Professional accountancy bodies' disciplinary processes: FAQs

 

These frequently asked questions aim to answer some of the common queries asked by members of accountancy bodies when they are faced with a disciplinary investigation by the following regulators: 

 

We have prepared separate responses to frequently asked questions in relation to the Financial Reporting Council's (FRC) disciplinary processes regarding accountants and the FRC's audit enforcement procedure. 

 

 

Anyone can make a complaint to a relevant professional body. However, the nature of the complaint must be something that the particular professional body is able to consider.

Professional bodies can instigate a complaint of their own volition if information comes to their attention, for example through the press or from another regulator. 

Accountancy bodies investigate a wide range of complaints, ranging from breaches of regulations to lack of competence.

Complaints are not only confined to professional accountancy services, but can extend to a member’s conduct in his/her personal life. For example, the ICAEW may conduct an investigation into an accountant’s alleged sexual misconduct involving colleagues or other individuals outside the workplace, or if they have inappropriately used social media. Professional bodies want to make sure that a member’s conduct does not bring the profession into disrepute.

Professional bodies impose duties on their members to report breaches. Self-reporting is encouraged and is often seen favourably by the professional bodies. 

For example:

• There is an obligation on ACCA members to promptly inform the ACCA of any facts or matters which indicate that a member or member firm may be liable to disciplinary action, including facts or matters relating to the member themselves.
• ICAEW members and member firms have a duty to report to the ICAEW Conduct Department any event which may indicate that (a) they themselves are liable to disciplinary action, and/or (b) another member or member firm may be liable to disciplinary action.

The length of a disciplinary investigation may vary depending on a number of factors. This includes the nature of the allegations and complexity of the case, how strongly contested the allegations are, and which professional body is involved.

In 2024, the average time taken for the ACCA to deal with a complaint in the Assessment and Investigations Department was 7.6 months, against a target of 6 months.

The ICAEW’s position is that its investigations can take anything between three months for a straightforward case to be resolved, to a year or more for complex cases.

Disciplinary investigations can, unfortunately, take some time to conclude. Some investigation may even extend to several years, particularly if the complaint proceeds to a full disciplinary committee hearing.

You will normally be advised that a complaint has been made about you, and you will be provided with the contact details of the Case Manager responsible for investigating the complaint. You should also be provided with a copy of the complaint.

The Case Manager is likely to ask you to respond to some questions and/or to provide documents. You will normally be given a deadline to respond.  Once the Case Manager has considered your response, they may ask you further questions, and/or again to provide further documentation. This process will continue until the Case Manager has all of the information they need to make an assessment on whether the matter should proceed to the next step of the disciplinary process.  Depending on the nature of the allegation, this process can last for anything from a few months to several years.

Most regulatory bodies can impose interim orders on their members to suspend them from working for a prescribed period of time.

These are temporary measures put in place during the investigation process if there are concerns about a risk of harm to the public should the member continue to practise.

Most disciplinary schemes require you to cooperate with the investigation and to provide any documents requested. Failure to cooperate can result in the regulator bringing a further allegation against you for not cooperating. However, there may be some exceptions in relation to privileged, confidential and/or self-incriminating documents, which should be evaluated on a case-by-case basis.
 

Typically, a decision is made whether to dismiss the complaint altogether, or to refer the complaint to a separate, independent individual or body for the matter to be considered.  In the case of the ICAEW, the referral is made to the Conduct Committee. In the case of the ACCA, the complaint is considered by an Independent Assessor. For example, in 2024, 520 complaints out of 856 complaints were closed by ACCA Staff before referral to the Independent Assessor or a Committee.

If the matter is to be considered by the Conduct Committee or an Independent Assessor, the Case Manager will normally prepare a report. The report will set out the background to the matter, and will append the documentation obtained during the course of the investigation.  You will have an opportunity to review the report and provide written representations before it is considered by the independent committee or assessor.

Committees normally meet in private and consider the complaint and your representations on the papers. You will therefore not have an opportunity to attend the committee meeting in person.

