[Global Financial Insights] FRC Disciplinary Tribunal Sanctions Chartered Accountant

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting and auditing practices from across the globe. Here is this week’s financial update:-

1. Financial Reporting Council disciplinary tribunal imposes sanctions against a member of the Chartered Institute of Management Accountants

The Financial Reporting Council’s (FRC) “Disciplinary Tribunal” has found a member of the Chartered Institute of Management Accountants (CIMA) guilty of serious professional misconduct arising from his sustained failure to cooperate with a regulatory investigation.

The misconduct relates to the repeated and prolonged non-compliance with the FRC’s investigation process. Despite being formally notified of the investigation in June 2023, the member failed to respond to multiple communications from the FRC over a period of more than twelve months. The Tribunal found that this conduct breached his fundamental duty under the “Accountancy Scheme” to engage with and assist regulatory inquiries.

In particular, the Tribunal held that the member ignored repeated attempts by the FRC to contact him by email, post, and telephone, even though the regulator had established his correct contact details. He also failed to comply with a formal notice issued under paragraph 14(2) of the Accountancy Scheme, which required him to propose dates for an interview with the FRC.

The Tribunal further noted that the member failed to submit any written representations in response to the “Proposed Formal Complaint” and did not engage meaningfully with the disciplinary process. Thus, failed to attend the Tribunal hearing itself. The Tribunal concluded that his non-attendance was deliberate and part of a broader pattern of disengagement.

Emphasising the public interest dimension of professional regulation, the Tribunal observed that cooperation with regulatory investigations is a core obligation of professional accountants. The member’s conduct was found to have frustrated the FRC’s investigation and undermined confidence in the disciplinary framework designed to protect the public and uphold professional standards.

On this basis, the Tribunal determined that the misconduct had been proved and proceeded to consider sanctions against the member. Considering all the irregularities, the Tribunal barred the member by excluding him as a member of the Chartered Institute of Management Accountants for a recommended period of 5 years.

Source : Financial Reporting Council

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