimumcompetencyrequirementwerefirtpublihed

on25July2006.Theeintroducedacompetencyframework,deignedtoetablihminimumtandardforregulatedentitie.

Firmarerequiredtoenurethatindividualwhoprovideadvice

orwhoundertakecertainpecifiedactivitieontheirbehalf

acquirethecompetencieetoutintherequirement.

Therequirementwerereviewedandupdatedduring2011.The

newMinimumCompetencyCode2011cameintoeffecton1

December2011,andiavailableontheCBIwebiteat h://www.lbk./gul/sss/u-

y-q/pgs/dul.sx

pssl idy isuAfirmwihingtocarryoninurancemediationactivityinIreland

mutholdprofeionalindemnityinurance(PII)inaccordancewiththerequirementoftheEuropeanCommunitie(Inurance

Mediation)Regulation2005.Currently,firmundertaking

inurancemediationworkmutholdatleat1,000,000euro

inrelationtoeachandeveryclaimwithinacalendaryearand

1,500,000euroinaggregate.TheeminimumPIIlimitare

ubjecttochangefromtimetotimeandmembermutenure

thattheyholdtheappropriatelevelofcoveratthetimethepolicy

ieffectedorrenewed.

mg

ACCAwillmonitorandenforceitbye-lawandregulationby

analyingpractitioner’returnandcarryingoutmonitoringviit.

Afirtmonitoringviithouldtakeplacewithinthreeyear.Afive-

yearmonitoringcyclewillbeimplementedfollowingthiinitialviit.Viitmaybemorefrequent,however,aareultofcomplaint

oraareultofevidenceofnon-complianceatafirtviit.

DssAuthoriedfirmmutincludethefollowingtatementontheir

buinetationery:

‘AuthoriedtoundertakeinvetmentbuineerviceinIreland

bytheAociationofCharteredCertifiedAccountant’.

Firmholdinginvetmentbuinecertificate(Ireland)are

requiredtocomplywithbaicrequirementof‘goodpractice’a

laidoutinACCA’IIBR(eg‘knowyourclient’).



28

GUiDe to tHe proViSion of inVeStment BUSineSSSerViceS anD inVeStment aDVice anD compLiance

WitH acca’S iriSH inVeStment BUSineSS reGULationS

ACCA’IIBRaredeignedtoprotectboththeinteretofclientandthepractiingaccountant.Therulewillnotinany

wayimpingeontheactivitieofapracticethatiproviding

goodprofeionalinvetmentadvice,otherthantoimpoean

obligationtodocumenttheworkperformed.

Theruleandguidanceonexpectedgoodpracticeare

ummariedbelow.However,ifyouaregoingtoundertakeIIA

buine,youhouldreferdirectlytotheIIBR,athedetail

hereinotufficienttoenurefullcompliance,andfailureto

implementcertainoftherulewillcontituteacriminaloffence

undertheIIA.

cl y

ACCA’IIBRdonotallowpracticetohandleinvetmentbuineclientmoney.Firmmaytilldealwithclienttax

payment,etcthroughtheirclientbankaccountbut,wherethe

fundaretobeuedforaninvetment,firmmaynotchannel

themthroughtheirpractice.Clienthouldmaketheircheque

outtotheproductproviderdirectly.

Bs qus udk vs busssAllfirminvolvedinprovidinginvetmentbuineadvicemut

enurethattheyhavethefollowingprocedureinplace:

cl syssThefirm’peronnelhouldbemadeawareoftheactivitiethat

fallwithinthecopeoftheIIA.Policieandprocedurewillhave

tobeimplementedwithrepecttowhointhefirmmayprovideIIAadvice.standarddocumentationfor‘knowyourclient’and

‘clientagreement’willneedtobedrafted.Aytemfordealing

withclientcomplaintandaytemoffilingandafeguarding

clientrecordwillneedtobeimplemented.Thefirmwillalo

needtoenurethatitrecordareufficienttodemontrate

compliancewiththeIIBRintheeventofamonitoringviit.

Kw yu lWhatdoeyourclientwant,andwhatneedcanyouidentify

thattheclientmayhaveoverlooked?Youwillneedtoundertake

afactfindwiththeclienttoidentifytheeneed.Afactfindi

aquetionandanwerprocedure,uingreaonablytandard

quetion,toidentifyaclient’currentfinancialpoitionand

futurefinancialapiration.Ataxandcorrepondencefilereviewarenotufficienttoidentify

theeneedainmanycaetheclientmaynotevenknowthat

heorhehaaneeduntilititoolatetoplananything–for

example,payingforprivateeducationforchildrenortheneedfor

lifeinuranceorpenionplanning.

someoftheeneeddonotfallwithinthecopeoftheIIA.

However,theywilltillneedtobeidentifiedtoenurethattheIIA

productithemotuitable.

