2016 Rulebook (effective 1 August 2016) PDF
Preview 2016 Rulebook (effective 1 August 2016)
Rulebook 2016 Rulebook £20.00 ACCA The Adelphi 1-11 John Adam Street London WC2N 6AU Tel: +44 (0)141 582 2000 Fax: +44 (0)141 582 2222 E-mail: [email protected] Internet: www.accaglobal.com © The Association of Chartered Certified Accountants (ACCA) 2016 No part of this publication may be reproduced, in any format, without the prior written permission of ACCA. ISBN 978-1-85908-493-9 January 2016 Typeset & Printed in the UK by Innerworkings Europe Ltd, Solihull B90 4GT i ii Contents Rulebook Contents Page Section 1 Royal Charter and bye-laws 1.1 Royal Charter .......................................................................................................................3 1.2 Bye-laws Definitions .........................................................................................................................11 Members ...........................................................................................................................12 Students ...........................................................................................................................13 Practising certificates .......................................................................................................14 Insolvency licences ...........................................................................................................15 Investment business .........................................................................................................15 General ...........................................................................................................................17 Liability to disciplinary action ..........................................................................................17 Disciplinary process .........................................................................................................19 Obligation to co-operate and inform .............................................................................20 Application and interpretation ........................................................................................20 Appointment of regulatory board ..................................................................................21 Elections and appointments to Council .........................................................................22 The Council .......................................................................................................................27 Committees ......................................................................................................................27 Local branches and committees .....................................................................................27 Proceedings of the Council .............................................................................................28 Staff ...........................................................................................................................28 Accounts and audit ..........................................................................................................28 Indemnity ..........................................................................................................................29 Investments .......................................................................................................................29 General meetings .............................................................................................................30 Proceedings at general meetings ...................................................................................31 Common Seal ...................................................................................................................34 Notices ...........................................................................................................................34 Annex 1 – The Chartered Certified Accountants’ Fees Regulations 2015 ...................35 Annex 2 – The Chartered Certified Accountants’ Electronic Communications Regulations 2002 ............................................................................................................36 Annex 3 – The Chartered Certified Accountants’ Online Provision of Annual Reports and Notices Regulations 2006 ........................................................................38 Section 2 Regulations Introduction ......................................................................................................................42 iii Contents Page 2.1 The Chartered Certified Accountants’ Membership Regulations 2014 Citation, commencement and application ...................................................................43 Interpretation ...................................................................................................................43 Eligibility for membership ..............................................................................................46 Members’ obligations and rights ...................................................................................49 Eligibility for affiliate status ............................................................................................53 Affiliates’ obligations and rights ....................................................................................53 Eligibility for registered student status .........................................................................54 Registered students’ obligations and rights .................................................................55 Application procedure to become a member or registered student .........................58 Resignation of member, affiliate or registered student status ....................................58 Removal of member, affiliate or registered student for non-payment .......................59 Removal of member for non-compliance with CPD regulations ................................59 Bankruptcy .......................................................................................................................60 Readmission ....................................................................................................................61 Service of notices and documents .................................................................................61 Attendance ......................................................................................................................63 Hearings . .........................................................................................................................63 Waiver ...............................................................................................................................63 Appendix 1 – ACCA Qualification examination structure ...........................................64 Appendix 2 – Practical experience requirement (PER) .................................................65 Appendix 3 – Foundations in Accountancy Suite of Qualifications examination structure ............................................................................................67 Appendix 4 – Required experience to obtain Certified Accounting Technician status ....................................................................................................68 2.2 The Chartered Certified Accountants’ Global Practising Regulations 2003 Citation, commencement and application ...................................................................70 Interpretation ...................................................................................................................70 Restrictions on carrying on public practice ...................................................................72 Meaning of public practice ............................................................................................72 The practising certificate ................................................................................................73 Eligibility for a practising certificate ..............................................................................73 Qualifications ...................................................................................................................74 Fit and proper persons ...................................................................................................75 Professional indemnity insurance ..................................................................................76 Continuing professional development ..........................................................................78 Continuity of practice .....................................................................................................79 Notification ......................................................................................................................80 Conduct ...........................................................................................................................82 Monitoring, quality assurance and compliance ............................................................82 Disclosure of information ...............................................................................................82 Appendix 1 – Competences of practising certificate holders .....................................83 iv Contents Page Annexes: Annex 1 – Additional Practising Regulations for the United Kingdom, Jersey, Guernsey and Dependencies and the Isle of Man ..........................................85 Annex 2 – Additional Practising Regulations for the Republic of Ireland ................104 Annex 3 – Additional Practising Regulations for Cyprus ...........................................118 Annex 4 – Additional Practising Regulations for Zimbabwe .....................................123 Annex 5 – Additional Practising Regulations for Australia ........................................128 Annex 6 – Additional Practising Regulations for the Republic of South Africa .......131 2.3 The Chartered Certified Accountants’ Designated Professional Body Regulations 2001 Citation, commencement and application .................................................................133 Interpretation .................................................................................................................134 Eligibility to carry on regulated activities ....................................................................144 Scope .............................................................................................................................147 Independence ...............................................................................................................152 Relations with clients ....................................................................................................152 Credit-related regulated activities ...............................................................................156 