The Association of Chartered Accountants (ACCA) has backed proposals by the Solicitors Regulation Authority (SRA) aimed at strengthening oversight of solicitors handling clients’ money.
In response to the SRA’s consultation, the accounting body said it supports the move to reinstate the requirement for mandatory reporting by accountants to the SRA, whether qualified or not.
The ACCA has also reaffirmed its support for the introduction of mandatory annual reporting by firms holding client funds.
However, the organization does not support the proposal that the responsibility for submitting the accountant’s report to the SRA falls on the reporting accountant and not the company.
Glenn Collins, Director of Technical and Strategic Engagement at ACCA UK, said: “The filing requirement should fall on the company that holds the client’s money.
“However, this would not prevent the client’s money holding company from hiring an accountant to file the report, on its behalf, through an agency.”
Collins added that the ACCA would be open to a dual reporting system, noting that this would be consistent with arrangements in other supervisory frameworks where reporting accountants must submit qualified reports directly to the regulator.
The ACCA also drew attention to the daily challenges for accountants working on these engagements, particularly when dealing with banks.
ACCA Regional Policy and Information Leader – EEMA and UK – Joe Fitzsimons said: “Our members continue to highlight that obtaining bank confirmations, particularly for these types of accounts, is becoming increasingly difficult.
“Alternative approaches that the reporting accountant can take should also be included in the SRA’s guidance. If the SRA wishes to engage with banking regulators to highlight the importance of receiving timely bank confirmations for these types of accounts, ACCA will be more than happy to help.”
“ACCA backs SRA crackdown on solicitors holding clients’ money” was originally created and published by The Accountant, a brand owned by GlobalData.
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