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The Financial Reporting Council (FRC), recently published a consultation document setting out the changes it proposes to its disciplinary Schemes.   

The FRC considers that changes to the Schemes are desirable to enhance their independence and to promote their effective and efficient operation.

The proposals include:

• The introduction of a procedure to enable cases to be concluded by agreement, without the need for a full tribunal hearing although with published conclusions;
• The ability to conduct enquiries before initiating an investigation;
• Refinements to the criteria for the commencement of an investigation;
• A power to impose interim orders;
• Amendments to reduce the potential for delay; and
• Changes to improve the procedure for making future changes to the Schemes.

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
2. The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes for these professions. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute and Faculty of Actuaries (formerly the Institute of Actuaries) and the Faculty of Actuaries (prior to its merger with the Institute of Faculty of Actuaries).
3. The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body.   The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. An investigation does not always mean that an allegation has been made or that there is evidence of misconduct on the part of the Member or Member Firm involved.
4. Disciplinary complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by one of the Schemes and withdrawal of practising certificates or licences.
5. All Press enquiries should be directed to: Oliver Parry, Acting Head of Communications, on telephone: 020 7492 2397 or email: o.parry@frc.org.uk.

Related links

Disciplinary schemes proposed changes: a consultation paper (June 2012)