ACCA backs SRA crackdown on solicitors holding client money

The Association of Chartered Certified Accountants (ACCA) has fixed its backing to proposals from the Solicitors Regulation Authority (SRA) aimed astatine tightening oversight of solicitors who grip lawsuit money.

In effect to the SRA’s consultation, the accounting assemblage said it supports the determination to reinstate the request of mandatory filing for each accountants’ reports with the SRA, whether qualified oregon unqualified.

The ACCA has besides restated its enactment for the instauration of a compulsory yearly declaration from companies holding lawsuit funds.

The organisation does not, however, enactment the connection that work for filing the accountant’s study with the SRA should beryllium placed connected the reporting accountant alternatively than the company.

ACCA UK Technical and Strategic Engagement caput Glenn Collins said: “The request to taxable indispensable remainder with the lawsuit money-holding firm.

“This nevertheless would not preclude the lawsuit money-holding steadfast from retaining an accountant to taxable the report, connected their behalf, connected an bureau basis.”

Collins added that ACCA would beryllium unfastened to a strategy of dual notifications, noting that this would beryllium accordant with arrangements successful different supervisory frameworks wherever reporting accountants are required to nonstop qualified reports straight to the regulator.

The ACCA besides drew attraction to day-to-day challenges for accountants moving connected these engagements, peculiarly erstwhile dealing with banks.

ACCA Regional Lead Policy and Insights – EEMA & UK – Joe Fitzsimons said: “Our members proceed to item that obtaining slope confirmations, peculiarly for these types of accounts, is progressively difficult.

“Alternative approaches the reporting accountant whitethorn instrumentality should besides beryllium included successful the SRA guidance. Should the SRA privation to prosecute with banking regulators to item the value of receipt of timely slope confirmations for these types of accounts, ACCA would beryllium much than blessed to assist.”

"ACCA backs SRA crackdown connected solicitors holding lawsuit money" was primitively created and published by The Accountant, a GlobalData owned brand.

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