Press Round-Up: Regulatory and Professional Discipline - August 2022 - September 2022

Legal

Solicitors Regulation Authority (SRA)

SRA to establish an SRA-run Indemnity Scheme for future consumer protection for post six-year negligence

Following extensive consultation, research, and expert advice, the SRA has decided that existing Solicitors Indemnity arrangements, which are currently operated by Solicitors Indemnity Fund Limited (SIFL) will be replaced by the SRA’s own indemnity arrangements from September 2023.

The SRA-run indemnity arrangement will maintain consumer protection for post six-year as a regulatory arrangement. It will provide the same level of cover as SIF.

New guidance on SRA’s approach to sexual misconduct cases

The SRA have produced new guidance on sexual misconduct within law firms. The new guidance can be found here.

The new guidance seeks to clarify the following:

• The SRA’s approach to allegations of sexual misconduct including what behaviours are acceptable, and when such behaviour may be considered to become a regulatory matter.
• The boundary between an individual’s behaviour in their private and professional life, and why such a distinction is important.
• The SRA’s expectations relating to firms, and their workplace culture including creating a workplace that does not tolerate sexual harassment.
• Firm’s obligations in relation to the investigation of allegations of sexual misconduct internally and reporting those behaviours to the SRA. This reaffirms the recently published guidance.

Under the new guidance, when considering the boundary between an individual’s behaviour in their private and professional life, the following must be considered:

1. Proximity to practice
2. Seriousness of the conduct
3. Criminality of conduct
4. Consent
5. Vulnerability
6. Intoxication

 

Health

Health & Care Professions Council (HCPC)

HCPC updates standards of proficiency

The HCPC standards of proficiency describe what professionals must know, understand and be able to do in order to join and remain on the Register. From 1 September 2023, all registrants will have to meet the revised standards of proficiency. Updates include:

• An elevation of the importance of registrants’ mental health. The previous standards were less about registrant health and more focused on fitness to practise; registrants are now required to develop and adopt clear strategies for physical and mental self-care.
• A new standard about promoting public health and preventing ill-health (involving providing advice, referrals or other interventions which may not be directly connected to the reason their patient sought care.)
• Wording changes to move registrants away from a passive understanding of the standards towards active implementation of them, to clarify the expectations on registrants, and reflect the importance of registrants being autonomous and caring.
• Changes to put patients and service users first, e.g. requiring registrants to take a wider range of circumstances into account when determining consent, reflecting evolving definitions of patient consent.
• An expansion of the role of equality, diversity and inclusion (EDI).

The HCPC are running webinars to look in-depth at the updated standards. Details can be found here.

Extension of the COVID-19 Temporary Register

The HCPC temporary register, was established in March 2020 to boost the UK health and care workforce during the pandemic. The Temporary Register, which was due to close on 30 September 2022, will remain open for a further 2 years.

Those on the COVID-19 Temporary Register will be able to practise using their professional title after 30 September 2022, and the HCPC Standards will continue to apply to them. The HCPC will be reviewing their approach to regulating those on the Temporary Register.

 

General Medical Council (GMC)

Next step on road to regulation as new education standards for future PAs and AAs published

The GMC have published new standards outlining what can be expected from course providers and students learning to become Physician Associates (PAs) and Anaesthesia Associates (AAs), as the GMC continues preparations as the regulator for both professions. Regulation is expected to begin no earlier than the second half of 2024.

The new standards include:

• A core set of expectations course providers must ensure students can satisfy by the time they graduate and work - 'generic and shared learning outcomes'.
• Basis which course providers can use to develop their programmes of learning and assessing.

 

Nursing and Midwifery Council (NMC)

NMC to consider important English language proposals

Following the English language consultation, the NMC are proposing the following:

• Standardisation of the minimum scores they accept when combining test scores, and extend the period for combining test scores by 12 months.
• Allow employers to provide supporting evidence of English language proficiency. Such evidence will be accepted, where the application has:
  • trained in English in a country where English is not spoken by the majority, or
  • narrowly missed the pass mark for the English language test.

 

General Pharmaceutical Council (GPhC)

GPhC Council agrees new guidance for entry to independent prescribing courses

From 1 October 2022, pharmacists will no longer be required to have two years of practice and relevant experience in a specific clinical or therapeutic area to enrol in an independent prescribing course.

Instead, applicants are now required to have relevant experience in a pharmacy setting and be able to recognise, understand and articulate the skills which are required by a prescriber. The final version of the guidance will be available in the coming weeks.

 

Finance

Financial Reporting Council (FRC)               

FRC publishes regulations for PIE Auditor Register

Following the Government’s response to the consultation on restoring trust in audit and corporate governance, the FRC has published regulations for the Public Interest Entities (PIE) Auditor Register. This stemmed from the Kingman Review in 2018, which found that the FRC had insufficient powers to address systemic issues at firms, relying on the registration powers of the Recognised Supervisory Bodies.

From 5 December 2022, all audit firms and responsible individuals who undertake statutory audit work for PIEs will need to be registered by the FRC.

Audit firms currently auditing PIEs will need to apply and be approved to be included on the PIE Audit Register to prevent any disruption to their work. There will be a transition period from 5 September to 4 December 2022 for existing audit firms of PIEs to submit transitional applications.

Revisions to ISA (UK) 600 Special Considerations — Audits of group financial statements (Revised September 2022)

The FRC’s revisions to the ISA (UK) Special Considerations – Audits of Group Financial Statements, build upon the recently revised international version of the standard with an enhanced focus on the risk of material misstatement at the financial statement level, and the need for robust communication between group and component auditors. Full revisions can be found here.  

Financial Conduct Authority (FCA)

FCA confirms new rules to improve oversight of Appointed Representatives (ARs)

ARs are not authorised by the FCA – they can offer certain financial services or products under the responsibility of authorised firms (principals). Principal firms are responsible for ensuring their ARs comply with FCA rules. Many principals do not adequately oversee the activities of their ARs.

These rules seek to help prevent consumers being mis-sold or mis-led by ARs and prevent misconduct by ARs undermining markets operating fairly and safely. Under the new rules, principal firms will need to:

• Apply enhanced oversight of their ARs, including ensuring they have adequate systems, controls and resources.
• Assess and monitor the risk that their ARs pose to consumers and markets, providing similar oversight as they would to their own business.
• Review information on their ARs’ activities, business and senior management annually, and be clear on the circumstances when they should terminate an AR relationship.
• Notify the FCA of future AR appointments 30 calendar days before it takes effect.
• Provide complaints and revenue information for each AR to the FCA on an annual basis.

As part of a three-year strategy to improve outcomes for consumers and markets, the FCA is also undertaking targeted supervision of principal firms across the whole financial services sector, using improved data and analytical tools to focus its work. It is also increasing scrutiny on firms applying for authorisation and as they appoint ARs.