Delegated powers policy

Transcription

1 Delegated powers policy Revised September

2 Contents Introduction... 3 The Association of Accounting Technicians... 3 The compliance framework and procedures of AAT... 3 Compliance framework... 4 About this publication... 5 Related publications... 5 Scope of regulatory policy and powers Delegated powers Commencement Definitions Scope of Delegated powers Use of Delegated powers for disciplinary cases Use of Delegated Powers for suitability assessments of membership applications Overview and sampling of cases disposed of by way of delegated powers Delegated powers Schedule 1 Disciplinary cases Delegated powers Schedule 2 Student membership applications Delegated powers Schedule 3 Full membership applications and renewals

3 Introduction The Association of Accounting Technicians The Association of Accounting Technicians (AAT) upholds high standards of competence and professional conduct. Accountancy is a trusted and respected profession and AAT ensures that members: behave professionally and ethically comply with AAT regulations and relevant legislation keep their skills and competence up to date. AAT also investigates complaints and misconduct allegations against AAT members and approved training providers. Depending on the circumstances, AAT may resolve these complaints informally or take disciplinary action. The compliance framework and procedures of AAT AAT endeavours to ensure that all applicants and members are treated fairly and consistently in accordance with the compliance framework agreed by Council that users of members services are protected and that the reputation of the profession is maintained. The compliance framework of AAT is governed by the AAT Articles of Association and sets out the following compliance regulations and guidance that ultimately members must meet. Members in practice regulations Compliance requirements for members providing self-employed accountancy services. Disciplinary regulations To address non-compliance issues. The regulations and guidance are underpinned by publications covering specific areas of compliance policy and related procedures which include: insolvency policy convictions, civil sanctions and disciplinary findings policy delegated powers for the handling of investigations indicative sanctions guidance appeals policy and procedure. Information on the processes that put the different areas of compliance policy into practice and which must be understood and followed by members and applicants for membership as applicable, are included in these publications. Further information on the compliance framework is available at aat.org.uk including the purpose of each publication and how they relate to each other. Further details also include: fees in relation compliance, such as the cost of appeals an updates page providing information on changes to compliance publications and any relevant transition arrangements. 3

4 Compliance framework The structure of the compliance framework is shown below. The publications that are currently in force should be referred to online together with the updates page to highlight any changes in the latest edition of each publication. Articles of Association Compliance policy and regulations Code of professional ethics Members in practice regulations Disciplinary Regulations Indicative sanctions guidance Members in practice regulations guidance Implementation policies, powers and procedures Insolvency policy Pre-hearing review policy Convictions, civil sanctions and disciplinary findings policy Appeals policy and procedure Delegated powers policy Conciliation guidelines Supporting information Complainants guide to the complaints process AAT website- professional standards aat.org.uk AAT Ethics microsite aat-ethics.org.uk Members guide to the complaints process Members guide to the disciplinary process Applicants guide to declarations and disclosure: full membership 4

5 About this publication This publication sets out the scope of when AAT can use the powers delegated to them by the Council of AAT to progress proceedings on: disciplinary cases student membership applications full membership applications. The use of the delegated powers provides for more efficient handling of membership applications and disciplinary findings so that cases are not unnecessarily delayed, and are progressed on a consistent, fair and equitable basis, while allowing for assessment by members of the Investigations Committee for the consideration of individual circumstances, including mitigating factors. Related publications AAT's Articles of Association do not allow a person to be admitted to membership unless they meet professional standards requirements as detailed in the following AAT policies: insolvency policy convictions, civil sanctions and disciplinary findings policy. indicative sanctions guidance members in practice regulations disciplinary regulations Insolvency policy The Insolvency policy explains factors that AAT may consider when assessing applications for admission (or readmission) to membership where the applicant is or has been insolvent and how such matters may be considered as potential misconduct. This may be brought to the attention of AAT during the course of an individual's membership through a declaration by the member, or notification by a third party AAT. Convictions, civil sanctions and disciplinary findings policy Student members and full members have a duty to inform AAT of the receipt of any convictions, civil sanctions or adverse disciplinary findings during their membership of AAT. The existence of one or more convictions, a civil sanction or an adverse finding by another professional body may result in disciplinary action against a member or, for an applicant for membership or to become a member in practice, a refusal of that application. The Convictions, civil sanctions and disciplinary findings policy sets out AAT's approach to applications in these circumstances. Where relevant, this policy should be read in conjunction with the Indicative sanctions guidance on the action and sanctions that should apply in cases of professional practice issues and misconduct. Indicative sanctions guidance The Indicative sanctions guidance supports consistent decisions on the appropriate sanctions to be applied in the event of misconduct and provides a platform for the most suitable and proportionate action to be taken by AAT, including the right level of sanction(s). 5