Subly bs dvThepractitionerhouldidentifythemotuitableproducton

themarkettomeettheneedidentifiedduringthefactfind.The

practitionerneedtoidentifypecificfeaturethatwilluittheclient,andweighuponeproductagaintanother.Forexample,a

unit-trut-baedproductmaynotbeauitableaa‘withprofit’

productforarikavereclient.Youmutmatchyourclient’

needtotheactualproductoffered.

rsk wgs

Allinvetmentcarryomerik,evenbluechipbankdepoit.

Itiimportantthataclientundertandthenatureoftherik

undertakenandconfirmthiinwriting.

rls wh lsYoumutprovideyourclientwiththefollowingdocument:

•writtenclientagreement

•keyfeature

•reaonwhyletter

•pot-aleinformation.

Ky usThihouldincludeeentialproductfeaturethattheclient

needtoundertand,detailofthepecificclient‘need’metbytheproduct,clientcontributionandexpectedreturn.Keyfeature

houldaloincludedetailoftotalchargeandtheamountof

commiionyouearn.Inpractice,theproductprovidercanprovide

thiinformationinbookletform.Thihouldbeenttotheclient

priortotheclientagreeingtobuytheparticularproduct.

rs why lThiletterhouldbeenttotheclientexplainingthereaon

whyyouchoeaparticularproduct.Ithouldbeclient-pecific

andcorrepondwiththedetailnotedduringyourfactfind.For

example,youmightpointoutthattheparticulartrackerbond

wachoenbecaueitibaedonbluechiptockonlyandi,

therefore,mediumrik–apecificrequirementthattheclient

identifiedduringthefactfind.

ps-sl Thicontainimilarinformationtothekeyfeaturedocument,

butconfirmtheproductpurchaedandcancellationright,while

reinforcinganyrikwarning.

Bs xuThirequirethepractitionertoobtainproductatthebet

poibleprice.Ituuallyreferonlytoproductthatfluctuateon

aregularbai,uchatockandhareorunitinacollective

invetmentcheme.Thiiuuallyachievedthroughtimely

execution.Onceafirmhaagreedtoeffectatranactionforthe

client,itmutdooaoonareaonablypracticable.

DuThepractitionerwillneedtodocumenttheentireprocein

ufficientdetailtodemontratecompliancewiththeIIBR.

Inparticular,thereareadditionaldocumentaryrequirement

attachingtocertaintypeofproduct,uchalifeauranceand

penionpolicie,PeronalRetirementsavingAccountand

collectiveinvetmentcheme.Documentationikeytothewhole

proce.Motpractitionerknowtheirclientextremelywelland

omightbetemptedtocompleteafactfindformwithlittleorno

aitancefromtheclient.However,evenintheeituationmany

importantdetailmaynotbeknown,uchaexitingpolicie,long

andhort-termfutureplan,retirementapiration,andplanfor

children’education.Itiunlikelythatyouwillbeawareofany

impendingmaritaleparationorplantobuildanewhoue,andaformalfactfindhouldidentifyanyomiion.



29practice information HanDBooK APPLYINGFORAFIRM’sINVEsTMENTBUsINEssCERTIFICATE(IRELAND)

Uing‘keyfeature’and‘reaonwhy’letterinformtheclientof

whattheyaregetting.Italoprovidethefirmwithaafeguard,

houldtheclientcomplaininafewyear’time,forexample,that

thewith-profitinvetmentdidnotperformawellaaimilarunit-trut-baedinvetment.Yourkeyfeaturehouldexplainwhy

oneialowerrikandmay,therefore,haveamallerreturn.

Sudy s

TheCBIhaakedthatfirm’attentionbedrawntoanumberof

pointinrepectofinvetmentbuineafollow:

cl s y

Firmmaynotdealforownaccount.Thiianimportant

afeguardtoenurethatownaccountdealingwillnotreult

inalototheclient.Whereanemployeedealinhareon

hiorherownaccount,andaclientalohaaholding,iti

importantthatareviewproceiinplacetoenuretheclient

iafeguardedandthattheACCAruleatointegrityandobjectivityhavebeenfollowed.

i lsWhereafirmitelfeekadviceonbehalfofaclient,thifact

houldbedicloedtotheclient.Thenameofthepartyproviding

theadvicehouldalobedicloed.

clus

ThedocumentationrequirementundertheIIBRidetailedbut

notonerou.TheIIBRdonotmakeellingIIAproductmore

difficult,butformaliewhathouldbe‘betpractice’.

appLication to nortHern ireLanD anD tHe UKNorthernIreland(NI)andUK-baedACCAfirmmayapplyfor

authoriationundertheIIA.Whereaclientilocatedinthe

RepublicofIreland(ROI)andIIAadviceigivenwhiletheadvier

iphyicallyinROI,thenIIAauthoriationmayberequired.

AdvicegivenbyapractitionerphyicallylocatedinROItoaNIor

UK-locatedclientwillalorequireIIAauthoriation.Depending

onhowtheapproachtotheNI-locatedclientwainitiated,the

practitionermayaloneedUKFinancialserviceandMarket

Act2000authoriation.TheterritorialcopeoftheIIAandthe

FsAandthelegalprincipleregardingtheproviionofervice

acrointernationalborderarecomplex.Memberareadviedto

eeklegaladvicepriortoundertakinguchbuine.

rwl s’ vs busss s (ild)Allfirm’invetmentbuinecertificate(Ireland)are

validonlyuntil31Decemberintheyearofiueandare

renewableannually.

feeS

Theauthoriationfeeforaninvetmentbuinecertificate

(Ireland)in2012i£468perfirm.



