How do you record written permission?

How do you record permission from client to share their financial information

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I've been fired by a client this morning after they were declined by a lender for a mortgage.  Their company is not solvent/ overdrawn directors ac etc etc  but they feel I should have put a more "positive" slant on my Accountants Certificate and so it's my fault theyve been declined. Sigh 

We've all been here, clients like someone to blame but in amongst the various accusations they have made they have suggested I shared information with their FA that I shouldn't have

They emailed me with instructions to give their FA "whatever he needs" so I'm covered but it got my wondering if I should tighten up my processes.... do you have a specific form for clients to fill in to allow you to release information to FAs or similar? 

Replies (6)

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By Paul Crowley
04th Mar 2021 15:16

When asked
1 I prefer to send to client. Usually it is the client asking with no direct contact.
2 If requested by client to pass anything to third party I ask whether they agree all sent email or if they have concerns details can be sent in paper

Not yet had anyone refuse email
3 All emails to third parties are cc'd to client
If I erroneously just reply to 3rd party
I always forward same day or evening
FA and client are usually desperate, need it right now, The cc reduces the 'have you done it yet?' phone calls

ICAEW rules are clear
Only facts included
No opinions
No knowingly false estimates for a year that figures could be known for.

What could be meant by positive slant?

Problem was loan arranger promising what loan arranger could not deliver

I was recently asked by one such to confirm that trader was capable of working until aged 70.
I did not

Loan arranger will tell client it is your fault and that every other accountant tells whatever lies are needed. No reputable firm does any such thing.

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Replying to Paul Crowley:
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By Louise76
04th Mar 2021 16:00

Thank you , this is really helpful

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By Duggimon
04th Mar 2021 15:34

The client should be grateful, they'd be worse off if they got that mortgage they couldn't afford.

I don't have a formal process, I get the client to put in an email what they want sent and who they want it sent to, then I reply to that email, keeping their request as part of it, with the information required and add in the address of the FA or whoever.

Everyone in the chain knows and can check what was asked for and provided and I've got a written copy of all of it.

As for "positive slant" I never volunteer unsubstantiated opinions, or indeed any opinions. Strictly "the client receiver £X in income, the company had profits of £Y, there are £Z in retained profits that the client is entitled to draw on as and when required"

If the company is insolvent then those figures will be insufficient to secure much of anything, though I would probably say as much to the client in advance of providing anything to any third party.

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Replying to Duggimon:
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By Louise76
04th Mar 2021 16:02

I did exactly that, had a chat and explained the situation. They blamed their previous Accountant

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By ireallyshouldknowthisbut
04th Mar 2021 15:50

Pfft sour grapes.

I have been sacked more than once due to a client not getting a mortgage which was apparently 'my fault'

These day I always stress to anyone who looks a bit iffy that their numbers don't stack up and so lending maybe difficult so as to point the finger to the brokers who are often 'chancers' and will apply for things your client is not eligible for or is very borderline.

The facts about the past are the facts about the past. You should not(depending on you regulating body) be expressing any opinions or speculating about future events.

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By Truthsayer
04th Mar 2021 15:55

I always email the client to request permission to disclose any information that is requested or I consider relevant. That covers everything.

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