Who will be the principals?

• You
• Your spouse, family, friend (chartered accountants and non-chartered accountants)
• Member(s) of other professional bodies
• Others

The definition of ‘principals’ is taken from the ICAEW statement on members engaging in public practice. A member who is regarded as being in practice will require a practising certificate. Any non-member principals in regulated firms (audit, DPB, insolvency or probate) or a firm using the description ‘Chartered Accountants’ must become an ICAEW affiliate.

In accordance with regulation 26 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, any new individual who wants to be a beneficial owner, officer or manager (BOOM) in one of our supervised firms must be approved by ICAEW. ICAEW can only approve a BOOM if that individual has no relevant unspent criminal convictions. Once we are notified about your practice we will write to you requesting an original copy of the individual criminal record check certificate. The basic level check is required.

What will the name of the practice be?

A practice name must comply with legal requirements and be consistent with the dignity of the profession. It should not be misleading or imply superiority. Further guidance is available in the Practice names and letterheads helpsheet.

Advisory Services has produced letterheads checklist and templates to assist you in designing your own practice letterhead. They also offer a free and confidential approval service to review the practice name and letterhead and advise whether it satisfies ICAEW and other requirements. If you would like to use this service please email your draft letterhead (and email template where applicable) to firms.admin@icaew.com.

Will your practice be an ICAEW member firm?

Does the structure of your accountancy practice meet the ICAEW member firm definition set out in the Principal Bye-laws. It is important to understand whether your practice meets this definition as it affects whether ICAEW will be your anti-money laundering supervisor (see Anti-money laundering supervision).

Will your practice be entitled to use the description ‘Chartered Accountants’?

The Use of Description Chartered Accountants Regulations set out when a firm may describe itself as ‘Chartered Accountants’. Please note the ‘use of description’ member firm definition is different in the Principal Bye-laws for an ICAEW member firm.

Will your practice be entitled to use the ICAEW logo?

ICAEW has developed logos for use by ICAEW members, ICAEW member firms, ICAEW licensed insolvency practitioners and ICAEW probate accredited firms.

Member logo

Any ICAEW member who is entitled to use the ACA or FCA designation may use the member logo to promote their own professional services. This includes members in business and practice. Sole practitioners may use either the member or the member firm logo.

Member firm logo

Only practising member firms, as defined in the Use of description regulations paragraph 5, can use the member firm logo to promote their firm.

ICAEW licensed insolvency practitioners logos

All ICAEW licensed insolvency practitioners may use the ICAEW licensed insolvency practitioner (UK) logo for promotional purposes.

Firms where all the insolvency practitioners are licensed by ICAEW may use the ICAEW licensed insolvency practitioners (UK) logo to promote their firm.

The logo doesn’t replace the legend. All recognised professional bodies under the Insolvency Act have agreed that insolvency practitioners should tell clients, and others with whom they deal, the name of their authorising body at an early stage.

ICAEW probate accredited logo

ICAEW probate accredited firms may use the ICAEW probate accredited firm logo (UK) for promotional purposes. The logo does not replace the legend and can be used together on firm letterhead.

Practice assurance standards and regulations

You must comply with the practice assurance standards and regulations. Further guidance is available from the Practice Assurance standards, guidance and regulations webpage.

Clients' money

If you intend to hold clients’ money, you will need to comply with the Clients’ money regulations. Further guidance is available from the Clients’ money regulations webpage.

Sole practitioners who hold clients’ money are required by regulation 31 to make appropriate alternate arrangements and notify ICAEW of these arrangements.

Anti-money laundering

You must comply with anti-money laundering regulations. This includes the need to be supervised (see Anti-money laundering supervision webpage), for beneficial owners, officers or managers to be approved by ICAEW (see Criminal record checks webpage) as well as wider obligations (see Anti-money laundering webpage and the CCAB Anti-money laundering guidance for the accountancy sector).

Data protection

You will normally need to register with the ICO and pay the data protection fee. You will also need to comply with data protection legislation. Further guidance is available in ICAEW’s guide to GDPR and in the ICO’s Guide to Data Protection.

Authorised or licensed work

If you intend to carry out any authorised or licensed work, you will need to comply with the relevant regulations and should assess the implications of these for your practice.

• Audit (see Working in the regulated area of audit webpage).
• Investment business (see DPB (Investment Business) licence and FCA authorisation).
• Insolvency (see Insolvency webpage).
• Legal services including probate (see Probate services webpage).
• Licenced practice (including acting as an ATOL reporting accountant, see Licensed practice scheme webpage).

Employing staff

Will you be employing staff? If so, you need to consider the human resource implications of being an employer (including PAYE/NI, employment law and employer’s liability insurance).

Subcontracting

Will you be acting as a subcontractor for another practice or making use of a subcontractor to provide your services? If so, guidance is available in the helpsheet Subcontracting accountancy services.

IT systems

Have you considered your IT systems? You may wish to consult our guide on 5 things to think about when considering your IT options and the ICO’s document; A practical guide to IT security.

Obtaining clients

Have you considered how you will obtain new clients for your practice?

Our Marketing helpsheet highlights key ethical and regulatory considerations when promoting your practice and our Marketing your practice webpage offers a wide range of suggestions.

If you are looking to purchase a block of fees from an existing practice our helpsheet Buying and selling fees sets out additional considerations.