30

5 pplying or aninsolvency licence

TheCharteredCertifiedAccountant’GlobalPractiingRegulation(GPR)

etouttheeligibilitycriteriaforobtaininganinolvencylicenceanddetailthe

continuingobligationplacedoninolvencylicenceholder.

WHo reQUireS an acca inSoLVencY Licence?AnyperonintheUKwihingtoholdappointmentregulated

bytheInolvencyAct1986(aamended)orInolvency

(NorthernIreland)Order1989(aamended)mutfirtobtain

aninolvencylicencefromaRecogniedProfeionalBody(RPB)orcompetentauthority(ietheInolvencyserviceinGreat

BritainortheDepartmentofEnterprie,TradeandInvetmentin

NorthernIreland).

ThelegilationdoenotextendtotheChannelIlandandIle

ofMan,andthereinocomparablelegilationintheRepublic

ofIreland.Intheejuridiction,membermayholdwholly

localinolvencyappointmentiftheyholdACCApractiing

certificate.Inotherjuridiction,membermutimilarly

holdACCApractiingcertificateinordertoundertakewholly

localinolvencyappointment.Inaddition,memberpractiing

inolvencyoutidetheUKmutcomplywithanyprevailing

legilationgoverninginolvencyappointment.Inolvency

licencearenot,aageneralrule,iuedtomemberoutidetheUKunletherearecompellingreaonwhyUKinolvency

appointmentneedtobeheld.

AUKmemberwhoengageexcluivelyininolvencyworkmay

holdanACCAinolvencylicenceona‘tand-alone’bai,and

neednotaloholdapractiingcertificate.However,amember

whoholdaninolvencylicenceiuedbyanotherRPB,or

engageinactivitieotherthaninolvencyandfallingwithin

ACCA’definitionofpublicpractice(outlinedinection1),will

aloneedtoholdanACCApractiingcertificate.

IntheUK,amembermayaloapplyforaninolvencylicencein

anon-appointment-takingcapacity,forexampleaanaitantto

anappointment-taker.Anapplicantforanon-appointment-taking

inolvencylicencemutatifytheameeligibilitycriteria,detailed

below,aanappointment-taker.However,thereinorequirement

foruchanapplicanttotakeoutprofeionalindemnityinurance

intheirownrightortoholdanenablingbond.

AperonwhoinotamemberofACCAmayapplyforan

ACCAinolvencylicence.separateapplicationformfor

memberandnonmembercanbefoundonACCA’webite

atwww.glbl./bs/ssl_sddorrequetedfromAuthoriation(tel:+44(0)1415344175).

GLoBaL practiSinG reGULationS

TheCharteredCertifiedAccountant’GlobalPractiing

Regulation2003(GPR)arereproducedintheACCARulebook,

whichicirculatedonCD-ROMtoallACCApractiingcertificate

andinolvencylicenceholderautomaticallyinJanuaryofeach

year.The ACCA RulebookcanalobefoundonACCA’webiteat

www.glbl./bs/ssl_sdds

eLiGiBiLitY for an inSoLVencY Licence

Toobtainaninolvencylicenceamembermuteitherhave

previoulyheldone(orhaveprevioulyheldoneiuedbyanother

RPBorthesecretaryofstate)orhavetherighttopractiein

theUnitedKingdomaaninolvencypractitionerpuruanttothe

EuropeanCommunitie(RecognitionofProfeionalQualification)

Regulation2007(s.I.2007/2781)*or,ifitianinitialapplication,

mutmeetthefollowingrequirement:

i havebeenamemberofACCAforacontinuouperiod

ofatleattwoyearprecedingtheapplicationforan

inolvencylicence;

ii haveatleatthreeyearofpracticalexperienceinafirm

ofpractiingaccountantorinolvencypractitioner,under

theuperviionofalicenedinolvencypractitioner,orinan



31practice information HanDBooK APPLYINGFORANINsOLVENCYLICENCE

OfficialReceiver’office,ofwhichatleattwoyearmut

havebeenobtainedafteradmiiontomemberhip;

iiihaveobtainedatleat600hourofinolvencyexperience(andatleat150hourineachofthreecalendaryear)in

thethreeyearimmediatelyprecedingtheapplicationforan

inolvencylicence;and

ivhaveobtainedapaintheexaminationoftheJoint

InolvencyExaminationBoard(JIEB).

(*suchapplicantmuttillmeettheongoingexperience

requirementetoutbelow.)

‘Memberhip’idefinedatheformalgrantoftheACCAletter,

notimplythecompletionoftheACCAexamination.Detail

ofwhatcontitute‘relevantinolvencyexperience’,includinga

litoftheappointmentinwhichitipermiibletoactaan

aitanttoanappointment-holderinordertogaintherequirednumberofhourofexperience,areetoutbelow.