6 Members in practice regulations Members of AAT who are registered or licensed under the Members in practice scheme, must comply with the Members in practice regulations which set out the required standards and practice. Explanatory guidance has been built into the regulations to demonstrate clearly how the regulations apply in practice. Failure to comply with the regulations may warrant disciplinary action which is exercised in accordance with the Disciplinary regulations. Disciplinary regulations AAT's Disciplinary regulations set out the requirements that must be met in relation to the disciplinary procedures of AAT and how consideration of grounds for disciplinary action to address potential professional practice issues and misconduct is taken forward. 6

7 Scope of regulatory policy and powers 1. Delegated powers 1.1. Council is satisfied that in a number of circumstances, it is appropriate for them to delegate powers to secretariat, for Conduct and Compliance to take decisions on behalf of the relevant decision making authority, and to nominate other relevant areas of AAT to be involved in the handling of cases under delegated powers, as required AAT s Disciplinary regulations permit the Conduct and Compliance team to complete investigations and proceed with making recommendations as if it were the Investigations team (IT) in accordance with paragraph 26 on the Delegation of powers to Conduct and Compliance 1.3. Paragraph 27 of the Disciplinary regulations on the Delegation of powers to Conduct and Compliance compels Conduct and Compliance to exercise its powers in accordance with any relevant policy issued from time to time by Council. This document is the policy to which those paragraphs relate In respect of applications for membership, Article11(1) from AAT s Articles of Association states that no person shall be admitted to membership unless and until they meet the relevant requirements in respect of professional standards, amongst other criteria, as determined by Council. Those professional standards requirements are detailed in the Insolvency policy and the Convictions, civil sanctions and disciplinary findings policy Membership assessors have the authority to make decisions in respect of admission. However, Council intends for decision-making in a number of circumstances, to be undertaken by Conduct and Compliance as if it were the membership assessor. 2. Commencement 2.1. This policy on delegated powers was finalised on 11 July 2013 and approved by the Council. It will commence operation on 1 September This policy supersedes all previous corresponding policies on these matters and will be subject to regular review. 7

8 3. Definitions The following definitions apply for the purposes of this policy and procedure and associated guidance. Address A postal address or, for the purposes of electronic communication, a fax number, and or postal address or a telephone number for receiving text messages in each case registered with the association. Articles The Articles of Association and the regulations of the Association from time to time in force. Association The Association of Accounting Technicians the company regulated by the Articles of Association (See Articles above). Code of professional ethics Conduct and Compliance The AAT code that sets out fundamental ethical principles, guidance and required standards of professional behavior, to support the quality of decision-making and understanding of ethical implications for professional practice. It is based on the Code of Ethics for Professional Accountants approved by the International Ethics Standards Board for Accountants (IESBA). The Conduct and Compliance team of AAT. Convictions, civil sanctions and disciplinary findings policy Council The policy that sets out AAT s approach and procedures for handling applications for student and full membership (including renewals and readmissions) in circumstances where an applicant has disclosed a previous conviction for criminal offences, a civil sanction and/or exclusions by another professional body on disciplinary grounds. It also covers procedures for disciplinary action in these circumstances. Collectively, the Members of Council at any given time. Disciplinary regulations The AAT regulations that set out the requirements to be met in relation to the disciplinary procedures of AAT and how consideration of grounds for disciplinary action to address potential professional practice issues is taken forward. Disciplinary Tribunal The Tribunal (comprising three members of the Disciplinary Committee) appointed under the Disciplinary regulations to determine a case. Fee(s) Fellow The fee or fees set from time to time by Council for any purpose under these regulations. Member who has satisfied the requirements for Fellow Membership and been admitted by the Council to the status of Fellow Member. 8

