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ICAEW takes disciplinary action on SRA assignment

Following on from a recent update by the Solicitors Regulation Authority (“SRA”) regarding the provision of banking facilities, an ICAEW Disciplinary Update has advised the following:

“A member was severely reprimanded and fined £12,250.  The member was the responsible individual for the preparation of Solicitors Regulation Authority (SRA) Accountant’s Reports submitted for a client for two years, and the member:

    • Failed to identify that banking facilities were being provided through client accounts in breach of Rule 14.5 of the SRA Accounts Rules and contrary to section 130.1 of the Code of Ethics; and

    • Failed to identify those payments relating to private loans were being made from one client to another in breach of Rule 27.2 of the SRA Accounts Rules and contrary to section 130.1 of the Code of Ethics.”

It is vital that staff working on these assignments understand the risks here. Our recent SRA update covered the importance of this and our Introduction to SRA Assignments will provide more junior staff with an overview of the issues here.

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