TheexaminationoftheJIEBmayonlybeattemptedif,bythe

dateonwhichitiheld,acandidatehacompletedoneyearof

ACCAmemberhip.Thereinorequirement,however,forthi

yeartohavebeenpentobtainingrelevantinolvencyexperience.

sincetheexamieentiallypractical,relevantexperiencei

clearlyaconiderableadvantage.

FurtherinformationontheJIEBexaminationcanbe

downloadedfromACCA’webiteatwww.glbl./

bs/ssl_sdds/_/ls.TheexaminationigenerallyheldinearlyNovemberandentryform

areuuallyavailablefromJune,withthecloingdatenormally

beinginseptember.

TheRPBandcompetentauthoritieundertheInolvency

Act1986andtheInolvency(NorthernIreland)Order1989

hareinformationuppliedinrelationtoinolvencylicence

applicationandrenewal,andanymatterdicloedtoACCA

may,aappropriate,bedicloedtoanyotherRPBorcompetent

authoritywithaninteretinthematter.Inapplyingforor

renewingalicence,amembermutundertaketoacceptthi

dicloureproviion.

eLiGiBiLitY of non-memBerS for an inSoLVencY

Licence

AperonwhoinotamembermaytillberegulatedbyACCAolelytoactaaninolvencypractitioner.Toobtainaninolvency

licenceanon-membermuteitherhaveprevioulyheldone

iuedbyACCA(orhaveprevioulyheldoneiuedbyanother

RPBorthesecretaryofstate)or,ifitianinitialapplication,

mutmeetthefollowingrequirement:

i havecompletedthreeyearofpracticalexperienceunder

theuperviionofalicenedinolvencypractitioner,orinan

OfficialReceiver’office;and

ii haveobtainedaminimumof600hour’inolvencyexperience

(andatleat150hourineachofthreecalendaryear)in

thethreeyearimmediatelyprecedingtheapplicationforan

inolvencylicence;andiiihavepaedtheexaminationetbytheJIEB.

Inaddition,non-memberarerequiredtoprovideundertakingto

beboundbyACCA’:

i GlobalPractiingRegulation,ii AuthoriationRegulation,

iiiCharter,bye-lawandregulationofACCA,inofaratheyare

appropriateandapplicable,and

ivdiciplinaryprocedure,togetherwithanypenaltieimpoed

underuchproviion,inofarauchpenaltiecouldbe

applicabletoaperonwhoinotamemberofACCA,aif

theywerememberofACCA.

reLeVant inSoLVencY eXperience

The600hourofinolvencyexperiencerequiredfortheiueof

aninolvencylicencemaybegainedaanaitanttoanofficeholderinthefollowingappointment:

•companyliquidator,includingliquidatorinamember’

voluntarywinding-up

•companyadminitrator,receiverandadminitrativereceiver

•uperviorofacompoitionorchemeforacompany

•truteeinbankruptcyorinterimreceiverorinterimor

permanenttruteeinequetration

•truteeunderadeedofarrangementortrutdeedforcreditor

•uperviorofacompoitionorchemeforindividual

•adminitratorunderection421oftheInolvencyAct1986of

inolventetateofdeceaedindividual.

Thenatureoftheinolvencyexperienceoughthouldbe

conidereddiligently,anditiuggetedthatexperiencehouldbeobtainedinthefollowingactivitie:

aug•maintenanceofaccountingrecordforcompaniein

liquidationincludingcahbook,bankaccountand,where

appropriate,nominal,aleandpurchaeledger

•preparationoftatementofaffair,creditor’anddebtor’

chedule,valuationoftock,work-in-progreand

finihedgood.

asss•verificationoftheexitenceofaet

•verificationoftheownerhipofaet.

pyll•agreementofouttandingclaimwithemployee

•agreementofentitlementunderemploymentlegilation

•taffevaluationandpayrollcot

•controllingthepayroll

•creatingneworadaptingexitingytemtorecordwageand

alarypayment

•deductionfromgropay.

cl l ds

•evaluatingexitingfinancialytemandrecordingmethod

•aeingtheadequacyofaccountingytemaabaifor

thepreparationofaccount

•acertainingandevaluatingtheytemofcontrolifreliancei

tobeplaceduponit•reviewingfinancialtatementtoeethattheyareconitent

withotherevidenceobtained.



32

evlug bly

•evaluatingthehortandlong-termprofitabilityandthe

potentialforthebuinetobeoldaagoingconcern

•preparingbudgetandcahflowprojection•productandmarketevaluation.

csh g•invetingoffund

•deigningprocedureformakingpayment

•cahflow.

Sl busss d sss•meetingwithpropectivepurchaer

•preparingfinancialinformation

•liaiingwithagenttopreparealebrochure

•evaluatingofferreceived.

tx

•agreeingthetaxationofacompanywithHMRevenueandCutomincluding:

– corporationtax

– incometax

– capitalgaintax

–ValueAddedTax

– nationalinurancecontribution

•taxplanning(inparticular,inrelationtoamember’voluntary

winding-up).

