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Regulatory news 2022

A round-up of regulatory news items

A round-up of regulatory news items

December

VAT deregistration requests
HMRC is trialling a dedicated mailbox for insolvency practitioners to request VAT deregistration confirmation.

Switching the dial
ICAEW’s anti-money laundering (AML) educational drama All Too Familiar is being used by firms of all sizes to support in-house training. Caroline Smale and Simon Morrison from Bishop Fleming tell us how the film tapped into people’s emotions and changed how staff think and feel about AML.

AASG Anti-money Laundering Alert - Register of Overseas Entities - verification work
This alert documents key risks that firms should be aware of when completing verification work in relation to the registration of overseas entities. It has been produced by the Accountancy Information Sharing Expert Working Group. Firms should use this alert to support their staff training. There are no access restrictions to this bulletin.

Professional Standards update: December 2022
In this month's issue we, highlight the new UK Audit Regulations that came into effect on 5th December, provide you with a new HMRC issued bulletin and, remind you of all our most recent newsletters. There’s an invitation to the 2023 Probate Diversity Survey webinar and we also ask you to give your feedback on Regulatory & Conduct News.

Which audit form and when?
Please see our newly updated guidance on which forms are needed when a firm applies for audit registration. This includes the forms we need when a firm changes its legal entity (eg, a partnership becoming an LLP) and when firms merge with or acquire other audit registered practices.

New UK Audit Regulations
New UK Audit Regulations and Guidance are now in effect. The regulations primarily take account of the new registration arrangements with the FRC for firms that audit PIE entities.

November

AML – the essentials, issue 26
In our latest AML update we highlight the results of our recent thematic reviews on sanctions and COVID-19 support schemes. We also give an update on the Register of Overseas Entities and provide a link to the UKFIU’s recent webinar showcasing its new suspicious activity reporting portal. There is also a reminder about the range of AML resources that are available including our AML helpline.

Audit News issue: 72 November 2022
Welcome to Audit News 72, your regulatory update containing the latest technical guidance and best practice advice.

Probate News Issue 20 – November 2022
In Issue 20 of Probate News, we highlight a compliance issue our Quality Assurance Department is finding during monitoring reviews and provide information about the next probate diversity survey. We also highlight resources for probate firms.

Audit monitoring report 2021/22
A key part of our role as an improvement regulator is to provide help and support to our firms; to ensure you have the tools and resources to help your firm maintain the expected standards. The Audit Monitoring Report is an important resource for firms regulated by ICAEW for audit services.

Tax clearance requests in Members Voluntary Liquidations
HMRC guidance to avoid further delays in getting tax clearance in MVL cases.

How accountancy firms are helping to detect COVID fraud
ICAEW firms are playing a key role in identifying and dealing with COVID fraud. We talk to Michelle Giddings, ICAEW’s Head of AML, about a recent survey that shows how firms are encouraging clients to pay back ineligible claims, and supporting law enforcement by reporting fraudulent activities.

Professional Standards update: November 2022
In this month's update we share: examples of good practice that have been identified during recent monitoring visits to audit firms; the results of our recent AML thematic reviews focusing on COVID support schemes and sanctions; and the findings of the Quality Assurance public sector monitoring activity in 2021-22. We also look at the difference between independent and restricted financial advisers, issue clarification regarding the Insolvency Code of Ethics' and highlight the latest disciplinary cases.

Good practice when taking on new audits
Recent intelligence shows that there are significant numbers of UK companies seeking new auditors and that the audit tender market is buoyant. ICAEW’s Quality Assurance Department share examples of good practice that has been identified during recent calls and visits to audit firms.

Disciplinary update: November 2022
Take note of the latest disciplinary cases to ensure you or your firm are not making similar mistakes.

PIE audits: new registration requirements
The regulatory regime for firms auditing Public Interest Entities (PIEs) is changing. We look at new FRC registration requirements, plans to expand the definition of a PIE, and what audit firms need to consider now and in future.

Insolvency Code of Ethics – Internal Audit
Read clarification issued by the Recognised Professional Bodies regarding the Insolvency Code of Ethics' reference to 'audit related work'.