9 Indicative sanctions guidance Insolvency policy Guidance on the determination of sanction(s) where a member has been found to be guilty of misconduct in accordance with the procedures as set out in the Disciplinary regulations. The policy on the factors that AAT may consider for an applicant or member that is, or has been, insolvent, in the case of: applications for admission (or readmission to membership) where such information on the insolvency of a member has been brought to the attention of member inaat during the course of their membership and how AAT will consider matters such as potential misconduct. Licence Licensed member Issued to a member or Fellow Member who is a licensed and a regulated member in practice. A full or fellow member of AAT who holds a practising licence within the meaning of the Members in practice regulations. Member A student, affiliate, full or fellow member of AAT. Member in practice A member registered on the membership in practice scheme that requires compliance with the Members in practice regulations, who may or may not be a licensed member. Members registered on the scheme have up to two years to meet the requirements to become a licensed member. Members in practice regulations The regulations that must be complied with by Members in practice who may or may not be a licensed member (as defined above). Breach of the provisions of these regulations constitutes grounds for disciplinary action in accordance with AAT s Disciplinary regulations in force from time to time. Membership Assessor An assessor appointed by AAT to consider applications for membership in certain circumstances where declarations in relation to convictions or insolvency are made Notice of Decision Notice of Appeal Formal notice served on the member by Conduct and Compliance under the Disciplinary regulations. Formal notice served by the member under the Disciplinary regulations. Order of the Association A formal record of disciplinary action taken against a member Pre-hearing review policy Policy and procedures for pre-hearing reviews in the interests of ensuring a fair and timely hearing for the member under investigation. Suitability assessment AAT assessment of the suitability of applicants for different types of AAT membership making a declaration that could impact on their application, for example declaration of a conviction, 9

10 bankruptcy, or Individual voluntary Arrangement (IVA) for the payment of creditors. Student membership Full membership Registration on the Members in practice scheme A licence to practice. Student A person registered as a student with AAT. 10

11 4. Scope of Delegated powers Disciplinary cases 4.1 Council has delegated powers to Conduct and Compliance specifically, to take disciplinary action against a member in defined circumstances, if the member agrees to the action and sanction(s) they recommend. 4.2 In these circumstances, Conduct and Compliance has the authority to undertake any necessary investigations relating to the case and make recommendations as articulated in this policy as if it were the IT as convened in accordance with the Disciplinary regulations under paragraph 23 on the Appointment of Investigations Team and paragraph 25 on Further enquiries. Where delegated powers are applied within the scope of the policy, they supersede the polices set out in the Convictions, civil sanctions and disciplinary findings policy and the Insolvency policy unless aggravating factors are evident or mitigating circumstances are considered by Conduct and Compliance to necessitate referral to the Investigations Team, Investigations Committee, or Membership Assessor as applicable. Suitability assessment for membership applications - Insolvency and convictions policies 4.3 AAT s policies on insolvency and convictions both identify a number of circumstances whereby Conduct and Compliance may admit an applicant to student or full membership without referring the application to a Membership Assessor. 4.4 Likewise, a number of circumstances have been identified whereby applicants may not be admitted to membership. 4.5 The circumstances referred to in paragraphs 4.3 and 4.4 above have been replicated here for clarity on when delegated powers can and cannot be used. Suitability assessments of student or full membership applications are carried out when the applicant makes a declaration relating to an issue that could impact on whether they are permitted to become a member. Referral to an Investigations team or Membership Assessor 4.6 Where Conduct and Compliance consider that information provided by the applicant/member, or evidence provided through other sources, could indicate exceptional mitigating circumstances, and that the circumstances of the case are not proportionately addressed by the powers delegated to Conduct and Compliance, they may refer the case to an Investigation Team (for disciplinary cases), or a Membership Assessor (in the case of applications for student or full membership), as applicable, 4.7 For disciplinary cases, the investigation shall then proceed in accordance with paragraph 25 of the Disciplinary regulations on Further enquiries and not under delegated powers, as the existence (or not) of exceptional mitigating circumstances may have an impact on: (i) whether a finding of misconduct is sustainable; and/or (ii) the appropriate level of sanction to be imposed. 4.8 It will be for the applicant/member to prove the existence of these circumstances. 11

