The Accountancy and Actuarial Discipline Board, an operating body of the Financial Reporting Council (FRC), today publishes a consultation document on guidance it proposes to issue in respect of decisions to file disciplinary complaints under its Accountancy Scheme.

The Guidance has been developed following changes that were made to the Accountancy Scheme earlier in the year.

It is intended that the Guidance should provide further transparency in the AADB’s processes and promote consistency in the decision-making process.

The Guidance has been developed taking particular account of the absence of any alternative to a disciplinary hearing for dealing with any misconduct identified and is designed to ensure that a viable case should normally go forward to a disciplinary hearing unless it is clearly not in the public interest for it to do so.

Responses to the consultation are requested by 22 October 2010.

The consultation document, “The Referral of Formal Complaints to Disciplinary Tribunals”, is available on the AADB website at: http: http://www.frc.org.uk/aadb/publications/.

1. The FRC is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment. 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 and 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.