Accountant's £5,000 fine appeal rejected

An accountant who failed to pass on details of a former client to another accountancy firm has appealed his ICAEW fine of £3,450 and costs of £1,866.

Hong Kee NG, of Catteshall Lane, Godalming, Surrey, was previously found guilty of bringing discredit on himself and the profession and failing to comply with section 210 of the ICAEW’s code of ethics.

The April disciplinary hearing heard two complaints about Mr NG: one that...

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Comments
carnmores's picture

ICAEW completely OTT

carnmores | | Permalink

as usual

.

Whinger | | Permalink

Out of interest are these fines enforceable? Sure you can kicked out of institute, But would they take you to court for the fine? Would they win?

paddy55's picture

Ethical letter

paddy55 | | Permalink

Does the professional requirement to contact the previous accountant provide any benefit? Is it outmoded? The accountant cannot provide any information unless authorised by the previous client. He is entitled to charge and be paid upfront for providing these services. The client will in nearly all cases have been provided previously with these documents.

Tom 7000's picture

Fair play

Tom 7000 | | Permalink

If you dont provide the handover info then it makes life a lot harder for everyone. Where on earth will you get the CA pool from.

 

Also, you know the rules, why break them?  If you do, you get fined.

 

Its the unqualified ones who are not supervised that never reply that frustrate you.

 

 

FInes enforceable?

Cloudcounter | | Permalink

The ICAEW pages nearly every month refer to somebody ceasing to be a member after being disciplined and not paying.  The usual reason is non-payment.  There is always a statement to the effect that the institute will take all steps, including legal action, to recover money that it is owed.

As carnmores said, many fines are completely OTT, and the level of costs even where somebody has pleaded "guilty" are eye-watering.

The ones that astonish me are where some poor so and so has entered into an Individual Voluntary Arrangement the institute fines him a couple of thousand.  Talk about kicking somebody when he's down.  Still the money for the entertainment budget has to come from somewhere.

paddy55's picture

Ethical letter

paddy55 | | Permalink

Expanding on my previous post.

"Does the professional requirement to contact the previous accountant provide any benefit? Is it outmoded? The accountant cannot provide any information unless authorised by the previous client. He is entitled to charge and be paid upfront for providing these services. The client will in nearly all cases have been provided previously with these documents .""".. ....."".

I find it difficult to see how the accountant could be liable to provide copies of documents to an ex-client if a) the accountant had previously provided those documents to the client and b) he had now severed all connections with the previous client. If a stranger approaches you and offers to buy a document from you, you are under no obligation to supply it to him even if he is offering to pay for it.

Tom 7000's picture

Paddy 55 is that a serious comment?

Tom 7000 | | Permalink

You need to do this for two reasons

 

a) Stop the old accountant doing work. If you dont write to them, they may continue billing. I have seen it done and the client gets two bills for teh same bit of work

b) When do you ever send the client the CA comps? ( on the tiny client level) or when did the medium sized client even know what an accrual was let alone work them out, or if its big try not writng an audit clearance letter and see where that gets you.

 

Chaps the system works lets not break it huh?

 

And no the institute fines are fair. If you are clever enough to get in, you are clever enough to follow the rules and not get fined, so if you break them you deserve it.

 

If you think you are heading towards a voluntary arrangement try CABA

 

 

paddy55's picture

Ethical letter

paddy55 | | Permalink

Hi Tom,

I agree that if the client has not been supplied with all of the records, then there is an obligation to supply him wiith the outstanding records. But it is a different matter if the client has lost some of his records and wants copies.

For example, if the client loses his software disk, the software company is under no automatic obligation to supply him with another copy.