Gl•agreeingallcreditor’claim–ecured,preferentialand

unecured

•enuringthatalltherelevanttatutoryrequirementrelatingto

inolvencieareobervedincludingfilingofform,reporttocreditor,bondrequirement,etc

•preparingreportforcreditor,auditor,bank,etc

•conveningandconductingcreditor’meeting

•preparingandpreentingevidenceincourt.

onGoinG conDitionS for HoLDinG an inSoLVencY

LicenceAtthetimeofwriting,anymemberwhohaprevioulyheld

aninolvencylicenceremaineligibletoreumeholdinga

licencewithouthavingtore-ittheJIEBexamination,ubject

totillbeingafitandproperperonandmeetingtheongoing

experiencerequirement.f d ACCAwillonlyiueinolvencylicencetoapplicantwhoare,

andwhocontinuetobe,‘fitandproper’peron.Pleaerefer

totheGlobalPractiingRegulationforthecriteriauedbythe

AdmiionandLiceningCommitteeindeterminingwhether

aperonifitandproper.Aummaryofthecriteriaialo

containedinection1.

ACCAmay,inaddition,andwithoutlimitation,alohaveregard

tomatterlitedinRegulation6oftheInolvencyPractitioner

Regulation2005(statutoryIntrument2005/524).

cug ssl dvl

AllinolvencylicenceholderarerequiredtoundertakeCPD,in

accordancewithMemberhipRegulation4(4).Therearefour

alternativeroutetoobtainingatifactoryCPD.TheeareexplainedonACCA’webiteatwww.glbl./bs/d

Individualfollowingtheunitroutearerequiredtoundertakea

minimumof40unitofrelevantCPDeachyear,ofwhich21

unithouldbeverifiableCPD.Licenceholderhouldbeable

todemontratethattheyhavemaintainedcompetenceinthe

pecialiedareaoftheirpractice.Forexample,individual

whoworkintheperonalinolvencyfieldwillneedtoenure

theymaintaintheirknowledgeacrobothtatutoryandnon-

tatutoryolution.

Alicenceholderwhoundertake,aareultofholdinga

practiingcertificate,othertypeofworkhoulddividehior

herCPDbetweenthevariouubjectareainwhichheorhework,toenuretheyaddreanyidentifiedneedandmaintain

competenceintheareainwhichheorhework.

FurtherinformationonCPDcanbefoundinaeparatefactheet

entitled‘Continuingprofeionaldevelopment(CPD)forpractiing


www.glbl./bs/ssl_sddsor


pssl dy suAninolvencypractitionerwhoianappointment-takermut

holdprofeionalindemnityinurance(PII).Inthecaeofa

peronwhoemployfulland/orpart-timetaff,fidelityguarantee

inurance(FGI)mutbeheldinrepectofallpartner,director

andemployee.AmemberceaingtopractiemutmakearrangementforthecontinuedexitenceofPIIandFGIfora

periodofixyear.

Reponibilityforobtainingadequatecoverliewiththe

individualandmaybeeffectedwithanyreputableinurance

companyorunderwriter.FurtherinformationonPII,

includingdetailofthelimitofindemnity,canbefoundina

eparatefactheetentitled‘Profeionalindemnityinurance


atwww.glbl./bs/ssl_sddsor


islvy s’ bds d hly v shduls

Aninolvencypractitionerwhoianappointment-takerirequiredtoobtainan‘enablingbond’(or,inscotland,acaution),

withaminimumof£250,000ofcover,fromareputable

inurer,andtoobtainpecificbondinrepectoftheaet

tocomeunderhiorhercontrolinrepectofeachinolvency

appointmenttaken,whichhallbedetailedonmonthlycover

chedule.Theechedulearetobeubmittedtotheholder’

enablingbondinurerbythe15thdayofeachmonthfollowing

thattowhichtheyrelateandtoACCAbythe20thdayofeach

month.ThechedulemaybeubmittedtoACCAat:

Authoriation

ACCA

2CentralQuay,89Hydeparkstreet,GlagowG38BW

[email protected]




DetailoftherequirementarecontainedintheInolvency

PractitionerRegulation2005;pleaeeeAppendix1attheend

ofthiection.

Appointment-takerarerequiredtoprovideeitheracopyorthe

originaloftheirenablingbondbeforethelicencecanbeiued.A

[email protected]

cuy Aninolvencypractitionerwhoianappointment-takermut

enterinto,andkeepinforceforalltheperiodduringwhicha

licenceiheld,awrittenagreementwithanotherinolvency

practitioner–the‘nominee’.Forpartner,thiagreementmay

bemadewithanotherequivalentlevelcertificateholderinthe

practice.Thiprovideforthenomineetobereponiblefor

theindividual’practice(ortheparticularareaofthepractice

coveredbytheagreement)intheeventofdeathorincapacity.

