How do I make a complaint about a set of accounts?
- Check that the complaint falls within the Panel's remit (Operating Procedures)
- Complaints can be directed to the Panel via the contact page
- It is important to set out your complaint clearly, referring where possible to a specific breach of accounting rules
Following these steps will help to avoid delays.
Can I speak to someone at the Panel?
- Yes, but it is better to write to the Panel about a complaint to ensure that all the facts are set out clearly
- You can call to check on the progress of a case, but the Panel cannot give out information while a case is going on and will write to you when it is finished
- You can call to check if a matter is likely to fall within the Panel's remit, but it is often better to write to avoid misunderstanding
What sort of issues fall within the Panel's remit?
- Possible breaches of accounting rules or failure to make disclosures required by the Companies Act or accounting standards
What sort of financial information does the Panel consider?
- Financial accounts of UK public companies and large private companies
- Includes AIM, OFEX and unquoted public companies
- Interim and final accounts, but NOT press releases, trading statements etc
- Directors' reports of certain companies (for periods commencing April 2006)
Do I need to be a shareholder in a company in order to make a complaint?
- No. Anyone can make a complaint against a company
Will my identity be revealed to the company?
- The Panel operates confidentially as set out in its Operating Procedures. The Panel does not normally disclose how a matter at issue came to its attention, nor does it reveal the identity of any complainant
What does the Panel do when it receives a complaint?
The complaint is reviewed by Panel staff who draw up a recommendation for the Chairman and Deputy Chairman. If they decide that there is, or may be, a question of whether a report complies with relevant accounting or reporting requirements then either a formal enquiry will be opened or the Panel will write to the company Chairman seeking further information. In the course of its review, the Panel may find other issues which it may wish to raise with the company.
I received an initial acknowledgement from the Panel secretary after I wrote, but I haven't heard anything for months. Is this usual? Why is it taking so long?
- Correspondence can be protracted, especially where issues are complex
- If the Panel decides to pursue a case, it will usually take some months to conclude. In a few cases, it could take over a year
Will the Panel take up my case right away or does it have a backlog of cases?
You should hear from the Panel within a short time. At this point, the Panel will confirm whether your complaint falls within the Panel's remit and whether they will investigate further. The Panel will also tell you about their procedures and when you can expect to hear from them again.
The Panel says my complaint does not fall within its remit. Why not?
There are a number of reasons why this might be the case. The entity that is the subject of the complaint may not be a company that falls within the Panel's remit or the complaint itself may not fall within the Panel's scope (Operating Procedures). Where possible, if a case does not fall with the Panel's remit, it will direct you to another more appropriate authority.
The Panel says it is following up my complaint but that it has not opened a formal enquiry. What does that mean?
On receipt of a complaint, Panel staff will carry out a review for indications of potential breach of relevant accounting or reporting requirements. A preliminary analysis with a recommendation as to a course of action is provided to the Chairman and Deputy Chairman who then make a decision on whether or not to proceed with the case. A decision to proceed will generally result in a letter to the company asking for further information. This does not constitute a formal enquiry. Sometimes a company's reply will satisfactorily deal with the matters at issue, but where it does not, a decision may be taken to open a formal enquiry. When a formal enquiry is opened, the company will be informed and a Panel Group will be set up (see 'What is a Panel Group?'). A complainant is not generally informed at this stage.
How will I find out what is happening on my case? Will I get updates as the case progresses? Will I find out what happens in the end?
The Panel does not update a complainant on the progress of the case, as this would result in a breach of its duty of confidentiality to the company. The Panel will inform the complainant only when it reaches the end of its investigation or enquiry. At that stage, the complainant will be informed of the outcome of the case. If a press notice is issued, the complainant will be sent a copy.
What can I do to speed things up?
Set out the matters at issue clearly, stating why you believe that there has been, or may have been, a breach of accounting or reporting requirements. Check that the entity, and the issue, fall within the remit of the Panel.
What is a formal enquiry?
A formal enquiry is begun when the Chairman and Deputy Chairman decide that there may have been a potentially significant breach of accounting or reporting requirements. This will usually be after an initial round of correspondence with a company, although in exceptional circumstances, a formal enquiry may be opened straight away. In order to commence a formal enquiry, a Panel Group is set up. The Group then decides whether to proceed with the enquiry.
What is a Panel Group?
A Group is appointed by the Chairman and consists of five or more Panel members, usually including the Chairman and Deputy Chairman.
Who are the Panel members? Are they qualified? Are they paid?
A full list of current Panel members can be found at Panel Members. Panel members are qualified accountants or lawyers who specialise in company law and who hold or have held senior positions in their chosen field. They may be, or have been, in practice, in the public sector or in industry, for example as a senior partner in a major accounting firm or as Finance Director of a FTSE 100 company. They are recruited by public advertisement. Other than the Chairman and Deputy Chairman, they are unpaid. The underlying principle is that companies are reviewed by their peers. This ensures that the Panel's approach takes note of business considerations and is sensible and practical.
Can I speak to Panel members or the Panel group about my case?
No. In order to maintain confidentiality, the Panel is not able to discuss a case that is in progress, even with the complainant. If the Panel, or any member of the Group, needs further information then it will contact you, usually in writing, to ask for further information or clarification. The Panel prefers that communication should be in writing in order to preserve a proper audit trail and to avoid misunderstandings. If you telephone the FRRP you will speak to a member of Panel staff, who are best placed to assist.
The Panel has written to say that it is satisfied with the company's response to its enquiries and does not intend to take any further action. I am not happy about this as I still think the company's accounts are wrong. What can I do?
The Panel will explain in its letter to you why it has decided to take no further action but will not enter into any further discussion about its decisions. Your complaint will have been carefully considered. If the Panel thinks that it might be appropriate for you to contact any other authority it will tell you.
How can I become a Panel member?
Vacancies for positions on the Panel, which are unpaid, arise from time to time and are advertised on the FRC website and in the press. Panel members tend to be accountants or lawyers who have held senior positions in industry or practice.
The Panel says it looks at hundreds of cases each year. Why does it issue so few press notices on its results?
The Panel selects accounts for review in a number of ways (see How the Panel works) and includes a control group within its sample. In many cases no question of substance arises from a review of the published accounts. In others, questions are resolved by explanation from the company. In a number of cases the company agrees to improve its disclosures or accounting in the future. The Panel only issues a press notice where a significant correction to published accounts is being made or where there is a case that the Panel considers otherwise merits publicity.
What will happen to the company if the Panel upholds my complaint. Will the directors go to jail?
The Panel's powers are restricted to seeking the correction of defective accounts. Likely outcomes include the Panel issuing a press notice setting out its conclusions in a case, the reasons for those conclusions, and the corrective action that has been agreed with the company. In other cases, the Panel may accept corrective action by a company without the issue of a press notice. Where appropriate, the Panel can refer its findings to other relevant bodies, such as the FSA, DTI or professional institute.
