ACCA backs SRA crackdown on solicitors holding client money

The Association of Chartered Certified Accountants (ACCA) has given its backing to proposals from the Solicitors Regulation Authority (SRA) aimed at tightening oversight of solicitors who handle client money.

In response to the SRA’s consultation, the accounting body said it supports the move to reinstate the requirement of mandatory filing for all accountants’ reports with the SRA, whether qualified or unqualified.

The ACCA has also restated its support for the introduction of a compulsory yearly declaration from companies holding client funds.

The organisation does not, however, support the proposal that responsibility for filing the accountant’s report with the SRA should be placed on the reporting accountant rather than the company.

ACCA UK Technical and Strategic Engagement head Glenn Collins said: “The requirement to submit must rest with the client money-holding firm.

“This however would not preclude the client money-holding firm from retaining an accountant to submit the report, on their behalf, on an agency basis.”

Collins added that ACCA would be open to a system of dual notifications, noting that this would be consistent with arrangements in other supervisory frameworks where reporting accountants are required to send qualified reports directly to the regulator.

The ACCA also drew attention to day-to-day challenges for accountants working on these engagements, particularly when dealing with banks.

ACCA Regional Lead Policy and Insights – EEMA & UK – Joe Fitzsimons said: “Our members continue to highlight that obtaining bank confirmations, particularly for these types of accounts, is increasingly difficult.

“Alternative approaches the reporting accountant may take should also be included in the SRA guidance. Should the SRA wish to engage with banking regulators to highlight the importance of receipt of timely bank confirmations for these types of accounts, ACCA would be more than happy to assist.”

“ACCA backs SRA crackdown on solicitors holding client money” was originally created and published by The Accountant, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.