Enhanced ICAEW membership
From January 2023, all ICAEW members will have access to additional content from the faculties and communities as part of their ICAEW membership. ICAEW licensed insolvency practitioners will continue to have access to all the resources from the Restructuring and Insolvency Community and ICAEW affiliates will continue to receive access to all the same resources as currently.

OFSI issue general licence to permit the payment of legal fees to designated persons
As a result of the increasing number of new designations under the Russia and Belarus regimes, and the correlating increase in the number of those seeking a licence from OFSI for the payment of legal fees, OFSI has issued a general licence to permit the payment of legal fees owed by individuals and entities designated under either of these regimes. The licence was issued on 28 October 2022.

Hitting the mark
Read how Gibson Appleby, a small firm of chartered accountants based near Brighton in Sussex, used All Too Familiar to engage partners and other staff, and build on its existing anti-money laundering (AML) training resources.

October

Local audit quality inspection results published
88% of financial audit reviews carried out by ICAEW’s Quality Assurance Department (QAD) in 2021-22 were graded good or generally acceptable. The results of these reviews form part of the Financial Reporting Council’s (FRC) summary report on 2021/22 local audit inspections. Overall, the FRC rated 70% of local audits as good or only requiring limited improvements.

Watch our short video which summarises the findings of QAD’s public sector monitoring activity in 2021-22.

Trevor Smith, Director, Quality Assurance said “While recognising there are areas for improvement, we are pleased to see that the number of audits categorised as good or requiring limited improvements has remained consistent with 2020/21.”

As the sole Recognised Supervisory Body (RSB) for local audit, ICAEW is responsible for the licensing, registering and monitoring of auditors who carry out audits of relevant authorities, as defined in schedule 2 of the Local Audit and Accountability Act 2014.

Quality Assurance monitoring feedback results
Find out what our firms thought of the monitoring review process in Q3 2022.

Our role as an anti-money laundering (AML) supervisor
226 AML monitoring reviews were carried out with ICAEW AML supervised firms in Q3 2022. 38.5% were at high or high-medium risk of being used to enable money laundering. Read more about our latest work as the UK’s largest accountancy professional body supervisor for anti-money laundering.

Know your client
ICAEW’s AML educational drama All Too Familiar is designed to engage staff and support in-house training. We talk to Sophie Parkhouse at Albert Goodman about how she used the film to stimulate discussions around AML culture. She also offers some tips on making the most of the film’s content across different service lines.

Does your firm automatically sanction screen clients?
The pace of change and the volume of sanctions imposed in 2022 has increased the risk of ICAEW supervised firms inadvertently enabling sanctions evasion. As part of our work as an anti-money laundering supervisor, we recognised the need to perform monitoring activity to identify and mitigate the risks. The results of the ICAEW Sanctions Thematic Review 2022 indicate firms have increased the intensity and frequency of their existing sanctions screening procedures. Use this review to benchmark your firm’s policies and procedures for screening clients, to assess the level of risk to which your firm may be exposed and to mitigate these risks by implementing the policies and procedures outlined in this review.

Putting AML in perspective
Hear from Seymour Taylor, one of the longest established accountancy practices in High Wycombe and the Thames Valley who used All Too Familiar to 'improve people's perception of how important anti-money laundering requirements are'.

Training film wins awards for ICAEW and HMRC
An anti-money laundering educational drama film, produced by ICAEW in collaboration with HMRC, has won three awards at the 2022 Association Excellence Awards.

Referrals to financial advisers: staying compliant
When accountancy firms refer clients to financial advisers, they need to consider a range of regulatory and ethical issues. We look at the difference between independent and restricted advisers, and discuss how you can ensure you stay compliant with ICAEW’s Code of Ethics and legal requirements.

Professional Standards update: October 2022
This month we focus on compliance reviews, how to make the most of the process and what are the common problems firms can easily avoid. We also look at trends in the types of complaints we are receiving and the reasons for those trends. Our Audit Risk Manager has issued a reminder about your responsibilities when issuing cessation statements, following a sharp increase in the number of firms seeking new auditors, there are invitations to two live insolvency webinars and a reminder that firms will need to take part in the biennial probate diversity survey next spring. Finally don’t miss the opportunity to apply for remunerated roles on the ICAEW Regulatory Board and our regulatory and disciplinary committees.

