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The Professional Standards update April 2022

Author: Professional Standards Department

Published: 20 Apr 2022

In this month’s update we remind all firms to ensure they are prepared for the new audit Quality Management standards which will come into effect in December. We highlight some of the common inadvertent breaches seen by the Probate Committee and provide you with a summary of the ICAEW's response to recent proposals for a single insolvency regulator. Our AML supervision team have also flagged some key resources to help you understand the impact of UK sanctions against Russia.

In this issue:

Be prepared for Quality Management standards

Even the smallest firm needs to ensure it is prepared for compliance with the new standards from December 2022.

The ICAEW Regulatory Board’s response to the Insolvency Service consultation on the future of insolvency regulation

While we support a number of the proposals in the Consultation Document and believe that the Government should introduce legislation to make the current insolvency regulatory framework more effective, we do not believe that Government has come close to making out a convincing evidential case for removing the Recognised Professional Bodies from their important role in insolvency regulation.

New audit guidance

Support for ICAEW audit firms to work through the consequences of the Ukraine crisis.

Key resources on sanctions

Our AML supervision team have highlighted some key resources to help you understand the impact of UK sanctions against Russia.

  1. ICAEW sanctions FAQs
    Frequently asked questions about changes to UK sanctions against Russia.
  2. AMLbites: Sanctions
    This short video takes you through how sanctions work and what your firm needs to consider.
  3. ICAEW guidance on OFSI licences
    Find out when you can apply for a licence to interact with a sanctioned entity.
  4. Office of Financial Sanctions Implementation - GOV.UK
    Government guidance on the nature of financial sanctions.
  5. OFSI Consolidated List Search (hmtreasury.gov.uk)   
    Search the OFSI list of entities and individuals subject to sanctions for free.
  6. CCAB joint statement following recent and on-going developments in Ukraine
    CCAB guidance on professional and ethical considerations under AML legislation.

Economic crime: gatekeeper or enabler?

With fraud on the rise, we look at how ICAEW is working with other stakeholders to ensure its member firms stay at the forefront of the fight against economic crime, and avoid unwittingly becoming professional enablers.

Medium term legal services strategy consultation

Some minor amendments have been made to the IRB’s Legal Services Strategy and we now invite your feedback on the updated strategy before we update our Legal services business plan.

Probate - Common pitfalls

To help your firm avoid inadvertent breaches of the Probate Regulations, we have highlighted some of the common breaches we see. These issues can lead to potential regulatory action and interruption of probate services so it’s important that you take note to ensure your firm avoids these common pitfalls.

AML webinar: client verification

How to verify your client ICAEW’s AML supervision team use case studies to demonstrate the stages of client verification and how these should link to your AML risk assessment.

Insolvency compliance and SIP 11 annual review requirements

Join members of our Quality Assurance team to hear more about the obligation to complete insolvency compliance reviews and an annual review of financial controls.

HMRC bulletin: Deemed consent procedures update

From 1 June 2022, if a company or insolvency practitioner knows HMRC is already dealing with the company on a compliance matter, please send any initial notification of a Creditors’ Voluntary Liquidation procedure directly to the HMRC officer handling that correspondence – not to the central mailbox.

2022 fee reminder

Your firm's regulatory fees were due by 1 January 2022. Please check your email inbox or contact us if you have not submitted your payment.

Consultation on proposed changes to ICAEW’s CPD Policy

Increased regulatory expectations and the audit reform agenda underscore the need for ICAEW to act to maintain and enhance public trust in the profession. ICAEW is therefore proposing to make changes to its CPD policy with the aim of improving and maintaining the professional, technical, and business excellence of ICAEW Chartered Accountants.

We are proposing to introduce:

  •  An annual mandatory ethics CPD requirement for all members.
  • The introduction of risk-based CPD requirements based on the risk profile of a member’s area of work (particularly the level of risk to the public if there were unforeseen adverse consequences resulting from a member’s actions, omissions or advice).
  • The requirement for a minimum number of verifiable CPD hours for each of the three Risk Categories.

We are proposing a phased introduction of this policy.

April disciplinary update

Familiarise yourself with the latest cases

The April disciplinary update is now available, and we recommend reading the update to familiarise yourself with the latest cases we are seeing.

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