The Accountancy and Actuarial Discipline Board (AADB), a part of the Financial Reporting Council (FRC), is bringing into effect today its amended Accountancy Scheme and supporting Accountancy Regulations.

The amended Scheme was finalised following a wide-ranging review including a public consultation and the involvement of those who participate in the scheme.

Key changes made to the Accountancy Scheme are:

• a change to the evidential test to be applied before a matter proceeds to a disciplinary tribunal and the introduction of a desirability test;
• new procedures to appoint tribunal and appeal tribunal members by an independent Convener;
• a new power to conduct preliminary enquiries, subject to an agreed protocol, before making a decision to investigate. This will help ensure that decisions to investigate are, in all cases, as fully informed as possible.
• restriction of the tribunal’s discretion to award costs against the Board to circumstances where the AADB is found to have acted “unreasonably”; and
• changes to the tribunal’s voting arrangements.

Timothy Walker, Chairman of the AADB, said

“I am pleased to announce that the Participants and the FRC have approved the amended Accountancy Scheme. The amended Scheme now comes into effect immediately.

The changes that have been made underline the Board’s commitment to the principles of independence, fairness and transparency in its disciplinary arrangements. I believe they will further strengthen the disciplinary process in public interest cases.“ 

The amended Accountancy Scheme and Regulations are available on the AADB website at: http://www.frc.org.uk/aadb/publications/. 
 

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy & Actuarial Discipline Board) and by the FRC Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
2. The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute of Actuaries and the Faculty of Actuaries in Scotland.
3. The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body. The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. An investigation does not always mean that an allegation has been made or that there is evidence of misconduct on the part of the Member or Member Firm involved.
4. Disciplinary Complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a Complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by the Scheme and withdrawal of practising certificates or licenses.
5. All Press enquires should be directed to: Anna Colban, Secretary to the Board, on telephone: 020 7492 2451 or email: a.colban@frc.org.uk .