ETHICS

Fundamental principles
 Professional behaviour
 Objectivity
 Professional due care and competence
 Confidentiality
 Integrity

New clients

Before taking on a new client the member should consider whether:

 acting for the client will pose any risk to the practice in terms of his/her integrity. This
would include assessing the potential client's personal and business circumstances, and
attitude to disclosure and compliance with tax law
 the member and his/her firm have the skills and competence to service the client's
requirements
 the potential client is involved in any activity that could be considered as money
laundering.

In the case of a limited company, the following information should be gathered:

Proof of incorporation and primary business address and registered office.
The structure, directors and shareholders of the company.
The identities of those persons instructing the firm on behalf of the company and those
persons that are authorised to do so.

In the case of an individual, the following information should be gathered:

Proof of identity and residential address.

Any unincorporated business interests and if so details of the nature and structure and
those persons that are authorised to act on behalf of the business (e.g. partners in a
partnership).

Once it has been decided that the member can act for the client he/she should:

 ask permission to contact the old advisors to request the information necessary to
decide whether it is possible to act for the client (the old advisor should seek the
client's permission before discussing his/her situation with the new advisor)

 if the client does not give permission to contact the old advisors the member
should give serious consideration as to whether he/she is prepared to act for the
client.
 ETHICS

Conflicts of interest

A member should not put themselves in the position where acting for two clients creates a
conflict of interest.

 the potential conflict should be pointed out to all of the relevant parties
 consent should be obtained to act for them
 the firm must have clear guidelines in relation to confidentiality, and
should
 consider the need to use separate teams for each client.

Dealing with HMRC

Once an error has been discovered:

 the member should explain to the client the requirement to notify HMRC as soon
as possible, and the implications of not doing so.
 The letter of engagement may include a section with regard to disclosure
of information to HMRC, if so it would be courteous to inform the client
of the intention to disclose.

Should the client refuse to make a full and prompt disclosure to HMRC:

the member must write and explain the potential consequences, and
consider whether the amount is material, and if it is, whether he/she should continue to
act for the client.

If the client still refuses to make a full disclosure, the member:

should cease to act for the client

must then also write to HMRC informing them that he/she has ceased to act for the
client, but without disclosing the reason why.
must then consider his/her position under the Money Laundering Regulations.

Employees
 Is there anyone else in the company with whom it may be appropriate to discuss
these concerns?
 Consider taking advice from the ACCA or legal advice on the relevant course of
action.
 ETHICS

 Consider making a report to the company's money laundering reporting officer, if

there is one and, if not, direct to the NCA
 Consider looking for alternative employment
 Consider whether disclosure should be made under the Public Interest Disclosure
Act. Does the employer have in place any policies with regard to disclosures
under this act? Consider taking legal advice before pursuing this course of action