Anonymous
Share this content

Piggy backing my practising licence.

One of my ex colleague wants to run his practice on my licence.

Didn't find your answer?

I am a sole practitioner catering niche clientele. My setup, PI insurance and licences with CIMA align with my practice's size and fee income. One of my ex-colleague who was initially running his practice through IFA is considering to move to ACCA. He has asked me if he can keep on working through my membership while he is switching over. His practice is at least four times larger than mine with a few employees and has a below-average quality of clientele. 

What do I need to keep in mind before I let him deal with the public under my practising certificate? Is there any contract that needs to be in place as I will not be taking him on board as an employee? 

Is it advisable? If not, how can I say no to him politely?

 

Thanks

Replies (25)

Please login or register to join the discussion.

Routemaster image
By tom123
10th Feb 2021 16:26

It would be a hard NO from me, surely you can see that?

Thanks (3)
Stepurhan
By stepurhan
10th Feb 2021 16:28

Unless he is going to give you control of his practice, this would be a flat no from me.

You are risking your own reputation and, if something especially bad happened, possibly even your own livelihood. It is you who would be risking losing their practicing certificate if something went badly wrong, not them.

As for politely saying no, just use the same approach you would for a client you do not wish to work with.

Thanks (2)
avatar
By paul.benny
10th Feb 2021 16:49

If you were to do this, you'd need a weighty agreement that makes clear that all of the obligations for his clients and his work fall on him. Since the arrangement is for his benefit, you'd expect him to bear the legal fees for drafting the agreement.

You'd need to spend time supervising him and his work, doing all of the practice assurance stuff, and so. That would, of course be chargeable to him at your usual rates. Possibly with a discount for volume. Or possibly not because you'd otherwise be doing work for your regular clients.

And of course you'd want some indemnities, in case there are any claims arising from his, to cover your losses (time increased PII premiums, etc).

Does he still want to go ahead with this?

Thanks (1)
avatar
By Paul Crowley
10th Feb 2021 16:50

Why would he ask?

Thanks (3)
avatar
By lesley.barnes
10th Feb 2021 16:55

As others have said above, it would be a no, you have no control or any idea what your ex colleague is doing within his practice. Your PI insurance might not cover you if anything went wrong, if its your name over the door then its your responsibility.

I would think that the colleagues practice could be inspected by Cima for ML, record keeping etc as they are supervising you. You renew your Mip practicing licence each year and complete the return stating what you are doing - ML and record keeping etc. Would you be able to say that the ex colleague is following the same high standards ?

Finally what would happen if your ex colleague can't get a practicing licence from ACCA? Will this arrangement go on indefinitely? Why is he swopping from IFA to ACCA?

I think Cima wouldn't allow you to do this, its your licence not your ex colleagues, I would have a look at the conditions Cima places on your practicing licence in their handbooks and if you are still uncertain you would need to check with them.

Thanks (1)
avatar
By jonharris999
10th Feb 2021 16:55

I'm fairly sure this would breach CIMA's MiP rules unless you were Partners, or he was your employee.

Thanks (1)
Hitch photo
By Kevin Kavanagh
10th Feb 2021 16:57

This looks like a very odd request. However friendly I was with an ex colleague I would be politely declining for all the reasons already given.

Thanks (1)
A Putey FACA
By Arthur Putey
10th Feb 2021 17:11

Would you let him piggy back your significant other? What the hell, he's a mate.

Thanks (3)
Replying to Arthur Putey:
avatar
By DaveyJonesLocker
16th Feb 2021 08:13

He’d probably answer, if asked, in A Les Dennis Mavis Riley impression voice “well I don’t really know”

Thanks (0)
avatar
By frankfx
10th Feb 2021 17:17

Reality check.

Your ex colleague will want to control the methodology he uses with his clients.
Understandable.

From the outset your status will be undermined.

Relationship broke.

Indeed why would a professionally qualified accountant approach you in the first place?

It's non starter. It's unworkable, with unacceptable risk profile.

For that reason alone I would question his her judgement, skills?!

As a dragon might say.

I am out

Thanks (1)
avatar
By Paul Crowley
10th Feb 2021 17:59

Struggle to understand what he needs

If IFA works, stay with IFA until ACCA agrees.

Any problems with IFA?

Thanks (3)
RLI
By lionofludesch
10th Feb 2021 23:27

You don't need to say no politely.

Just say no.

Thanks (2)
Nigel Harris
By Nigel Harris
12th Feb 2021 09:33

Just no.

Thanks (1)
avatar
By 0098087
12th Feb 2021 09:39

Seriously? You are joking?

Thanks (1)
FirstTab
By FirstTab
12th Feb 2021 09:46

What would be your return for the risk?

Thanks (1)
avatar
By FCExtraordinaire
12th Feb 2021 12:10

If he doesn't deal with the clients or work in the same way as you , you could be facing PI claims.

Thanks (1)
avatar
By FCExtraordinaire
12th Feb 2021 12:10

If he doesn't deal with the clients or work in the same way as you , you could be facing PI claims.

Thanks (0)
avatar
By FCExtraordinaire
12th Feb 2021 12:10

If he doesn't deal with the clients or work in the same way as you , you could be facing PI claims.

Thanks (0)
avatar
By FCExtraordinaire
12th Feb 2021 12:10

If he doesn't deal with the clients or work in the same way as you , you could be facing PI claims.

Thanks (0)
avatar
By FCExtraordinaire
12th Feb 2021 12:11

If he doesn't deal with the clients or work in the same way as you , you could be facing PI claims.

Thanks (0)
avatar
By David Gordon FCCA
12th Feb 2021 12:34

Tain't legal

Thanks (1)
avatar
By dmmarler
15th Feb 2021 16:43

A brutal "no" will be difficult. However, you could say you have consulted with CIMA/your MiP insurers who have said you should not accede to his request. (You could check with them if you wanted to lend weight to the argument, but I am absolutely confident this will be their response.) You could also suggest he talks to ACCA about these plans ... Good luck.

Thanks (0)
Replying to dmmarler:
avatar
By Youareatit
15th Feb 2021 16:54

[quote=]''A brutal "no" will be difficult.''

Why would it be difficult?

I think a 'are you having a laugh' type of response is exactly what is needed here.

Thanks (0)
Replying to Youareatit:
RLI
By lionofludesch
15th Feb 2021 17:03

Quote:

Why would it be difficult?

I think a 'are you having a laugh' type of response is exactly what is needed here.

I agree.

This is a wholly unreasonable request. It needs a robust refusal.

Thanks (0)
Red Leader
By Red Leader
15th Feb 2021 18:46

So you'll be his Anti Money Laundering Officer. It'll certainly make your life interesting.

Thanks (0)
Share this content