Compliance procedures ...............................................................................................156 Enforcement ..................................................................................................................157 Waivers and service ........................................................................................................159 Liability ...........................................................................................................................159 2.4 The Chartered Certified Accountants’ Irish Investment Business Regulations 2013 Citation, commencement and application .................................................................160 Interpretation .................................................................................................................161 Eligibility for an investment business certificate (Ireland) ..........................................164 Scope .............................................................................................................................167 Consumer Protection ....................................................................................................170 Independence ...............................................................................................................171 Relations with clients ....................................................................................................171 Effecting transactions for clients ..................................................................................172 Advising clients .............................................................................................................173 Additional requirements in certain circumstances .....................................................174 Compliance procedures ...............................................................................................176 Enforcement ..................................................................................................................177 Waivers and service .......................................................................................................179 Liability ...........................................................................................................................180 Appendix 1 – Receipt in compliance with section 30 of the Act ...............................180 Appendix 2 – Essential details of a transaction ..........................................................181 2.5 The Chartered Certified Accountants’ Regulatory Board and Committee Regulations 2014 Citation, commencement and application ....................................................................182 Interpretation ...................................................................................................................182 v Contents Page Appointment and establishment of Regulatory Board, Appointments Board, Qualifications Board and Standards Board and appointment of members ...........184 Establishment of committees, and appointment of panel of committee members, chairmen, assessors, regulatory assessors and legal advisers ..................................186 Constitution of Disciplinary, Admissions and Licensing, Appeal, Health, Consent Orders and Interim Orders Committees and eligibility .............................187 Powers and responsibilities of Disciplinary, Admissions and Licensing, Appeal, Health, Consent Orders and Interim Orders Committees ........................188 General ..........................................................................................................................188 Appendix 1 ......................................................................................................................190 2.6 The Chartered Certified Accountants’ Authorisation Regulations 2014 Citation, commencement and application ...................................................................193 Interpretation ...................................................................................................................193 Applications and re-applications for certificates etc. ...................................................195 Validity and renewal ........................................................................................................199 Withdrawal of, suspension of, or imposition of conditions on certificates: general .....199 Withdrawal of, suspension of, or imposition of conditions on certificates: hearings ...200 Imposition of conditions on certificates by a regulatory assessor ..............................206 Correction of errors .........................................................................................................208 Effective date and appeals .............................................................................................209 Costs ..........................................................................................................................209 Service of notices and documents .................................................................................210 Attendance ......................................................................................................................211 Hearings ...........................................................................................................................211 Applications for waivers etc. ..........................................................................................211 Cross-applicability of these regulations to other regulations dealing with applications for certificates, approvals, membership etc. .......................................211 Waiver ..............................................................................................................................211 2.7 The Chartered Certified Accountants’ Complaints and Disciplinary Regulations 2014 Citation, commencement and application ...................................................................212 Interpretation ...................................................................................................................212 Rights and obligations of the relevant person in relation to complaints, investigations and proceedings under these regulations ........................................215 Consideration of complaint ............................................................................................215 Assessor: review of decision that a case should be closed or that allegations should rest on the relevant person’s file ....................................................................218 Assessor: decisions upon a report of disciplinary allegations .....................................219 Rest on file ........................................................................................................................220 Consent orders .................................................................................................................221 Referral to Disciplinary Committee and nomination of case presenter ......................223 Disciplinary Committee: notices, case management and ancillary provisions ...........224 Disciplinary Committee: publicity and open hearings ..................................................229 Disciplinary Committee: procedure and evidence at hearings ....................................230 vi Contents Page Orders and sanction ........................................................................................................231 Consequential orders ......................................................................................................234 Costs .................................................................................................................................234 Compensation ..................................................................................................................234 Notice ................................................................................................................................234 Appeal ...............................................................................................................................234 Correction of errors ..........................................................................................................235 Effective date ....................................................................................................................235 Ill health .............................................................................................................................235 Service of notices and documents..................................................................................236 Payment ............................................................................................................................237 Attendance .......................................................................................................................237 Hearings ............................................................................................................................237 Public interest cases .........................................................................................................237 Waiver ...............................................................................................................................238 Extension of time .............................................................................................................238 2.8 The Chartered Certified Accountants’ Appeal Regulations 2014 Citation, commencement and application ..................................................................239 Interpretation ..................................................................................................................239 Appeal .............................................................................................................................241 Applying for permission to appeal ...............................................................................241 Form of application notice and grounds of appeal ....................................................241 Permission to appeal .....................................................................................................243 The appeal ......................................................................................................................246 Preparation for the appeal hearing ..............................................................................246 Notice, representation and adjournments ...................................................................247 The hearing .....................................................................................................................248 Orders of Appeal Committee .......................................................................................249 Costs ...............................................................................................................................250 Effect on costs of withdrawal of appeal .......................................................................251 Notice ...............................................................................................................................251 Correction of errors ........................................................................................................251 Effective date ..................................................................................................................252 Publicity ...........................................................................................................................252 Open hearings ................................................................................................................253 Service of notices and documents ................................................................................253 Payment ..........................................................................................................................255 Attendance .....................................................................................................................255 Hearings ..........................................................................................................................255 Public interest cases ........................................................................................................255 Transitional provisions ....................................................................................................256 General ............................................................................................................................256 Waiver ..............................................................................................................................256 vii Contents Page 2.9 The Chartered Certified Accountants’ Interim Orders Regulations 2014 Citation, commencement and application ..................................................................257 Interpretation ..................................................................................................................257 Interim orders .................................................................................................................258 Basis of application ........................................................................................................259 Notice of hearings ..........................................................................................................259 Publicity and open hearings ...........................................................................................259 Procedure at hearings ....................................................................................................260 Orders of the Interim Orders Committee ....................................................................261 Review ..............................................................................................................................261 Costs ................................................................................................................................262 Transitional provisions ....................................................................................................262 Correction of errors ........................................................................................................262 2.10 The Chartered Certified Accountants’ Health Regulations 2014 Citation, commencement and application ..................................................................263 Interpretation ..................................................................................................................263 Applicability .....................................................................................................................264 Ill health ............................................................................................................................264 Health hearing: procedure and evidence ....................................................................265 Health hearing: determinations .....................................................................................266 Rest on file .......................................................................................................................268 Notice ..............................................................................................................................268 Reviews ............................................................................................................................268 Publicity ...........................................................................................................................268 Right of appeal ................................................................................................................269 Costs ................................................................................................................................269 Correction of errors .........................................................................................................269 Section 3 Code of Ethics and Conduct Preface to the ACCA Code of Ethics and Conduct ....................................................273 Scope and authority of the Code .................................................................................273 How to use the Code .....................................................................................................273 To whom does the Code apply? ...................................................................................274 Non-compliance with the Code ....................................................................................274 Part A: General Application of the Code 100 Introduction and fundamental principles .....................................................276 Fundamental principles .................................................................................................276 Conceptual framework approach .................................................................................277 Threats and safeguards .................................................................................................278 Conflicts of interest .........................................................................................................279 Ethical conflict resolution ...............................................................................................279 viii Contents Page 110 Integrity ....................................................................................................................281 120 Objectivity ...............................................................................................................282 130 Professional competence and due care ....................................................283 140 Confidentiality .......................................................................................................284 150 Professional behavior ........................................................................................286 Part B: Professional Accountants in Public Practice 200 Introduction ............................................................................................................288 Threats and safeguards ...............................................................................................288 210 Professional appointment ................................................................................293 Client acceptance .........................................................................................................293 Engagement acceptance .............................................................................................293 Changes in a professional appointment ....................................................................294 Matters to be communicated to proposed clients ....................................................297 Matters to be communicated to proposed accountants ..........................................297 Unpaid fees of previous accountant ...........................................................................298 Transfer of books and papers ......................................................................................298 Transfer of information .................................................................................................298 Changes in audit appointment ...................................................................................298 Casual vacancy in auditorship .....................................................................................299 220 Conflicts of interest .............................................................................................300 Conflicts between professional accountants’ and clients’ interests ........................304 Commission and other financial gains ........................................................................305 Agency work .................................................................................................................305 Conflicts between the interests of different clients ...................................................306 Managing conflicts between clients’ interests ...........................................................306 Conflicts between the interests of professional accountants and firms ..................307 Disengagement ............................................................................................................307 230 Second opinions ....................................................................................................308 240 Fees and other types of remuneration ......................................................309 Basis of fees ..................................................................................................................309 Referral fees and commission .....................................................................................310 Commission on indemnity terms ................................................................................311 Insolvency work in the UK ............................................................................................312 Management buy-out and raising venture capital ....................................................312 Fee disputes .................................................................................................................312 Investment business in the UK and Ireland ................................................................313 Advertisements .............................................................................................................313 ix
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