Continuitycanbeauredbyenteringintoacontinuityagreementor,inthecaeofincorporatedfirm,bymakingproviionforit

inthememorandumandarticleofaociation.Thenominee

mutbebaedintheamecountryatheindividual,and

beauthoriedtocarryonalloftheindividual’workinthe

areacoveredbytheagreement(iehavetheametypeof

authoriation).Wheretheindividualpractieinmorethanone

country,eparatenomineemutbeappointedaccordingly.

Thenameandaddreoftheperonorfirmreponiblefor

continuitymutbegivenontheinolvencylicenceapplication

form.Itimandatorythatawrittenagreement(orproviioninthe

memorandumandarticleofaociation)bemade,andthimay

beinpectedbyACCA.Furtherinformationoncontinuityofpractice

canbefoundinaeparatefactheetentitled‘Continuityofpracticerequirement’whichcanbedownloadedfromACCA’webite


n

Informationonnotifiableevent,andthetimerequirementfor

notification(omechangemutbenotified28dayinadvance),

canbefoundinaeparatefactheetentitled‘Notification



ogg x qu

Alicenceholderwihingtorenewhiorherinolvencylicencemutcontinuetomeet,aanappointment-taker,jointappointment-

taker or a an aitant to an appointment-taker, an ongoing

experiencerequirement,andobtaintherelevantnumberofhour

ofinolvencyexperienceafollow:

•600hour’experiencegainedoveraperiodofmorethanthree

butlethanorequaltofiveyearimmediatelypreceding

therenewalapplication,ofwhichatleat150hourmut

havebeengainedineachofthreecalendaryearwithinuch

period;or

•750hour’experiencegainedoveraperiodofmorethanfive

butlethanorequaltoeightyearimmediatelypreceding

therenewalapplication,ofwhichatleat100hourmut

havebeengainedineachoffourcalendaryearwithinuchperiod;or

•900hour’experiencegainedoveraperiodofmorethan

eightyearimmediatelyprecedingtherenewalapplication,of

whichatleat75hourmuthavebeengainedineachofix

calendaryearwithinuchperiod.

Alicenceholderwhofailtomeettherelevantinolvency

experiencerequirementforanyonecalendaryearhallbeeligible

foraninolvencylicenceprovidedheorhecandemontratethat

heorhehaundertakenanadequateprogrammeofadditional

continuingprofeionaldevelopmentduringthatyear.

cdu

AllinolvencylicenceholdermutcomplywithACCA’Code

ofEthicandConduct.Inaddition,inolvencylicenceholder

houldrefertothepecificguidanceoninolvencypractice

andotherectionconcernedwiththeproperconductofpublic

practice,integrityandindependenceawellatheinolvency

legilationandstatementofInolvencyPractice(sIP).ThesIPcanbedownloadedfromACCA’webiteat www.glbl.

/bs/ssl_sdds/g/slvy

mgInolvencylicenceholdermutco-operatewithACCAinit

monitoringandenforcementofcompliancewiththebye-law

andregulation.ACCAwillmonitorandenforceitbye-lawand

regulationbyanalyingpractitioner’annualreturnandcarrying

outmonitoringviit.



aurance’whichcanbedownloadedfromACCA’webite

atwww.glbl./bs/ssl_sddsor



UefulinformationabouttheUKConumerCreditAct1974,

moneylaunderingandregiteringforinvetmentbuineinthe

UKandIrelandcanbefoundinection1.

rwl slvy lsAllinolvencylicenceareannuallyrenewableandarevalidonly

until31Decemberintheyearofiue.Renewalnotificationfor

inolvencylicenceareuuallyentinseptemberofeachyear.

S- ls

Amemberiregardedabeinginpare-timeinolvencypracticeifheorheholdaninolvencylicencewhileemployedin

indutry,commerceorpublicerviceorwhileemployed(a

oppoedtobeingapartner,directororprincipal)inapractice.A

practitionerwillbeakedonhiorherapplicationformwhether

thelicenceiinrepectofpare-timeinolvencypractice.

However,theexperiencerequirementforobtainingpare-time

inolvencylicence,andtheongoingcondition,aretheamea

forfull-timelicence.

ACCAholdonfiledetailofamember’reidentialandbuine

addreeandthatofthepare-timeinolvencypracticeifit

contituteathirdaddre.Itieentialwhenreportingchange

inbuinedetailoraddreethatiticlearwhichaddrei

tobeamended.



34

islvy lvs

AllACCAinolvencylicenceholderarerequiredtopayannual

levietotheInolvencyservice,InolvencyPracticeCounciland

theDepartmentofEnterprie,TradeandInvetmentinNorthernIreland.InvoiceareuuallyentoutinAprileachyearbyACCA

andarepayableirrepectiveofwhetherornotappointmentare

takenorheld.

inSoLVencY Licence feeS – 2012mbs

Inolvencylicence–non-appointment-taker £393

Inolvencylicence–appointment-taker £1,699

n-bs

Inolvencylicence–non-appointment-taker £582

Inolvencylicence–appointment-taker £1,896




appenDiX 1 – appLYinG for an inSoLVencY Licence

TherefollowanextractfromTheInolvencyPractitioner

Regulation2005.

th rqus Suy d cu h pp h fus islvy p .

