PABICAJ SEMINAR PRESENTED BY C PATRICIA HAYLE TOPICS
PAB/ICAJ SEMINAR PRESENTED BY C. PATRICIA HAYLE
TOPICS 24 0 - FE ES & OTHER TYPES OF REMUNERA TION 250 - PRO MOTIONAL MATERIAL & ACTIVITIES 260 - GIFT S AND HOSP I TALI TY 27 0 - CUSTODY OF CLI ENT ASSETS 280 - OBJECTIVITY – ALL SERVICES
SECTION 240: FEES & OTHER TYPES OF REMUNERATION
FEES & OTHER TYPES OF REMUNERATION WHEN ENTERING SERVICES, A INTO REGISTRANT NEGOTIATIONS MAY QUOTE REGARDING WHATEVER PROFESSIONAL FEE IS DEEMED APPROPR IAT E. THE FAC T THAT ONE REGISTRANT MAY QUOTE A FEE LOWER THAN ANO THER IS NOT IN ITSELF UNETHICAL. N EVERTHELESS, THERE MAY BE THREA TS TO COMPLIANCE WITH THE FUNDAMENTAL PRINCIPLES ARIS ING FR OM THE L EVEL OF FEES QUOTED. FOR EXAMPLE, A SELF- INTE REST THREAT TO PROFESSIONAL COMPETENCE AND DUE CARE IS CR EAT ED IF THE FEE QUOTED IS SO LOW THAT IT MAY BE DIFFICULT TO PER FOR M THE ENGAG EMENT IN ACCORDANCE WITH TECHNICA L AND PROFES SIONAL STANDARDS FOR THAT PRICE. APPLICABLE
FEES & OTHER TYPES OF REMUNERATION LET TER S OF ENGAGEMENT SHALL STATE THE FEES TO BE CHARGED OR THE BASIS UPON WHICH THE FEES ARE CALCULATED. WHER E T H E LETTER OF ENGAGEMENT IS NOT EXPLICIT WITH REGARD TO THE BASI S O N WHICH FEES ARE CALCULATED, THE REGISTRANT SHALL CHARGE A FEE WHICH IS FAIR AND REASONABLE. PA B DOES NOT PRESCRI BE THE BASIS FOR CALCULATING FEES NOR DOES IT SE T CHARGE-OUT RATES. IN OR DER TO PRESERVE THE REGISTRANTS’ OBJECTIVITY, FEES SHALL NOT BE CHAR G ED ON A PERC ENTAGE, CONTINGENCY OR SIMILAR BASIS, SAVE WHER E T H AT COURSE OF ACTION IS GENERALLY ACCEPTED PRACTICE FOR CERTAIN SPECIALIZED WORK
SECTION 250: PROMOTIONAL MATERIAL & ACTIVITIES
PROMOTIONAL MATERIAL & ACTIVITIES 250. 10 PROMOTIONAL MATERIAL MAY CONTAIN ANY FACTUAL STATEMENT, TH E TRUTH OF WHICH THE REGISTRANT IS ABLE TO JUSTIFY, BUT IT SHA LL NOT MAKE UNFLATTERING REFERENCES TO, OR UN FLA TTERING COMPARISONS WITH, THE SERVICES OF OTHERS. 250. 11 REGISTRANTS ARE REMINDED THAT ANY PROMOTIONAL ACTIVITY SHA LL BE CARRI ED OUT IN ACCORDANCE WITH ANY RELEVANT LEGISLATION. FOR EXAMPLE, A REGISTRANT SHALL COMPLY WITH LEGISLATION RE LATING TO THE MAKING OF UNSOLICITED TELEPHONE CALL S, FACSIMILE TRANSMISSIONS OR OTHER ELECT RONIC COMMUNICATION TO A NON-CLIENT WITH A VIEW TO OBTAINING PROFESSIONAL WORK. 250. 12 AN Y PROMOTION AL ACTIVITY UNDERTAK EN BY A REGISTRANT, OR HIS/HER AGENT, SHALL NOT BE ALLOWED TO CONSTITUTE HARA SSMENT OF THE NON-CLIENT.