Insolvency News, Issue 11 October 2022
In this issue of Insolvency News, the Insolvency Service confirms work it is undertaking to support you in relation to Bounce Back Loans, HMRC issues new updates including one regarding Director’s Loan Accounts and there is an opportunity to sign up for two live insolvency webinars. We also invite you to apply for a remunerated role on our Insolvency Licensing Committee and highlight two recent articles from our series on the Future of Insolvency.

Calling out unprofessional behaviour
ICAEW’s Code of Ethics outlines the standards of behaviour expected of chartered accountants and affiliates including those we regulate for reserved activities. We look at recent trends in ethics complaints received by ICAEW, and ask what firms and individuals can do to prevent and report problems. The Code of Ethics applies to all ICAEW members and ICAEW member firms and requires them to adhere to five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

Compliance reviews: a positive learning experience
Annual compliance reviews help firms and individuals ensure they continue to meet their regulatory obligations. Whether your reviews are mandatory or good practice, experts from ICAEW’s Quality Assurance Department (QAD) offer some advice on how to make the most of the process.

Disciplinary update: October 2022
Take note of the latest disciplinary cases to ensure you or your firm are not making similar mistakes. Since the last update four tribunal orders have been published. Seven consent orders and three fixed penalty orders have also been issued by the Investigation Committee.

Auditor resignations: your responsibilities
The number of UK companies seeking new auditors has risen sharply in the last couple of years. This has shined a spotlight on the resigning auditors’ responsibilities to issue cessation statements under section 519 of the Companies Act 2006. ICAEW’s Quality Assurance Department would like to remind audit firms of their responsibilities in this area.

Changes to ICAEW CPD Policy
In July 2022, following approval from Council, ICAEW announced changes to its CPD policy which will apply to all ICAEW members, ICAEW member and regulated firms, and non-members who are registered with ICAEW for a regulated activity. We would like your input to help shape the policy.

The consultation is open from 29 September – 27 October.

Process for DLAs written off as part of corporate insolvency procedures
HMRC has designed a new voluntary process to allow a more data driven and targeted approach to the issue of Director’s Loan Accounts (DLAs).
This specifically applies in situations where DLAs are written off as part of a corporate insolvency procedure because the debtor cannot afford to repay the loan to the company.
The process is entirely voluntary, and insolvency practitioners don’t need to use it if they don’t wish to.

Cryptoassets webinar recording: how to spot money laundering red flags 
Our expert panel help you understand what is meant by cryptoassets, how crypto can be abused by criminals and what the warning signs or risk factors might be. They also discuss case studies and provide the view of a money laundering reporting officer. 

You can also listen again to any of the other webinars presented by our AML supervision team.

ICAEW Regulatory Board (IRB) – vacancy for an ICAEW member
The IRB is looking to appoint an ICAEW chartered accountant member (non lay) to join the IRB. From 1 January 2023, all IRB members will be eligible to receive a fee of £385 per meeting, with pro rata payments for other commitments. Expenses are reimbursed in line with ICAEW policy.

September

Apply to serve on a regulatory or disciplinary committee
We are recruiting for various roles across our regulatory and disciplinary committees. All significant decisions on regulatory and conduct matters are made by ICAEW regulatory and disciplinary committees. These committees operate independently from ICAEW staff and comprise of a parity of lay and chartered accountants with a lay chair who has a casting vote. Find out more about the expertise we are looking for, remuneration rates for accountant and lay members and how to apply.

Professional Standards Update: September 2022
Read the September update from ICAEW Professional Standards.

Creditor bankruptcy and liquidation petition deposits to rise
The Insolvency Service is introducing changes to the deposits paid to initiate creditor bankruptcies and compulsory liquidations. The petition deposit, the amount that needs to be paid up-front to seek an order, will be increasing in all cases where a petition is filed at court on or after 1 November 2022.

Access the stakeholder briefing pack and  details on these changes.

ISQM1: three months to complete development of your system of quality management

There are about three months to go before audit firms need to comply with the International Standard on Quality Management 1 (ISQM1) from 15 December 2022. The ICAEW Quality Assurance Department (QAD) expects that all active audit firms will now, as a minimum, have a proper plan to ensure that their system of quality management (SoQM) will be operational from the implementation date. This update provides guidance on what is required.