12 5. Use of Delegated powers for disciplinary cases Types of cases suitable for Conduct and Compliance delegated powers 5.1 Council has delegated powers to Conduct and Compliance pursuant to paragraphs 26 and 27 of the Disciplinary regulations to dispose of cases falling into the following categories without remitting the case to an Investigations Team for consideration: (i) non-renewal of licence (ii) student malpractice (iii) non-compliance with continuing professional development (iv) non-compliance with Money Laundering Regulations and/or AAT guidance. 5.2 The powers delegated to Conduct and Compliance on cases falling into the categories listed in 5.1 above are specified in Schedule 1 of this document. 5.3 Where Conduct and Compliance has made a recommendation in accordance with the provisions of the policy on delegated powers in this document, the member may refuse to consent to that recommendation and have their case considered by a Disciplinary Tribunal in accordance with paragraph 50 of the Disciplinary regulations on referring cases to the Disciplinary Committee. 5.4 Where the member provides his consent to the recommended order in accordance with paragraph 47 of the Disciplinary regulations on the member s response to recommended action/sanction(s), the matter shall be published in accordance with paragraph 51 of the Disciplinary regulations on Publication. 6. Use of Delegated Powers for suitability assessments of membership applications Insolvency policy 6.1 The Insolvency policy sets out the Association s position in respect of insolvency related matters which may impact on an applicant s suitability for student or full membership of AAT. AAT expects its members to manage their financial affairs correctly and efficiently at all times. Being insolvent indicates serious failure and calls into question a member s competence in the handling of client financial affairs. An applicant who is insolvent may not be suitable for admission (or readmission) to membership. A member is obliged to inform AAT when he becomes insolvent, so AAT can consider whether this has any bearing on continued membership. Convictions, civil sanctions and disciplinary findings policy 6.2 The Convictions, civil sanctions and disciplinary findings policy sets out the Association s position in respect of convictions which may impact on an applicant s suitability for student or full membership of AAT. 12

13 All members of AAT are expected to act with the highest standards of integrity, both in and outside their professional life. It is important that members of the public can have the utmost trust and confidence in those members of AAT whom they instruct to handle their financial affairs. Therefore the existence of one or more convictions may result in disciplinary action against a member or, for an applicant for membership or to become a member in practice, a refusal of that application, and why students and members have a duty to inform AAT of the receipt of any convictions during their membership of AAT. Delegated powers for student or full membership suitability assessments 6.3 The powers delegated to Conduct and Compliance in respect of student suitability assessment are detailed in Schedule 2 of this document. 6.4 The powers delegated to Conduct and Compliance in respect of full membership suitability assessment are detailed in Schedule 3 of this document 6.5 Where Conduct and Compliance has declined an application, the applicant may have a right of appeal in accordance with the provisions of the Appeals policy and procedure. 7. Overview and sampling of cases disposed of by way of delegated powers Disciplinary cases 7.1 In order to ensure that Conduct and Compliance are appropriately exercising their delegated powers, the Investigations Committee shall be tasked with considering a sample of cases concluded by Conduct and Compliance on at least an annual basis and report the outcome of that review to Council. Suitability assessment cases 7.2 All decisions made regarding suitability assessment applications for membership shall be countersigned by a member of the Conduct and Compliance management team who will affirm that delegated powers have been used appropriately in accordance with the provisions of this policy. Sampling by Membership Assessors 7.3 Membership Assessors shall be tasked with considering a sample of cases signed off by Conduct and Compliance on at least an annual basis and report the outcome of that review to the Regulation and Compliance Board through the Suitability Assessment case report. 13

14 Delegated powers Schedule 1 Disciplinary cases Disciplinary cases can relate to student and full members of AAT, including members who are licensed as a member in practice and/or who are registered on the scheme without having obtained a licence. The scheme operates on the basis that its members either have, or are working towards attaining, an AAT practising licence. If someone meets some but not all of the elements of the licence criteria, they may register on the scheme for a maximum of two years before applying for a licence. The following categories of non-compliance may be handled under the powers delegated to AAT by Council, to act on behalf of the relevant decision making authority, except in cases where mitigating factors are evident or are cited by the applicant/member, which may require referral to an Investigations Team or the Investigations Committee. Category Permitted action/sanction(s) under Delegated powers Non-renewal of practising licence Student malpractice (Following a finding by Malpractice Review Panel) Non-compliance with the policy on continuing professional development Expulsion - If the member in practice does not follow due process on the requirements and deadlines for renewal advised to them, including substantial and repeated opportunities to respond to reminders and warning letters advising the action to be taken. Severe reprimand Fine of 50 Expulsion If a member wilfully and persistently fails to comply with AAT s policy and due process communicated to them on continuing professional development, and fails to respond to respond to advice and reminders on the action to be taken. Non-compliance with the Money Laundering Regulations from time to time in force and/or AAT s guidance on antimoney laundering compliance Expulsion Fine 500 Recovery costs incurred by AAT in monitoring compliance Members must disclose all information that may be relevant to their continued eligibility for student or full membership. If at any time a member becomes aware that information they have provided for AAT to apply for or renew their membership is incorrect or has changed in any way, they must notify AAT within 30 days. Non-disclosure of relevant information can result in implementation of the disciplinary process and possible suspension of membership. All convictions to be declared must be unspent. Spent convictions do not need to be declared. 14