SECTION 260: GIFTS AND HOSPITALITY
GIFTS AND HOSPITALITY
GIFTS AND HOSPITALITY
GIFTS AND HOSPITALITY 260. 2 TH E EXISTENCE AND SIGNIFICANCE OF ANY THREAT WILL DEPEND ON THE NATURE, VALUE, AND INTENT OF THE OFFER. WHERE GIFTS OR HO SPITALITY A RE OFFERED THAT A REASONABLE AND INFORMED CIRCUMSTANCES, WOULD CONSIDER TRIVIAL AND INCO NSEQUENTI AL, A REGISTRANT MAY CONCLUDE THAT THE OFFER IS MADE I N THE NORMAL COURSE OF BUSINESS WITHOUT THE SPECIFIC INTENT TO INFLUENCE DECISION MAKING OR TO OBTAIN INFORMATION. IN SUCH CASES, THE REGISTRANT MAY GENERALLY CONCLUDE THAT ANY THREAT TO COMPLIANCE WITH THE FUN DAMENTAL PR INCIPLES IS AT AN ACCEPTABLE LEVEL. THIS S HO ULD BE DOCUMENTED.
GIFTS AND HOSPITALITY
SECTION 270: CUSTODY OF CLIENT ASSETS
CUSTODY OF CLIENT ASSETS
CUSTODY OF CLIENT ASSETS
CUSTODY OF CLIENT ASSETS
CUSTODY OF CLIENT ASSETS CLIE NTS ’ MONIES
CUSTODY OF CLIENT ASSETS CLIE NTS ’ ACCOUNTS
CUSTODY OF CLIENT ASSETS OPENING A CLIENT BANK ACCOUNT 27 0. 12 W HENEVER A FI RM OPENS A CLIENT ACCOUNT, IT SHALL GIVE WRITTEN NOTIC E IN CLEAR TERMS TO THE BANK CONCERNED AS TO TH E NATURE OF THE ACCOUNT. 27 0. 13 T H E NOTICE S HALL REQUIRE THE BANK TO ACKNOWLEDGE IN WRITING THAT IT ACCEPTS THE TERMS OF THE NOTICE.
CUSTODY OF CLIENT ASSETS PA YMENTS INTO A CLIEN T BANK ACCOUNT 27 0. 14 WH ER E A FIRM RE CEIVES FUNDS THAT INCLUDE BOTH CLIENTS’ MO NIES AND OTHER MONIES, IT SHALL PAY THEM INTO A CLIENT ACCO UNT. 27 0. 15 O NCE MONIES HAVE BEEN RECEIVED ACCOUNT, PART OF THE SUM RECEIVED AS CAPROPERLY N BE TRANSFERRED TO IN ACCOR OFFICE ACCOUNT GUIDANCE AN OUT ITHE N S WIT DANCE ET H PAR AGRAPHS 270. 17 TO 270. 18 BELOW. INTO SUCH A CLIENT 27 0. 16 SA VE AS REFERRED TO IN PARAGRAPH 270. 15 ABOVE, NO MONIES OTHER THAN CLI ENTS’ MONIES SHALL BE PAID INTO A CLIENT ACCO UNT.
CUSTODY OF CLIENT ASSETS WIT HDRAWALS FROM A CLIENT BANK ACCOUNT 27 0. 17 TH E FOLLOWING MAY BE WITHDRAWN FROM A CLIENT BANK ACCO UNT, PROVI DED THAT THE SUMS WITHDRAWN SHALL NOT EXCEED THE TOTAL OF THE MONIES HELD FOR THE TIME BEING IN TH E A CCOUNT OF THE CLIENT CONCERNED: DEBTS OF IN OF (A) MONIES P ROPERLY REQUIRED FOR A PAYMENT TO OR ON BEHALF OF A CLIENT; (B) MONIES P ROPERLY REQUIRED FOR OR TOWARDS PAYMENT RESPECT OF FEES OR COMMISSION S EARNED BY THE FIRM; (C) MONIES P ROPERLY REQUIRED FOR OR TOWARDS PAYMENT FEES OR C OMMISSIONS PAYABLE TO THE FIRM BY A CLIENT FOR WORK PROPERLY CARRIED OUT BY THE FIRM; ALL MONIE S DRAWN MUST BE SUPPORTED BY WRITING ON A CLIENT’S AUTHORITY OR IN CONFORMITY WITH ANY CONTRAC T BETWEEN THE FIRM AND A CLIENT.
CUSTODY OF CLIENT ASSETS 27 0. 18 M ONIES SHALL NOT BE WITHDRAWN FROM A CLIENT BANK ACCOUNT PAY AB LE UNDER PAR AGRAPH 270. 17 ABOVE UNLESS: ( A) THE CLI ENT HAS BEEN NOTIFIED IN WRITING THAT MONIES HELD OR R ECEIVED ON THE CLIENT’S BEHALF WILL BE APPLIED AGAINST THOSE FEES OR COMMISSIONS, AND THE CLIEN T H AS NOT DISAGREED; AND ( B) A PRIN CI PA L OF THE FIRM HAS EX PRESSLY AUTHORIZED THE WITHDRAWAL; AND ( C) EITHER: (I) 3 0 DAYS HAVE ELAPSED SINCE THE DATE OF DELIVERY OF THE CLIENT OF THE NOTIFICATION; OR (II) TH E PRECISE AMOUNT TO BE WITHDRAWN HAS BEEN AGR EED WITH THE CLIENT IN WRITING OR HAS BEEN FI NALLY DETERMINED BY A COURT OR ARBITRATOR.
