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Regulatory round-up: May 2023

Author: ICAEW Insights

Published: 30 May 2023

Professional Standards Department updates for IPs and firms regulated or supervised by ICAEW for probate and estate administration, audit, including local public audit, DPB (Investment Business) and anti-money laundering activity.

This month, there are important updates for continuing professional development (CPD) requirements and the revised ICAEW disciplinary framework. Read the Regulatory and Conduct Annual Report for 2022-23 for updates on activity over the past year and look forward to the next year, and we are seeking your input on ICAEW’s review of professional indemnity insurance (PII) requirements. Also, catch up on newsletters published in May, recent AMLbites recordings, updates from HMRC, what to expect during an insolvency monitoring review and updates to probate engagement letters when contacting the Legal Ombudsman.

Regulation in times of change
ICAEW’s regulatory and conduct responsibilities are delivered by the Professional Standards Department (PSD). Our role is to strengthen trust and protect the public by following the 3Es: Enable, Evaluate and Enforce. Read more about our strategy, activities, and the oversight of ICAEW’s regulatory and conduct role in the Regulatory and Conduct Annual Report 2022–2023.

New disciplinary framework: challenging disciplinary decisions
ICAEW’s new disciplinary framework comes into effect on 1 June. In the run-up to the launch, Duncan Wiggetts, Chief Officer for the Professional Standards Department (PSD), tells us more about changes to the processes for challenging disciplinary decisions and orders.

ICAEW reveals details of new CPD requirements
Members and firms can begin preparing for changes to their professional development obligations after ICAEW published detailed guidance on the revised Continuing Professional Development (CPD) Regulations which come into effect in November.

Have your say: review of ICAEW’s professional indemnity insurance regulations
A reminder that ICAEW is conducting a review of its professional indemnity insurance (PII) requirements. The aim is to ensure that the arrangements remain fit for purpose and provide adequate protection to the public, while being mindful of the cost to the profession.

Disciplinary update: May 2023
Take note of the latest disciplinary cases to ensure you or your firm are not making similar mistakes.

VAT at 50, TAM Day and engaging in public practice

Christopher Greenhalgh, Quality Assurance Department Manager, joins the ICAEW Insights podcast to discuss forthcoming changes to ICAEW’s statement on engaging in public practice. Find out what is changing and when.

Quality assurance monitoring feedback results
Find out what our firms thought of the monitoring review process in Q1 2023.

Stepping into the regulatory sphere
Some of the requirements, rules and regulations concerning regulatory matters apply across the board for all firms. Others depend on the types of work you intend to carry out – for example if you want to practise in areas specifically regulated by law such as audit, probate, investment business and insolvency. The ICAEW Professional Standards Department has put together a series of articles offering insights, advice and tips from our Quality Assurance and Regulatory Practice teams to help you navigate the process and avoid common pitfalls.

Serve on our regulatory and disciplinary committees
Find out more about the expertise we are looking for, remuneration rates for accountant and lay members, and how to express your interest.

Don’t miss the latest news
In our regulatory e-newsletter hub, keep up to date with all our most recent regulatory newsletters. In May, we published:

Anti-money laundering (AML) updates

Five new AMLbites videos have been published

  • AMLbites: Risks and red flags – Modern slavery and human trafficking
  • AMLbites: Risks and red flags – Chinese underground banking
  • AMLbites: Risks and red flags – High-risk business sectors
  • AMLbites: Risks and red flags – High-risk countries
  • AMLbites: Risks and red flags – Open-source checks

AML compliance checklist updated
The AML supervision team has updated the AML compliance checklist which is designed as a useful tool to help firms assess their compliance with the Money Laundering Regulations 2017.

HMRC update: Professional money launderers and how they impact the accountancy sector
When we talk about crime, and the harm it causes to communities and individuals, money laundering is rarely more than an afterthought. It shouldn't be; money laundering is key to organised crime. Read the article (and sign up to our webinar) to learn more.

Raising an AML concern
Contact us anonymously if you think an ICAEW supervised firm is breaching the Money Laundering Regulations.

ICAEW AML supervisory role and activity Q1 2023
Find out what we did in Q1 2023 to prevent money laundering.

FCA regulated fees and levies: rates proposals 2023/24
The method of calculating fees penalises smaller firms and sole practitioners. Read our response in full.

Reporting discrepancies in the ‘People with Significant Control’ register
AML firms must now check for discrepancies throughout the business relationship and not just at the outset. Find out more about these changes which took effect from 1 April.

Working in the regulated area of audit

Special entrant route for the Audit Qualification
Find out what criteria will be recognised by ICAEW for overseas auditors seeking to gain the Audit Qualification under the special entrant route.

Working in the regulated area of insolvency

HMRC bulletin: improvements to form VAT7
Read HMRC’s latest update on form VAT7: application to cancel your VAT registration. The questions have been amended to reflect feedback from insolvency practitioners.

Changes to Quality Assurance Department’s (QAD) pre-visit information (PVI) request
In this article, ICAEW’s QAD explains recent changes to its PVI requirements, including requesting information about employee and bounce-back loan creditors. QAD has worked with Turnkey to make it as easy as possible for IPs to provide this information.

Your Insolvency Monitoring Review
New information about what to expect at your insolvency monitoring review.

SIP 16 reviews: how to ensure statements are fully compliant
In this article Louise Eames, Insolvency Case Manager at ICAEW, outlines her recent experience of reviewing Statement of Insolvency Practice (SIP) 16 statements and highlights pointers for insolvency practitioners (IPs) to ensure that their SIP 16 statements are fully compliant.

Working in the regulated area of probate

Update to Part 2 Q, probate engagement letters
Firms authorised or licensed to carry out probate services must make their clients aware of the compensation arrangements and complaints process. In the case of the ‘complaints’ procedure, this should be applied for both legal and non-legal services. The Technical Advisory Services (TAS) team has updated Part 2 Q of the engagement letters helpsheet to reflect changes to the Legal Ombudsman scheme rules, effective from 1 April 2023. Only sections 3, 3.1.3, 3.1.6 and 3.1.9 have been updated. Note that the helpsheet package has not had a full review on this occasion.

Dealing with life events: supporting vulnerable clients
The nature of probate work means most clients will be vulnerablein some way. We look at ICAEW’s guidance for firms offering probate services and discuss why recognising the needs of vulnerable clients is so important.

Probate diversity survey reminder
Be sure that you published the aggregated results on your website by 31 May 2023. This should include a summary paragraph about the results.

Keep updated: Please continue to visit the various sections under Regulation on the ICAEW website to stay current with all the latest regulatory-related guidance.

Be the first to know when articles like these are released. Follow us on LinkedIn and subscribe to our monthly newsletter, Regulatory and Conduct News.

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