12(1) schedule2hallhaveeffectinrepectofthe

requirementprecribedforthepurpoeofection

390(3)(b)inrelationtoecurityorcautionfortheproper

performanceofthefunctionofaninolvencypractitioner

andforrelatedmatter.

(2) Wheretwoormoreperonareappointedjointlytoact

ainolvencypractitionerinrelationtoanyperon,the

proviionofthiregulationhallapplytoeachofthem

individually.

Shdul 2rqus Suy cu d rld ms

p 2 – rqus lg suy d u

rqus s suy u

2 Therequirementinrepectofecurityorcautionfor

theproperperformanceofthedutieofinolvency

practitionerprecribedforthepurpoeofection390(3)

(b)hallbeaetoutinthiPart.

rqu Bdg – ts h Bd

3(1) Whereaninolvencypractitioneriappointedtoactin

repectofaninolventtherehallbeinforceabondina

formapprovedbythesecretaryofstatewhich:

a containproviionwherebyauretyorcautioner

undertaketobejointlyandeverallyliableforloe

inrelationtotheinolventcauedby:

i thefraudordihonetyoftheinolvencypractitioner

whetheractingaloneorincolluionwithoneor

moreperon;or

ii thefraudordihonetyofanyperoncommitted

withtheconnivanceoftheinolvencypractitioner

andbotherwieconformtotherequirementofthiPart.

(2) Thetermofthebondhallprovide:

a forthepayment,inrepectofeachcaewherethe

inolvencypractitioneract,ofclaiminrepectof

liabilitieforloeofthekindmentionedinub-

paragraph(1)uptoanaggregatemaximumum

inrepectofthatcae(‘thepecificpenaltyum’)

calculatedinaccordancewiththeproviionofthi

schedule;

b intheeventthatanyamountpayableunder(a)are

inufficienttomeetallclaimariingoutofanycae,

forafurtherumof£250,000(‘thegeneralpenaltyum’)outofwhichanyuchclaimaretobemet;

c forachedulecontainingthenameoftheinolvent

andthevalueoftheinolvent’aettobeubmitted

totheuretyorcautionerwithinuchperiodamaybe

pecifiedinthebond;

d thatwhereatanytimebeforetheinolvency

practitionerobtainhireleaeordichargeinrepect

ofhiactinginrelationtoaninolvent,heform

theopinionthatthevalueofthatinolvent’aet

igreaterthanthecurrentpecificpenaltyum,a

reviedpecificpenaltyumhallbeapplicableonthe

ubmiionwithinuchtimeamaybepecifiedinthe

bondofacoverchedulecontainingareviedvalueof

theinolvent’aet;

e forthepaymentofloeofthekindmentionedin

ub-paragraph(1),whethertheyarieduringthe

periodinwhichtheinolvencypractitionerholdofficeinthecapacityinwhichhewainitiallyappointed

oraubequentperiodwhereheholdofficeina

ubequentcapacity;

(3) Thetermofthebondmayprovide:

a thattotalclaiminrepectoftheactoftheinolvency

practitionerunderallbondrelatingtohimaretobe

limitedtoamaximumaggregateum(whichhallnot

belethan£25,000,000);and

b foratimelimitwithinwhichclaimmutbemade.

4 subjecttoparagraph5,6and7,theamountof

thepecificpenaltyinrepectofacaeinwhichthe

inolvencypractitioneract,hallequalatleatthevalueoftheinolvent’aetaetimatedbytheinolvency

practitioneraatthedateofhiappointmentbutignoring

thevalueofanyaet:

a chargedtoathirdpartytotheextentofanyamount

whichwouldbepayabletothatthirdparty;or

bheldontrutbytheinolventtotheextentthatany

beneficialinteretinthoeaetdoenotbelongto

theinolvent.

5 Inacaewhereaninolvencypractitioneractaa

nomineeoruperviorofavoluntaryarrangementunder

PartIorPartVIIIoftheAct,theamountofthepecific

penaltyhallbeequaltoatleatthevalueofthoeaetubjecttothetermofthearrangement(whether

ornotthoeaetareinhipoeion)including,where

underthetermofthearrangementthedebtororathird

partyitomakepayment,theaggregateofanypayment

tobemade.

6 Wherethevalueoftheinolvent’aetilethan

£5,000,thepecificpenaltyumhallbe£5,000.

7 Wherethevalueoftheinolvent’aetimore

than£5,000,000thepecificpenaltyumhallbe

£5,000,000.

8 Inetimatingthevalueofaninolvent’aet,unle

hehareaontodoubttheiraccuracy,theinolvencypractitionermayrelyupon:



36

a anytatementofaffairproducedinrelationtothat

inolventpuruanttoanyproviionoftheAct;and

b inthecaeofaequetration:i thedebtor’litofaetandliabilitieunder

ection19oftheBankruptcy(scotland)Act1985;

ii thepreliminarytatementunderthatAct;or

iiithefinaltatementofthedebtor’affairbythe

interimtruteeunderection23oftheBankruptcy

(scotland)Act1985.

p 3 – rds lg bdg d d s

rd s ly sus b d by slvy

9(1) Aninolvencypractitionerhallmaintainarecordofall

pecificpenaltyumthatareapplicableinrelationtoanycaewhereheiactinganduchrecordhallcontainthe

nameofeachperontowhomthepecificpenaltyum

relateandtheamountofeachpenaltyumthatiin

force.