Creating a buzz around AML
In our latest article on how firms are using ICAEW’s AML educational drama All Too Familiar, we talk to a money laundering reporting officer about why the film engaged staff in a way he had found difficult with more conventional approaches to training.

Taking risks with PII run-off is a false economy
Run-off cover for your professional indemnity insurance (PII) is critical to protect your clients, your firm and yourself. We look at why this cover is so important, and how ignoring the issue could put you at financial and compliance risk.

Payroll processing: stop and think about AML
Firms are using ICAEW’s AML educational drama All Too Familiar to support in-house training in a variety of ways. Caroline Wheeler, partner at Bevan Buckland LLP, tells us how the film helped staff in her firm’s payroll department when they took on an unusual number of new clients. 

Disciplinary update: September 2022
Since the last update, two disciplinary tribunal orders have been published. Four consent orders and one fixed penalty orders have also been issued by the Investigation Committee.

Risk alert for new audit tenders
As ICAEW registered auditors will be aware, in response to changes in the audit market, the growth of challenger firms and some more complex audits moving away from the largest audit firms, we have increased our activities to monitor the audits undertaken across firms registered for audit with ICAEW. Our monitoring of auditor cessations and other recent intelligence information shows that there are significant numbers of UK companies seeking new auditors.

HMRC guidance: Tax Clearance Requests in Members Voluntary Liquidations
HMRC has changed its process for giving tax clearance in MVL cases. From 12 September 2022 you’ll no longer need to post these requests to two separate areas of HMRC.

Fresh perspectives
The ICAEW Regulatory Board (IRB) ensures ICAEW’s regulatory and disciplinary work promotes and maintains the highest professional standards. We talk to Claire McManus, one of the board’s newest members, about why a people-focused approach is close to her heart, how the wider environment influences professional conduct, and her interest in ‘left field’ questions.

August

2022 Practice Assurance Monitoring Report
Read our 2022 Practice Assurance Monitoring Report to understand our most common findings and to access resources to support compliance at your firm. The report includes the top 10 issues we see and you should share these results with your staff to ensure you and your firm are not making the same mistakes.

The results of our 2021 monitoring activity also include a focus on assurance and other reports such as:

  • Independent Examination Reports on Charities
  • Solicitors Regulation Authority Accounts Rules
  • Service Charge Accounts
  • Assurance reports on Client Assets to the Financial Conduct Authority

Probate News, issue 19
The latest issue of Probate News includes an invitation to respond to our 2023 probate fees consultation, reminders of key guidance and resources such as a list of common inadvertent breaches of the Probate Regulations and an article that highlights the benefits of carrying out client satisfaction surveys.

Insolvency news, Issue 10
This issue includes guidance on insolvency compliance reviews and how to avoid a breach of the ICAEW Insolvency Licensing Regulations, access to updated checklists for personal and corporate casework, invitations to join us for the Restructuring & Insolvency Community autumn roadshows and a pension scheme matters for insolvency professionals’ webinar.

Dealing with vulnerable clients guidance
ICAEW guide to dealing with vulnerable clients, in accordance with the regulatory objectives of the Legal Services Act 2007.

Pension issues for insolvency practitioners
This webinar will guide you through practical issues faced with company pension schemes and address statutory requirements and common issues such as working with Auto Enrolment providers, calculating unpaid pension contribution claims and determining which pension liabilities transfer under TUPE.

Guidance on the UK's ban of the provision of accountancy services to Russia
The government has published the statutory instrument imposing a ban on accountancy and other services. The legislation came into effect from midnight on the 21 July 2022.

Professional Standards update: August 2022
In this month’s regulatory update we highlight new AML resources such as the 2021/22 AML supervision report and a new AMLbites video on politicially exposed persons. We give an update on the PII market, and invite you to feedback on a proposed probate fee increase for 2023. We also highlight new guidance for auditors from the FRC and changes to The Money Laundering Regulations which are due to take effect in October. There are also reminders of webinars which are taking place in September including one for insolvency practitioners on the topic of pension issues.

An easy sell for AML
Firms of all sizes are using ICAEW’s AML educational drama All Too Familiar as a way of supporting in-house training. In our latest case study, we find out how the film has helped to strengthen and underpin the AML culture at BHP, one of the largest independent firms of chartered accountants in the north of England. 

