Professional indemnity insurance (PII) is compulsory for all ICAEW members who have a practising certificate and engage in public practice. PII is also a requirement of the Audit, Insolvency Licensing and Legal Services Regulations, and the DPB (Investment Business) Handbook and the Licensed Practice Handbook.
Function of the Committee
ICAEW’s PII requirements for members and firms are overseen by the PII Committee. The Committee is responsible for all matters relating to PII including:
- keeping under review ICAEW’s policy on compulsory PII;
- considering revisions to the PII regulations and minimum approved wording;
- approving the form and content of contracts underpinning the PII arrangements;
- nominating ICAEW’s representatives on the Joint Professional Indemnity Insurance Committee and Joint Advisory Panel;
- reviewing membership of the Assigned Risk Pool;
- monitoring compliance with the PII Regulations;
- determining applications for dispensation from the requirements of the PII regulations.
The Committee carries out its responsibilities in accordance with the PII Regulations and is accountable to the ICAEW Regulatory Board.
Operation of the Committee
The Committee compromises at least 4 members and its quorum is three. There are a mix of lay and non-lay members and appointments are made by the Regulatory and Conduct Appointments Committee (RACAC).
Members are appointed for a term of three years which may be renewed once and further extended at the discretion of the RACAC.
The PII Committee normally meets four times a year and meetings take place either virtually or at Chartered Accountants’ Hall in London.
The Committee will sometimes be asked to consider papers outside of meeting, for example if an urgent casework decision of the Committee is required as a firm’s insurance policy is about to expire.
The Committee is assisted by the PII Committee Secretary who is a solicitor, as well as by members of ICAEW’s PII team. Meetings are also attended by ICAEW’s advisers, Marsh Ltd, who provide updates on the current state of the insurance market as well as feedback on the operation of the Assigned Risk Pool.
Applications for membership of the Committee
ICAEW values diversity and is committed to equality of opportunity for all appointments to its committees; appointments to the PII Committee are made on merit. We positively encourage membership from all sections of the community, from all backgrounds and with a broad range of experience, in particular participation from individuals in smaller to mid-size firms and regional firms outside of London. If you are interested in joining the PII Committee please contact Sarah-Jane Owen, PII & Regulatory Manager on sarah-jane.owen@icaew.com