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Professional Standards Update February 2026

This month’s update includes the launch of our new Regulation and Conduct Strategy video series, alongside the latest disciplinary cases highlighting common pitfalls to avoid. You’ll also find new PCRT guidance on the use of AI in tax, an update to the identity verification timeline, and invitations to two upcoming webinars. Plus, catch up on our latest AMLbites on AML supervision, share your views on two Legal Services consultations, and read our latest article on Shared Client Money Accounts.

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Key reminders and updates

Disciplinary update: January 2026
Take note of the latest disciplinary cases to ensure you or your firm are not making similar mistakes.
ICAEW Regulation and Conduct 2030 Strategy
Find out about the ICAEW Regulation and Conduct strategy (led by the ICAEW Regulatory Board), its strategic pillars and our commitments as an improvement regulator.
Shared Client Money Accounts: A Compliance Risk for Firms
We have identified instances where associated or commonly controlled firms are using shared client money accounts, contrary to the Clients’ Money Regulations. This article explains the requirements and what firms need to do to ensure compliance.
Professional Conduct in Relation to Taxation bodies publish guidance on using AI in tax
The seven Professional Conduct in Relation to Taxation (PCRT) bodies and associations, including ICAEW, have published guidance to help members apply the PCRT fundamental principles when using AI tools in tax work.
Raising an AML concern
If you believe a firm supervised by ICAEW is breaching the Money Laundering Regulations 2017, you can raise your concern confidentially.
Feedback sought on changes to solicitors’ accountants’ reports arrangements

The Solicitors Regulation Authority has launched a consultation outlining potential changes to the SRA Accounts Rules. ICAEW members who prepare accountants’ reports under the Solicitors Regulation Authority Accounts Rules need to understand how new proposals will impact the work they undertake. The deadline to respond is 20 February.

Crossing the Line District Society screening

On Thursday 19 March, join us at the University of Hertfordshire for a screening of “Crossing the Line”, the fourth film in ICAEW’s award-winning training series.

Audit

Check and monitor your firm’s audit eligibility

Use our tool to check if your firm is still eligible to carry out audit work following Audit Regulations changes on audit firm control.

Anti-Money Laundering (AML)

Identity verification update - presenter delays

From 18 November 2025, identity verification became a legal requirement for anyone setting up, running, owning or controlling a UK company under the Economic Crime and Corporate Transparency Act. The planned Spring 2026 deadline for presenter measures has now been postponed until no earlier than November 2026, to allow more time to complete the director and PSC transition period and respond to stakeholder feedback.

Your guide to the role of money laundering reporting officer

A unique set of resources for all in an AML compliance role, read the section that corresponds with your role for full guidance on your responsibilities, and a reminder of essential resources.

UKFIU podcast: Episode 27

Episode 27 of the UKFIU's podcast is now available. This episode focuses on payment diversion fraud in the legal sector, with a specific focus on legal professionals involved in conveyancing.

FATF ME & Proliferation Financing Survey

Regulated firms are invited to complete this survey which will help shape the update to the Proliferation Financing National Risk Assessment. Respond by 31 March.

ICAEW AML supervisory role and activity in 2025

Find out about our AML supervisory role and activity in 2025.

Practice Assurance

Do your clients know the difference between and accountant and a Chartered Accountant?`

To be an ICAEW Chartered Accountant or regulated firm sets you apart from the rest and it’s important your clients are aware of the benefits. Share our LinkedIn campaign to promote your specialist experience, technical skills, qualifications and accountability to your clients.

Legal Services

LSB consults on new policy to strengthen diversity across the legal profession
  • Article
  • 26 Jan 2026
The Legal Services Board (LSB) is seeking views on its draft statement of policy, “Encouraging a diverse legal profession”. The proposals outline clear expectations for regulators to improve equality, fairness and access across legal services. ICAEW will be submitting a response and encourages firms and individuals to share their views ahead of the 2 March deadline.
Spotlight on: early resolution
  • Article
  • 05 Feb 2026

In the latest Legal Ombudsman Spotlight article on early resolution, it highlights the benefits of resolving concerns early, sharing steps to help legal services providers deliver clearer responses, address issues promptly and improve outcomes for clients.

Have your say on the Government’s proposals to raise funds through interest accrued on clients’ accounts
  • Article
  • 23 Jan 2026
The Ministry of Justice (MOJ) is consulting on proposals to introduce an Interest on Lawyers’ Client Account Scheme (ILCA) which would divert a portion of interest on client money held by law firms to the MOJ to fund and strengthen the justice system. Deadline to respond is 9 March 2026.