(2) Anyrecordmaintainedbyaninolvencypractitioner

puruanttothiparagraphhall,onthegivingof

reaonablenotice,bemadeavailableforinpectionby:

a anyprofeionalbodyrecogniedunderection391of

theActofwhichheiorwaamemberandtherule

ofmemberhipofwhichentitleorentitledhimtoact

aaninolvencypractitioner;

banycompetentauthoritybywhomtheinolvencypractitioneriorwaauthoriedtoactpuruantto

ection393oftheAct;and

c thesecretaryofstate.

r bd by gsd ssl bdy uhy

10 Thebondreferredtoinparagraph3hallbeentbythe

inolvencypractitionerto:

a anyprofeionalbodyrecogniedunderection391

oftheActofwhichheiamemberandtherule

ofmemberhipofwhichentitlehimtoactaan

inolvencypractitioner;or

banycompetentauthoritybywhomtheinolvency

practitioneriauthoriedtoactpuruanttoection

393oftheAct.

is d qus lg v shdul

– egld d Wls

11(1) Thiregulationapplietoaninolvencypractitioner

appointedininolvencyproceedingundertheActtoact:

a inrelationtoacompanywhichthecourtinEngland

andWalehavejuridictiontowindup;or

b inrepectofanindividual.

(2) Theinolvencypractitionerhallretainacopyofthecover

cheduleubmittedbyhiminrepectofhiactingin

relationtothecompanyor,athecaemaybe,individual

untiltheecondanniveraryofthedateonwhichheigrantedhireleaeordichargeinrelationtothat

companyor,athecaemaybe,thatindividual.

(3) Thecopyofachedulekeptbyaninolvencypractitioner

inpuruanceofub-paragraph(2)hallbeproducedby

himondemandforinpectionby:

a anycreditoroftheperontowhomthechedulerelate;

bwherethechedulerelatetoaninolventwhoian

individual,thatindividual;

c wherethechedulerelatetoaninolventwhichia

company,anycontributoryordirectororotherofficerof

thecompany;andd thesecretaryofstate.

is d qus lg h v

shdul – Sld

12(1) Whereaninolvencypractitioneriappointedtoactin

relationtoacompanywhichthecourtinscotlandhave

juridictiontowindup,hehallretainintheederunt

bookkeptunderrule7.33oftheInolvency(scotland)

Rule1986,theprincipalcopyofanycoverchedule

containingentrieinrelationtohioacting.

(2) Whereaninolvencypractitioneriappointedtoacta

interimtruteeorpermanenttruteeoraatruteeunder

atrutdeedforcreditor,hehallretainintheederuntbookkeptforthoeproceeding,theprincipalcopyof

anycoverchedulecontainingentrieinrelationtohio

acting.

rqus sub v shdul uhsg bdy

13(1) Everyinolvencypractitionerhallubmittohi

authoriingbodynotlaterthan20dayaftertheendof

eachmonthduringwhichheholdofficeinacae:

a theinformationubmittedtoauretyorcautionerin

anycoverchedulerelatedtothatmonth;

bwherenocovercheduleiubmittedinrelationtothe

month,atatementeitherthattherearenorelevantparticulartobeuppliedor,athecaemaybe,that

itinotpracticabletoupplyparticularinrelationto

anyappointmenttakeninthatmonth;and

c atatementidentifyinganycaeinrepectofwhichhe

habeengrantedhireleaeordicharge.

(2) Inthiregulation‘authoriingbody’meaninrelationto

aninolvencypractitioner:

a anyprofeionalbodyrecogniedunderection391

oftheActofwhichheiamemberandtherule

ofmemberhipofwhichentitlehimtoactaan

inolvencypractitioner;or

banycompetentauthoritybywhomheiauthoriedto

actaaninolvencypractitionerpuruanttoection

393oftheAct.



37



38





d i n t h i s p u b l i c a t i o n i s p r o v i d e d f o r g e n e r a l p u r p o s e s o n l y . W h i l e e v e r y e f f o r t h a s b e e n m a d e t o e n s u r e t h a t t h e i n f o r m a t i o n i s a c c u r a t e a n d u p t o

t o p r e s s , A C C A a c c e p t s n o r e s p o n s i b i l i t y f o r a n y l o

s s w h i c h m a y a r i s e f r o m

i n f o r m a t i o n c o n t a i n e d i n t h i s p u b l i c a t i o n . N o p a r t o f t h i s p u b l i c a t i o n m a y

m a t , w i t h o u t p r i o r w r i t t e n p e r m i s s i o n o f A C C A . ©

A C C A J a n u a r y 2 0 1 0

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