PII market update: COVID, sanctions and cyber
In our latest update on professional indemnity insurance (PII), we look at the continuing hard market and how some key issues – from COVID-19 and Russian sanctions to the ever-present risk of cyber attacks – could affect the renewal process.

How satisfied are your clients?
Finding out what clients think about your firm helps you improve your services, address any problems early on, and build better relationships. One way of doing this is to carry out regular client satisfaction surveys. We look at why client feedback is so important and provide some tips on how to gather useful data.   

New insolvency practitioners webinar
Insolvency practitioners who are newly licensed by ICAEW should watch this webinar to understand the regulatory framework, for information around how we monitor our insolvency practitioners and for a list of useful resources.

Quality Assurance monitoring feedback results
Find out what our firms thought of the monitoring review process. (These results are from reviews undertaken during the first half of 2022.

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

July

Our role as an AML supervisor
347 AML monitoring reviews were carried out with firms in Q2 2022. 39% were at high or high-medium risk of being used to enable money laundering. Read more about our latest work as the UK’s largest accountancy professional body supervisor for anti-money laundering.

2023 Probate fees consultation

As an approved regulator and licensing authority for probate services, our activities are guided by and support the Legal Services Board (LSB) strategic themes; fairer outcomes, stronger confidence and better services, to strengthen trust and protect the public by enabling, evaluating and enforcing the highest standards in the profession.

Recognising inflationary pressures and to continue to deliver our ongoing programme of activity to fulfil these objectives and those of the Legal Services Act, we propose to increase probate registration fees by 7% for 2023.

2021/2022 AML supervision report
Read our 2021/22 Anti-money Laundering Supervision Report for the results of our monitoring visits, the outcomes of those visits and enforcement action taken. This report also summarises all of our anti-money laundering supervisory activity during the period. Firms should pay particular attention to the most common issues we see section which includes links to resources to support compliance.

ICAEW announces new CPD policy from November 2023
From November next year, ICAEW will be introducing a new policy that will give members greater clarity when it comes to Continuing Professional Development.

AMLbites: Politically exposed persons
This short video from ICAEW's quality assurance team summarises why politically exposed persons - or PEPs - and their relatives can be a money laundering risk, what the regulations say, how a PEP is defined and what other risk factors might increase the risk profile of the PEP.

July 2022 Statutory Instrument to amend Money Laundering Regulations

The government has published its response to the HMT consultation entitled: Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022, which concluded in October 2021. The Statutory Instrument has been laid in Parliament.

Our role as the largest insolvency regulator in the UK
Find out more about our role including the support we provide to firms, monitoring reviews and sanctions.

July 2022 statutory instrument to amend Money Laundering Regulations
The government has published its response to the HMT consultation entitled: Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022, which concluded in October 2021. The Statutory Instrument has been laid in Parliament. 

Professional Standards Update: July 2022
Read the July update from ICAEW Professional Standards.

AML supervision team webinar: cryptoassets
Join the National Crime Agency and our anti-money laundering professionals on the 21 September for our upcoming AML webinar, as they help you to spot the red flags and the money laundering methodologies.

Locking Russia out of UK accountancy services
UK foreign secretary, Liz Truss, recently announced a ban on providing accountancy services to Russian businesses. As the sector awaits further details and a timetable for implementing these latest sanctions, Michelle Giddings, ICAEW’s Head of AML, outlines the likely implications and what firms can start doing to prepare.

A disciplinary framework fit for the future
ICAEW’s disciplinary framework is being simplified and updated to make it more efficient and accessible. Ahead of the changes, Duncan Wiggetts, ICAEW’s Chief Officer for Professional Standards, explains the rationale behind the reforms and discusses how the revamped framework better meets the needs of a modern regulator.

Disciplinary update: July 2022
Take note of the latest disciplinary cases to ensure your firm is not making similar mistakes.

Russian Export Sanctions Prohibitions (US and EU)
New guidance on the professional services that have been prohibited and the organisations and individuals that are impacted by EU and US export prohibitions.

