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Tribunal Panel Member Statement of Independence Guidance Notes (2022)
Tribunal & Appeal Panel Statement of Independence Guidance notes
1This Guidance is issued by the Board under the Accountancy Scheme and the Actuarial Scheme, which empower the Board to provide any Tribunal with guidance concerning the exercise of its duties under each Scheme, who shall have regard to such guidance. It also applies to the Tribunal and Appeal Panel for the FRC's Audit Enforcement Procedure and to the Tribunal Panel under the FRC's Public Interest Entity (“PIE”) Auditor Registration Regulations (the "PIE Auditor Regulations").
2This document provides guidance to members of the Tribunal Panel who will be required to complete a Statement of Independence whenever they are approached by the Convener to serve on a Tribunal. The declarations in this form are designed to solicit information that might be relevant to a member's suitability to sit on a particular Tribunal. The form should be sent to the Governance Team ([email protected]), who will provide it to the Convener. It is solely within the discretion of the Convener whether any information provided should result in a member not being appointed to that Tribunal, or whether the information should be disclosed to the parties or on the FRC website.
3It is crucial that members of a Tribunal should act, and be seen to be acting, objectively and impartially. They should be free of any conflict of interest or any perceived conflict of interest. They should not be biased or prejudiced and should not be involved in taking decisions where there is a real likelihood that they may be perceived to be biased or prejudiced.
4A conflict of interest and/or suggestion of bias may arise in the following circumstances:
- Having a financial interest in any entity connected with a case or an Appeal under the PIE Auditor Regulations;
- Receiving or being due to receive a pension from an entity connected with a case or an Appeal under the PIE Auditor Regulations;
- Being a current or former partner, member, director or employee of a firm which is the subject of:
- the Formal Complaint under the Accountancy Scheme or the Actuarial Scheme;
- the Allegation under the Audit Enforcement Procedure; or
- the Appeal under the PIE Auditor Regulations;
- Being a current or former director, officer or employee of an entity connected with a case or an Appeal under the PIE Auditor Regulations;
- Acting or having acted in a professional capacity in relation to the subject matter of a case or an Appeal under the PIE Auditor Regulations;
- Having a spouse, partner or immediate family member who has one of the interests outlined above;
- A close personal, business or family relationship with an individual or firm which is the subject of:
- the Formal Complaint under the Accountancy Scheme or the Actuarial Scheme;
- the Allegation under the Audit Enforcement Procedure; or
- the Appeal under the PIE Auditor Regulations;
- Previous involvement in a dispute with an individual or firm which is the subject of the Formal Complaint, the Allegation or the Appeal under the PIE Auditor Regulations (other than when sitting on a Tribunal for the FRC);
- Involvement in other legal or disciplinary proceedings connected with a case or with an Appeal under the PIE Auditor Regulations;
- A past or continuing professional involvement with any individual, firm or matter connected with a case or an Appeal under the PIE Auditor Regulations;
- Publication of views or comments relating to any individual, firm or matter connected with a case or an Appeal under the PIE Auditor Regulations;
- Involvement in non-audit services provided by a firm which is the subject of an Appeal under the PIE Auditor Regulations.
5Any information pertaining to these examples must be disclosed to the Convener. This list should be considered neither prescriptive nor exhaustive.
6Members will not necessarily be precluded from sitting on a Tribunal simply because they make disclosures pursuant to Statement B of the Statement of Independence.
7Some or all of the information provided may need to be disclosed if the member is to be appointed to a Tribunal. Such disclosure would never be more extensive than that necessary to ensure that there is transparency and to prevent any suggestion of perceived bias or prejudice. This may entail disclosure on the FRC's website. If the information given (including information about the value of an investment) in answer to any question is so sensitive that a Member would wish it not to be disclosed, or would wish to limit the circumstances in which it is disclosed, that should be indicated. The text of any disclosure will normally be checked with the member, but if it is not possible to contact the member and there is no indication of sensitivity the Convener will use his discretion and may disclose information declared either to the relevant parties or on the FRC's website.
8When completing the form any doubt should be resolved in favour of disclosure.
Issued by the FRC Board September 2022
The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from an omission from it.
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