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Dropping ICAEW from firm title

Dropping ICAEW from firm title

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I'm asking this on behalf of a friend - yes really !

He is a partner in a firm of Chartered Accountants. He is not ICAEW qualified but 50% (2) of the partners are so the firm can be badged as CAs. However, one of the CA partners is leaving so they no longer meet the CA badging requirements so will drop the title. I presume this means the firm are no longer regulated by the Institute and so will need to apply to HMRC for money laundering registration. This is not a big issue.

The question is though, if they are no longer Joe Bloggs & Co Chartered Accountants but just plain vanilla Joe Bloggs & Co do they need to make any changes as regards HMRC client authorisations (64-8s), Companies House authorisations and account, letters of engagement etc ? My feeling was no as the legal structure of the firm has not changed but I just have this niggling doubt that life is never so simple. Has anyone any experience of this or know of any other pitfalls ?

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By Sheepy306
29th Mar 2012 00:45

Engagement letters will need to be adapted to remove any reference to ICAEW, usually just complaints procedure etc. Inform PI insurer. Remove ICAEW logo's and references on company stationery and publicity material, website etc.

Yes, register with HMRC for money laundering.

Refer audits and regulated work to other firms,

Drop the ICAEW accountants report from clients financial statements.

And.......enjoy not worrying about ICAEW visits, regulation and subscription fees !

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By E Scott
30th Mar 2012 10:08

Think about your clients

Dropping the regulation is all very well but you should be aware that you will also be losing the ability to sign off mortgage and loan references on behalf of your clients.  I work in the finance industry and this is a massive frustration for us when we receive applications from clients who then have to jump through 10 hoops or change accountants just to get finance in place because their account 'is not qualified'.  From a clients perspective (and I'm sure your existing ones won't care) if you are referring some of your work elsewhere then is this providing a full service?  How are they going to feel sure that you are maintaining your CPD and are adequately insured?  These things may well put new clients off.  I'm not sure that given the hard work and effort to get the qualification that I'd be so keen to give it up!

 

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Replying to neiltonks:
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By John Wheeley
03rd Apr 2012 12:18

Mortgages

I disagree that there are 10 hoops. It is easy to obtain SA302 confirmation of income from HMRC (just call the agent helpline and they are sent in the post).

I resigned from ICAEW about six years ago and I am very pleased that I did so.

 

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By neileg
30th Mar 2012 11:02

Eh?

Surely the remaining CA partner can continue to audit and do the other regulated work but he/she will need to be the assignment partner not one of the unqualifieds.

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By Frustrated Accountant
30th Mar 2012 15:45

Surely E Scott points out a failing of the banks, not the accountants. If you have passed your exams in particular, precisely what do they think remaining part of an Institute adds to that individual's ability to do mortgage references? Honestly it's an unreasonable restraint of trade and I very much suspect illegal under EU law. Competence and member of an Institute are not the same thing from both sides of the equation.

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By timneale
03rd Apr 2012 11:09

Oh deary me...

Most of the above advice is rubbish. The lack of ICAEW partners will have implications for the name of the firm, but the firm can continue to be regulated by the ICAEW and carry out its business as normal. The other partners, although not needing to be ICAEW qualified, can have alternative qualifications and some *may* need to demonstrate to ICAEW that they are suitable to be partners in the firm - read the members handbook, or speak to the Institute, they're there to help.

 

 

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By Laurence52
03rd Apr 2012 11:46

A follow up to timneale's post above

The non ICAEW partner may well be able to become an affiliate of the ICAEW.

Read under GENERAL AFFILIATES from this ICAEW helpsheet

http://www.icaew.com/en/members/advisory-helplines-and-services/~/media/...

 

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By gerrysims
04th Apr 2012 07:15

Thanks for the comments, I have passed them on.

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By 2156806
10th Apr 2012 09:49

Incorporate
Have you considered incorporating the practice and having the qualified accoutants with a 51% shareholding - this works for ACCA so may be same for ICAEW. Maybe an option.

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