All Too Familiar: hitting a nerve
All Too Familiar, an educational drama created by ICAEW in collaboration with HMRC, examines the powerful role of professional scepticism in reducing the risk of economic crime. In the first of a series of articles looking at the different ways firms of all sizes are using the film to inform and train staff, we talk to a senior partner in a small independent practice

June

Reporting matters of material significance to charity regulators
The Charity Commission for England and Wales wants to see ICAEW audit firms do better at meeting their duty to report matters of material significance including modified audit opinions for charities. In this article, we look at why these reports are so important, and what firms can do more widely to improve their reporting of matters of material significance.

Enforcement Notice: Debt Management Ads by Insolvency Practitioners

The Advertising Standards Agency and the Committee of Advertising Practise have issued an enforcement notice regarding debt management adverts by insolvency practitioners and lead generation companies.

'Insolvency practitioners and lead generation companies which ultimately advertise an IVA/PTD service must be extremely careful to ensure their advertising is responsible and does not mislead.'

Professional Standards Update: June 2022
Read the June update from ICAEW Professional Standards.

Disciplinary update: June 2022
Since the last update, three tribunal orders have been published as well as nine consent orders issued by the Investigation Committee and two fixed penalties.

The Practice Assurance Committee: assuring sustained improvement
ICAEW’s Practice Assurance Committee considers serious or persistent failings identified during Practice Assurance visits. We talk to Louise Silverton, the committee’s lay chair, about the commonalities in regulation across sectors, and how having an inquiring mind and a commitment to process help her to do her job.

Upholding the highest standards
Read more about the oversight of ICAEW’s regulatory and conduct roles and 2021-2022 activities in the recently published ICAEW Regulatory and Conduct Report 2021-2022.

Legal services regulators commit to improving inclusivity
The legal sector acknowledges that it’s still harder to reach senior level as a lawyer if from a diverse background, and sets out new principles similar to ICAEW’s guidance. The Legal Services Board (LSB), eight legal services regulators (including ICAEW through its regulation of probate) and two disciplinary tribunals have all reaffirmed their commitment to taking action to ensure more inclusive workplaces for lawyers and that the profession better reflects the society and consumers it serves.

Sole practitioners: common challenges and avenues of support
There is no such thing as a typical sole practitioner in the accountancy profession. But sole practitioners face some common challenges, especially in the regulatory sphere. We look at how networking, peer support, keeping up with your CPD and planning for the future will help you meet these challenges and stay compliant.

May

CCAB Guidance updated and approved by HM Treasury
The Consultative Committee of Accountancy Bodies (CCAB) has published the latest version of its Anti-Money Laundering Guidance for the Accountancy Sector, together with the Tax Appendix and the Insolvency Appendix, following the Treasury’s approval of all three documents.

Professional Standards Update: May 2022
In this issue we highlight updated CCAB guidance, ask how your firm is using our newest training film, All Too Familiar, hear from the ICAEW Regulatory Board (IRB)’s new chair and give an update from our Quality Assurance team following the return to onsite reviews.  

We have now returned to on-site monitoring visits

Our quality assurance team has now returned to pre-pandemic ways of working, including on-site visits. For firms and practitioners that are in scope for an on-site visit, we find that they provide the best opportunity for high quality interaction between firms and our reviewers. They also enable the visit to be conducted in the most proportionate and effective manner for all those involved. 

In order for all visits to run as smoothly as possible, please ensure that key principals and staff at the firm are present during the visit and that all information requested is available. This may require some advanced planning if your firm is now adopting a hybrid working model. It is important that we receive timely responses to our queries whilst on-site, otherwise the process may become protracted and may result in our reviewer needing to return at a later date to complete the visit.

In the case of unforeseen circumstances in the days leading up to your visit, please tell us by emailing qadvisits@icaew.com and we can agree an appropriate solution. 

Serving on our regulatory and disciplinary committees
We currently have vacancies on the Chartered Accountants Compensation Scheme Committee. ICAEW, the Institute of Chartered Accountants in Scotland (ICAS) and the Institute of Chartered Accountants in Ireland (ICAI) operate a compensation scheme for members of the public who have incurred a financial loss as a result of investment advice given by a firm of chartered accountants which, at the time the advice was given, was authorised or licensed to give such advice by one of the three institutes. The Chartered Accountants Compensation Scheme Committee administers and manages the scheme. It also considers claims arising from investment business conducted by authorised/licensed firm under the investment business rulebooks.  

