pi handbook 2012
TRANSCRIPT
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 2/40
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
Otheruefulinformation 15
3RegiteringforinvetmentbuineintheUK 17
Introduction 17
Eligibilitycriteria 17
Incidentalmanner 18
Pecuniaryreward 18
Whatactivitiecanfirmundertake? 19
Conductofbuineregulation 19
Overeabrancheorofficeandjuridiction 21
Appendix1:Exemptregulatedactivitie 22
Appendix2:Regulation4(2)oftheDPBR 23
Appendix3:Regulation4(3)oftheDPBR 23
Appendix4:Regulation4(4)oftheDPBR 24
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 3/40
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
Otheruefulinformation 33
Appendix1:Applyingforaninolvencylicence 35
CONTENTs
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 4/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 5/40
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).
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 6/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 7/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 8/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 9/40
9practice information HanDBooK THEPRACTIsINGCERTIFICATE
Practiingmemberhouldbeabletodemontratethattheyhave
maintainedcompetenceinthepecialiedareaoftheirpractice.
FurtherinformationonCPDcanbefoundinaeparatefactheetentitled‘Continuingprofeionaldevelopment(CPD)forpractiing
member’whichcanbedownloadedfromACCA’webiteat
www.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
cduHolderofACCApractiingcertificatemutcomplywithACCA’
CodeofEthicandConduct.Aeparatefactheetentitled‘Code
ofEthicandConduct’canbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
mg, quly ssu d l
Practiingcertificateholdermutco-operatewithACCAinitmonitoringandenforcementofcompliancewiththebye-law
andregulation.ACCAwillmonitorandenforceitbye-lawand
regulationbyanalyingpractitioner’annualreturnandcarrying
outmonitoringviit.
Furtherinformationonmonitoringcanbefoundinaeparate
factheetentitled‘Monitoringrequirementandglobalquality
aurance’whichcanbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
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
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
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
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 10/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 12/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 13/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 14/40
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
requirement’whichcanbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
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
requirement’whichcanbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 15/40
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
member’whichcanbedownloadedfromACCA’webiteat
www.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
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.
Furtherinformationonmonitoringcanbefoundinaeparate
factheetentitled‘Monitoringrequirementandglobalquality
aurance’whichcanbedownloadedfromACCA’webiteatwww.glbl./bs/ssl_sdds/ gorrequetedfromAuthoriation.
DssAfirmholdinganACCAauditingcertificatemayincludethe
followingtatementontheirbuinetationery:
‘RegiteredaauditorbytheAociationofChartered
CertifiedAccountant’.
Firmmayalouethedecription‘RegiteredAuditor’.
Furtherinformationcanbefoundinaeparate
factheetentitled‘Controlanddecriptionrequirement’
whichcanbedownloadedfromACCA’webiteatwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
otHer USefUL information
UefulinformationabouttheUKConumerCreditAct1974,
moneylaunderingandregiteringforinvetmentbuineinthe
UKandIrelandcanbefoundinection1.
S- sAmemberiregardedabeinginpare-timepracticeifheor
heholdapractiingcertificateandauditqualificationwhile
employedinindutry,commerce,publicerviceoremployed(aoppoedtobeingaprincipal)inapractice.Theexperience
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 16/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 17/40
17practice information HanDBooK
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
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 18/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 19/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 20/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 21/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 22/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 23/40
23practice information HanDBooK
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
RegulatedActivitieOrder;
e etablihing,operatingorwindingupaperonalpenion
chemeortakeholderpenionchemewithinarticle52of
theRegulatedActivitieOrder;
f recommendationtobuyorubcribeforecuritieor
contractuallybaedinvetmentwhichareadmittedtodealing
onanexchangeorothermarketwithinarticle53ofthe
RegulatedActivitieOrder;
g adviingonthemeritofenteringintoaregulatedmortgagecontractwithinarticle53A,aregulatedhomereverionplan
withinarticle53Bandaregulatedhomepurchaeplanwithin
article53CoftheRegulatedActivitieOrder;
hadviingonthemeritofenteringintoorvaryingthetermof
acontractoflong-terminurance,acontractoflong-termcare
inuranceorotherinurance-baedinvetmentinthemanner
pecifiedbyarticle53oftheRegulatedActivitieOrder;
i managingtheunderwritingcapacityofaLloyd’yndicateaa
managingagentatLloyd’apecifiedunderarticle57ofthe
RegulatedActivitieOrder;
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.
appenDiX 3rgul 4(3) h DpBrs
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
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 24/40
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.
appenDiX 4rgul 4(4) h DpBrs
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 25/40
25practice information HanDBooK
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)
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 26/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 27/40
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’).
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 28/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 29/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 30/40
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
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 31/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 32/40
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
member’whichcanbedownloadedfromACCA’webiteat
www.glbl./bs/ssl_sddsor
requetedfromAuthoriation.
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
requirement’whichcanbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsor
requetedfromAuthoriation.
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
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 33/40
33practice information HanDBooK APPLYINGFORANINsOLVENCYLICENCE
DetailoftherequirementarecontainedintheInolvency
PractitionerRegulation2005;pleaeeeAppendix1attheend
ofthiection.
Appointment-takerarerequiredtoprovideeitheracopyorthe
originaloftheirenablingbondbeforethelicencecanbeiued.A
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
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
n
Informationonnotifiableevent,andthetimerequirementfor
notification(omechangemutbenotified28dayinadvance),
canbefoundinaeparatefactheetentitled‘Notification
requirement’whichcanbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsorrequetedfromAuthoriation.
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.
Furtherinformationonmonitoringcanbefoundinaeparate
factheetentitled‘Monitoringrequirementandglobalquality
aurance’whichcanbedownloadedfromACCA’webite
atwww.glbl./bs/ssl_sddsor
requetedfromAuthoriation.
otHer USefUL information
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 34/40
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
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 35/40
35practice information HanDBooK APPLYINGFORANINsOLVENCYLICENCE
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:
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 36/40
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.
8/2/2019 PI Handbook 2012
http://slidepdf.com/reader/full/pi-handbook-2012 40/40
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