FRC publishes new disciplinary arrangements for accountants
News types: Consultation Announcement
Published: 1 July 2013
PN 066
The Financial Reporting Council (FRC) has today published The Accountancy Scheme which updates the independent disciplinary arrangements applying to members and member firms of the participating bodies². The FRC deals with cases of potential misconduct which raise or appear to raise important issues affecting the public interest in the UK.
The new Scheme introduces, among other things:
- A change to the definition of misconduct to ensure the FRC investigates the right type of cases,
- The ability to conduct enquiries before initiating an investigation,
- New arrangements for monitoring individual cases by members of a Case Management Committee,
- A new power to issue interim orders,
- Amendments to reduce the potential for delay,
- Enhanced independence from the professional bodies by removing the requirement to consult with them before deciding to commence an investigation and amending the procedure for making future changes to the Scheme,
- A provision to facilitate the early resolution of disciplinary cases without the need for a tribunal hearing.
Paul George, Executive Director of Conduct at the FRC, said,
“Amending the disciplinary schemes to make them more independent, efficient and effective was a key part of the package of FRC reforms introduced in 2012. Revisions to The Accountancy Scheme therefore mark a significant step in the implementation of those plans.”
Notes to editors:
- The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
- The participants of the new scheme are ICAEW, CIMA, ICAI, ACCA and ICAS. CIPFA is expected to be in a position to endorse the new scheme later this year.