AML telephone monitoring reviews: a two-way process
Reviewers from ICAEW’s Quality Assurance Department (QAD) have introduced monitoring reviews focused solely on anti-money laundering (AML) compliance. We look at why your firm might receive a call, what you can do to prepare, and how to make the most of the advice on offer.

Leadership, listening and finding a voice
The ICAEW Regulatory Board (IRB) ensures ICAEW’s regulatory and disciplinary work promotes and maintains the highest professional standards. We talk to Philip Nicol-Gent, the board’s new chair, about what being a professional means to him, and how leadership, listening and staying ahead of the curve will ensure the public interest is always at the heart of the IRB’s work.

HMRC update May 2022: case queries mailbox service
Due to a significant increase in case queries, there are currently delays to response times. Read the latest advice from HMRC to find out how to help progress your query, including ensuring you have completed the contact form, and what not to do.

Amendments to Article 89 - Financial Sanctions and Insolvency Practitioners
The Insolvency Service is aware of some individuals who may be subject to financial sanctions who are seeking to use both solvent and insolvent liquidations to circumvent financial sanctions. Read this update from the Insolvency Service for information about financial sanctions. It also gives details of a free subscription service to identify designated persons, entities or bodies. Insolvency practitioners are encouraged to subscribe to the service.

April

FRC seeks to register auditors of public interest entities
Proposed changes to the registration of auditors of public interest entities will change the routing of AQR reports but will not have a substantive impact on outcomes.

Professional Standards Update: April 2022
Read the April update from ICAEW Professional Standards.

Regulating firms: a game-changer for insolvency regulation
The ICAEW Regulatory Board has welcomed proposals to widen the regulatory regime for insolvency to include firms as well as individual practitioners. But the board’s response to the government’s consultation on the future of insolvency regulation also argues against the introduction of a single government regulator.

April 2022: 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.

Accountancy AML Supervisors Group (AASG) Risk Outlook 
The AASG Risk Outlook has been updated.

Medium term (3 year) 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.  The deadline for responses is Monday 23 May 2022.

Disciplinary update: April 2022
Since the last disciplinary update two appeal orders have been published as well as five consent orders issued by the Investigation Committee and two fixed penalties.

AML - the essentials, issue 24
In this issue, we summarise the resources issued in response to UK sanctions against Russia, highlight the implications of the Economic Crime Act and look at the risks associated with virtual assets in the seventh instalment of AML: The Basics.

AMLbites: Sanctions
How sanctions work and apply to ICAEW firms.

AML webinar: How to verify your client
Our panel will discuss the stages of client verification and how these should link to your money laundering risk assessment.

March

DD requirements: Update to high risk third countries list – UAE now included
The amended list came into force on 29 March 2022. Enhanced due diligence is required for all business relationships and transactions with a person, or entity, established in a high risk third country. Read HMT’s advisory notice, which provides additional clarification.

Changes to ICAEW’s CPD Policy: give your view
ICAEW wishes to consult on changes it proposes to make to ICAEW’s CPD Policy. The consultation is open from 24 March to 18 May 2022

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.

Raise an AML concern
How to raise a concern about a potential breach of the Money Laundering Regulations 2017 by an ICAEW supervised firm.

Audit guidance in response to the Ukraine crisis
No one can fail to be appalled by the actions of the Russian Government and the awful situation for Ukraine and its people. Although insignificant in comparison, many ICAEW regulated audit firms will face some challenges and difficult decisions as a result.

Professional Standards Update: March 2022 
Read the March update from ICAEW Professional Standards. 

Investment business: keeping on the right side of compliance
Complying with the requirements of your firm’s DPB (Investment Business) licence needn’t be onerous if you follow some simple good practices. 

Audit monitoring: telling the story 
ICAEW’s audit monitoring report for 2020/21 shows most firms reached a good standard. But it also flags areas for improvement, highlights how root cause analysis can boost performance, and urges firms to tell an audit story.

An opportunity to contribute
The ICAEW Regulatory Board (IRB) is currently recruiting new members. We talk to existing board members about their background, why they decided to serve, the benefits and challenges, and the need for a blend of skills. 

Changes to UK sanctions in response to developments in Ukraine
Frequently asked questions about changes to UK sanctions against Russia, in response to the conflict in Ukraine.

