Setting up in practice

The checklist below sets out the key matters you need to consider when setting up in practice.

Checklist

1. Do your proposed activities constitute engaging in public practice?

You should read the Definition of public practice to confirm that your activities will fall within the definition of engaging in public practice.

• More on the Definition of public practice

2. You will need an ICAEW practising certificate

If your activities fall within the definition of engaging in public practice, you will need an ICAEW practising certificate.  This applies irrespective of whether you hold a practising certificate with another body, intend to use the firm description “chartered accountant” or intend to use the ICAEW logo.

• More on the ICAEW practising certificate

3. You must obtain adequate professional indemnity insurance cover

Professional indemnity insurance (PII) is compulsory for all ICAEW members who are engaged in public practice and have a practising certificate, and are resident in the UK or Ireland or who are engaged in public practice in the UK or Ireland.

• More on PII

4. Register with the ICO

You need to register with the Information Commissioner’s Office (ICO) under the Data Protection Act 1998. 

• More on Data Protection

5. Comply with the Money Laundering Regulations 2007

If you have questions about money laundering matters or the regulations, you may wish to contact the free Money Laundering helpline on +44 (0)1908 248 250. You need to ensure you comply with the Money Laundering Regulations 2007 and assess whether you need to be registered for supervision with the ICAEW under the MLR, even if you are not providing accounting services.

• More on Money Laundering Regulations 2007

Our Practice Support Services (PSS) team [link to PSS pages] can provide bespoke coaching to partners and staff on the Money Laundering Regulations 2007 and the impact of these on your firm. The PSS team can also review your firm’s client due diligence procedures and carry out anti-money laundering compliance reviews. For more information, please contact Practice Support Services [link to PSS] on +44 (0)1908 248250.

6. You must run your practice in compliance with the Practice Assurance standards

Guidance on the standards and their practical applicaton, the annual return and monitoring. 

• More on Practice Assurance

7. If you intend to hold clients’ money, you must comply with the Clients’ Money Regulations

You may also want to consult the Clients’ Money Regulations helpsheet (PDF 114KB/12 pages)

• More on Clients' Money regulations

8. If you intend to undertake work in the regulated areas of audit, insolvency or investment business

You should consult the specific guidance and regulations:

Audit

If you intend to undertake regulated audit work you will need to:

• Hold the audit qualification
• Apply to become a registered auditor(PDF 207KB/18 pages)
• Apply to nominate a responsible individual(PDF 98KB/7 pages)
• Comply with the Audit Regulations and Guidance 

Investment business

If you intend to offer investment business advice:

• For non-mainstream activities, apply for a designated professional body (DPB) licence
• Comply with the DPB Handbook 
• For mainstream activities, apply for to the Financial Services Authority (FSA) for authorisation
• Comply with the FSA Handbook

Insolvency

If you intend to take insolvency appointments:

• Apply for an insolvency licence 
• Comply with the Insolvency Licensing Regulations 
• Consult R3's publications for insolvency professionals which include 'Setting yourself up in practice'

9. Consult the Practice helpsheets

Providing clear step by step guidance on a range of key issues including Purchase of Fees, Credit Control, Firm Names and Letterheads, Changes in a Professional Appointment, Clients’ Money Regulations, Corporate Practice and much more.

• View the Practice helpsheets 

10. Consult our Practice Advisory Services

We can help you by talking through any issues related to the setting up and running of your practice such as:

• Marketing
• Setting charge out rates
• Buying/selling fees
• Controlling working capital
• Compliance with regulations
• Partnership agreements
• We provide expert advice and guidance, in confidence. (We are privileged to be exempted by council from the duty to report misconduct.)

The helpline is free to members and affiliates. Call us in confidence on +44 (0)1908 248 250 or consult our Practice Services page.

Self assessment questionnaire

You may also find it helpful to work through the self assessment questionnaire Going into Practice – Are you ready? (Word 382KB/5 pages)