The outcomes available at the close of the investigation stage differ between regulators.  However, at the investigation stage, the independent committee/ assessor can normally:

• dismiss the complaint;
• order further investigations to be carried out;
• order that the allegations should rest on the member’s file;
• offer a sanction; or 
• refer the complaint for a full hearing.

The committee often has the power to make a costs award against you, therefore you may be asked to contribute to the costs of the regulator’s investigation. 

The sanctions available to committees at the investigation stage are normally less serious than those that can be imposed at a full disciplinary hearing. Some of the sanctions which can be offered include a reprimand, severe reprimand and a fine. Sanctions may also vary depending on your membership status, such as whether you are a member, member firm, associated member, or student member.

The above list of sanctions is indicative only. If a complaint is made against you, it is key to obtain professional advice before the investigation process is completed. Often cases can be dealt with more favourably at the end of the investigation stage, with a lesser sanction, if a comprehensive response is prepared, taking into account any legal arguments which can be advanced.

If you do not wish to accept the resolution or sanction offered by the independent committee or assessor, then the matter will normally proceed to a full disciplinary hearing.

If you accept a sanction offered by the independent committee or assessor and make admissions to the allegation(s), the decision setting out the allegation(s) and sanction will normally be published. Generally, exceptional circumstances are required if publication is to be avoided.  If the complaint is dismissed by the committee, the decision may not be published.
 

Members will be notified of the date, time and location of the hearing. Below are the relevant notice periods for the professional bodies:

• ICAS, AAT and ACCA disciplinary hearing: 28 days before
• CIMA hearing: 35 days before
• CIPFA hearing: 42 days before
• ICAEW disciplinary hearing: The date of the final hearing is provided at the conclusion of the Case Management Hearing. The final hearing will be at least 30 days after the Case Management Hearing, unless there is agreement to an earlier hearing.

You will generally be provided with a copy of the complaint against you and the documents the regulator intends to rely upon at the hearing.

You are not required to attend the hearing. However, a decision can be made in your absence.
 

You can rely on witness statements, documents or other evidence at the hearing.  As it is the regulator’s role to prove the charge against you, they are unlikely to present evidence which is in support of your defence.  It is therefore important that you submit any documents or other evidence that supports your case.

You can ask witnesses to attend to give evidence on your behalf.   You can also give oral evidence at the hearing, although you are not required to do so. If you or any witnesses do give oral evidence, then you may be questioned by the regulator’s representative and the panel.

If you intend to rely on documents or witnesses at the hearing, you are normally required to give sufficient notice of this to the regulator in advance of the hearing.

Hearings are generally open to the public. This is unless the tribunal considers that there are special reasons why the matter should be heard in private. This may be where the matter concerns sensitive or personal matters, such as a member’s health.
 

The panel will normally be composed of a mix of accountants and lay people.  The panel will usually have a legal advisor to advise it on matters of law and procedure.
 

The civil standard of proof applies. This means that the disciplinary committee considers whether, on the balance of probabilities, the allegation is proved.
 

The sanctions available will depend upon your regulator. However, the following are normally available to a disciplinary committee:

• reprimand;
• severe reprimand;
• fine;
• conditions imposed on membership;
• suspension or withdrawal of a practising certificate;
• suspension from membership;
• exclusion from membership.

The disciplinary committee may also have the power to make a costs award against you. If such an award is made, you will be required to contribute to the regulator’s costs involved in bringing the investigation and prosecution against you. Some disciplinary schemes allow you to make an application for your costs to be paid by the regulator. However, such applications are rarely successful in practice.

Yes, all of the professional bodies provide their members with the opportunity to appeal decisions. However, there is often certain criteria that needs to be satisfied before an appeal will be allowed.

The relevant time limits for appeals are set out below: 

• AAT: 14 days from notification of the decision.
• ACCA, CIMA and CIPFA: 21 days from notification of the decision.
• ICAS and ICAEW: 28 days from notification of the decision.

Yes, decisions are typically published on the professional body’s website as soon as practicable after the hearing. This is usually after the time period for appeal has expired. How long the decisions remain published for depends on the professional body. For example, the length of time a disciplinary decision is published on an ICAEW’s database depends on the category of the matter and the sanction ultimately imposed.