15 Delegated powers Schedule 2 Student membership applications Applications and renewals for student applications may be handled under the powers delegated to AAT by Council, to act on behalf of the relevant decision-making authority, except in cases where mitigating factors are evident or are cited by the applicant/member, which may require referral to a Membership Assessor. Category Permitted outcomes under Delegated powers Bankruptcy Discharged Admit to student membership Undischarged Refuse student membership Individual Voluntary Arrangement Admit to student membership County Court Judgement Admit to student membership Formal or informal arrangement with creditors Admit to student membership Summary conviction not relating to fraud, dishonesty or financial crime Admit to student membership Summary conviction relating to fraud, dishonesty or financial crime Refuse student membership All convictions to be declared must be unspent. Spent convictions do not need to be declared Applicants/members must disclose all information that may be relevant to consideration of their application for student membership /renewal and for their continued eligibility for membership. If at any time a member becomes aware that information they have provided for AAT to apply for or renew their membership is incorrect or has changed in any way, they must notify AAT within 30 days. Non-disclosure of relevant information can result in an application being referred to a Membership Assessor and membership being refused or suspended. 15

16 Delegated powers Schedule 3 Full membership applications and renewals The following categories of full membership applications and renewals may be handled under the powers delegated to AAT by Council, to act on behalf of the relevant decision making authority, except in cases where mitigating factors are evident or are cited by the applicant/member, which may require referral to a Membership Assessor. 1. Delegated powers in relation to insolvency Full membership applications Category Individual Voluntary Arrangement (IVA) IVA in place and payments up-todate for 12 months or more, and with less than 12 months of payments before the IVA is completed. Permitted outcome under Delegated powers Also refer to Insolvency policy Admit to membership if the following arrangements can be met: A declaration from the applicant/member that they are financially sound, and an undertaking to pay due care and attention to their financial arrangements. A character reference provided by a professional referee that is known to the member in a professional capacity. The reference should be provided on business stationery wherever possible and should include information on: The capacity in which the referee knows the person [The referee should not be a family member or friend] Membership of professional bodies Job title The length of time the referee has known the applicant/member Demonstrated knowledge of the applicant/member s professional conduct and due care and attention in a professional context. Payments under the IVA completed. As above IVA in place and payments up-todate for less than 12 months and/or more than 12 months of payments before the IVA is completed. Refuse admittance to membership and advise when a new application can be made if applicable. Bankruptcy Also refer to Insolvency policy Discharged Undischarged Admit to membership on condition that: A character reference is provided by a professional referee that is known to the member in a professional capacity (As stipulated for IVA - See above) Refuse admittance and advise applicant to reapply when the bankruptcy has been discharged. 16

17 2. Delegated powers in relation to convictions Full membership applications Category Permitted outcome under delegated powers Convictions Also refer to Convictions, civil sanctions and disciplinary findings policy Applicants for membership with a conviction for an indictable offence. Refuse admittance to membership Summary conviction relating to fraud, dishonesty or financial crime. Refuse admittance to membership All convictions to be declared must be unspent. Spent convictions do not need to be declared. Applicants for membership who disclose summary convictions not related to fraud may be admitted at the discretion of AAT. This consideration may require assessment by a Membership Assessor and will require submission of information on their conviction and character references. Applicants/members must disclose all information that may be relevant to consideration of their application for membership / membership renewal and for their continued eligibility for membership. If at any time a member becomes aware that information they have provided for AAT to apply for or renew their membership is incorrect or has changed in any way, they must notify AAT within 30 days. Non-disclosure of relevant information can result in the application being referred to a Membership Assessor membership being refused or suspended. 17