CCAB publishes joint guidance on Russia sanctions
The Consultative Committee of Accountancy Bodies has issued joint guidance for the profession on the situation in Ukraine.

Disciplinary update: March 2022
The March disciplinary update is now available, and we recommend reading the update to familiarise yourself with the latest cases we are seeing.

Investment business: keeping on the right side of compliance
Complying with the DPB (Investment Business) licence requirements needn’t be onerous if you follow some simple good practices. We look at the common problems that come up during ICAEW quality assurance monitoring visits, and offer tips to make sure your firm doesn’t make the same mistakes.

ICAEW Disciplinary Framework consultation: have your say before the deadline
The ICAEW Regulatory Board’s consultation on proposed changes to the disciplinary framework closes later this month. The proposals aim to simplify it and make it more accessible to users.

February

Audit monitoring: telling the story
ICAEW’s audit monitoring report for 2020/21 shows most firms reached a good standard. But it also flags areas for improvement, highlights how root cause analysis can boost performance, and urges firms to tell an audit story.

Third country audit registration in EU
Firms seeking to secure the audit of an entity with an overseas listing that involves registration for the first time with a particular EU state need to allow the necessary timescales to get this through for their reporting period.

Professional Standards Update: February 2022
Read the February update from ICAEW Professional Standards.

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.

Please plan ahead: regulatory applications and firm structure changes
ICAEW is implementing a new records management system this spring. As the new system goes live, there may be some disruption to our usual processing times, particularly during March and April. If you or your firm is considering a new regulatory application or change (e.g., to the structure of your firm or to your own registration record), please contact regulatorysupport@icaew.com at the earliest opportunity. Please note, you must notify us of any changes to the structure of your firm within 10 business days of the change. Read more information about maintaining your firm’s record is.

An opportunity to contribute
The ICAEW Regulatory Board (IRB) is currently recruiting new members. We talk to existing board members about their background, why they decided to serve, the benefits and challenges, and the need for a blend of skills.

The IRB: building a board for the future
The ICAEW Regulatory Board (IRB) is at a critical point in its development. It recently announced the appointment of a new chair and is currently recruiting new members. We talk to serving board members and the chair of the independent Regulatory and Conduct Appointments Committee about what makes an effective board, why diversity – in all its forms – is so important, and what qualities prospective members could bring to the mix.

Is trust enough? AML and professional scepticism
ICAEW’s latest educational drama film, All Too Familiar, examines the role of professional scepticism in the fight against economic crime. Produced in collaboration with HMRC, the film looks at a real life scenario of how firms and individuals may inadvertently become ‘professional enablers’ for criminals involved in everything from financial fraud to modern slavery and terrorism.

COVID-support fraud: staying vigilant on the frontline
Fraudsters have been targeting COVID-19 business support schemes since their inception. And although the key programmes ended during 2021, the issue has not gone away. For accountancy firms now preparing year-end accounts, staying alert to COVID-related fraud is more important than ever.

Disciplinary update: February 2022
Since our last update, 3 tribunal findings and a settlement order have been published as well as 14 consent orders issued by the Investigation Committee.

January

AML monitoring
View ICAEW’s latest AML supervisory activity.

View from the firms
View the latest quality assurance monitoring results.

IRB appoints new Chair
The IRB has announced the appointment of its new Chair, Philip Nicol-Gent.

Changes to ICAEW’s disciplinary framework: give your view
The IRB wishes to consult on changes it proposes to make to ICAEW’s disciplinary framework. The consultation is open from 19 January 2022.

Professional Standards Update: January 2022
Read the January update from ICAEW Professional Standards.

Investment business licensing: expanding your services
Investment business covers a wide range of activities that accountancy firms might carry out as part of their broader client services. In the latest in our series on moving into new regulated areas, we look at what your firm needs to do to get a DPB (Investment Business) licence.

Upholding the right to appeal
In the latest in our series looking at the work of ICAEW’s regulatory and disciplinary committees, we talk to Angus Withington QC, chair of the Appeal Committee, about its role and responsibilities, and why a final right of appeal is so important. 

Disciplinary update: January 2022
Since the last disciplinary update, one appeal committee order has been published, as well as nine tribunal findings, eight consent orders (issued by the Investigation Committee) and six fixed penalties.