CUSTODY OF CLIENT ASSETS 27 0. 19 A FIR M SHALL BE CAREFUL TO DIFFERENTIATE, BOTH IN ITS RECO RDS AND, WHERE APPROPRIATE, IN ITS USE OF CLIENT ACCO UNTS, BETWEEN MONIES HELD ON BEHALF OF CLIENTS IN TH EIR PERSONAL CAPACITY AND THOSE, WITH THE KNOWLEDGE OF TH E FIRM, HELD ON BEHALF OF THOSE SAME CLIENTS AS TRUST EES FOR OTHERS. A SEPARATE CLIENT ACCOUNT SHALL BE OPENED TO RECEIVE THE TRUST MONIES OF EACH SEPAR AT E TRUST. 27 0. 20 BA NK CHARGES FOR MAINTAINING CLIEN T ACCOUNTS SHALL BE PAID ACCO UNT. HOWE VER THE FIRM MAY COVER SUCH CHARGES AS AN EXPENSE IN UNDE RTAKING THE ASSIGNM ENT ON BEHALF OF THE CL IEN T.
CUSTODY OF CLIENT ASSETS FE ES PAID IN ADVANCE 27 0. 21 FE ES PAID BY CLI ENTS IN ADVANCE FOR PROFESSIONAL WORK AGR EED TO BE PE RFORMED AND CLEARLY IDENTIFIABLE AS SUCH SHA LL NOT BE RE GARDED AS CLIENTS’ M ONIES FOR THE PURPOSES OF T HIS CODE. 27 0. 22 REGISTRANTS ARE REMINDED THAT, WHERE PROFESSIONAL WORK PAID FOR IN ADVANCE IS NOT CARRIED OUT, FEES ADVANCED BY THE ENSURE THAT SU FFICIENT FINANCIAL RESOURCES TO MEET ANY SUCH REPAYMENT ARE AVAILABLE.
CUSTODY OF CLIENT ASSETS INTE RES T PAYABLE ON CLIENT ACCOUNT MONIES 27 0. 23 SUB JECT TO PARA GRAPH 270. 24 BELOW, IN RESPECT OF ALL MONIES HELD BY A FIRM ON BEHALF OF CLIENTS, THE FIRM SHALL PAY CL IEN TS INTERES T OF NOT LESS THAN THE LOWEST RATE OFFERED BY THE FIRM’S BANK ON DEPOSITS FOR THE PERIOD THAT THE FUN DS ARE HELD ON BEHALF OF THE CLIENT. 27 0. 24 TH E OBLIGATION IN PARAGRAPH 270. 23 E MAY BE OVER-RIDDEN BY EXPR ESS WRITTEN AGREEMENT BETWEEN THE REGISTRANT AND A CL IEN T. FOR INSTANCE, CLIENTS COULD AGREE TO FORGO SUMS OF INT ER EST LESS THAN, AGREED AMOUNTS, OR A FUNDS HELD ON THE CL IEN TS’ BEHALF FOR PERIODS OF LESS THAN (SAY) ONE MONTH.
CUSTODY OF CLIENT ASSETS INTE RES T PAYABLE ON CLIENT ACCOUNT MONIES 27 0. 23 SUBJECT TO PARAGRAPH 270. 24 BELOW, IN RESPECT OF ALL MONIES HELD BY A FIRM ON BEHALF OF CLIENTS, THE FIRM SHALL PAY CL IEN TS INTERES T OF NOT LESS THAN THE LOWEST RATE OFFERED BY THE FIRM’S BANK ON DEPOSITS FOR THE PERIOD THAT THE FUN DS ARE HELD ON BEHALF OF THE CLIENT. 27 0. 24 TH E O BLIGATION IN PARAGRAPH 270. 23 E MAY BE OVER-RIDDEN BY EXPR ESS WRITTEN AGREEMENT BETWEEN THE REGISTRANT AND A CL IEN T. FOR INSTANCE, CLIENTS COULD AGREE TO FORGO SUMS OF INT ER EST LESS THAN, AGREED AMOUNTS, OR A FUNDS HELD ON THE CL IEN TS’ BEHALF FOR PERIODS OF LESS THAN (SAY) ONE MONTH. MONI ES HEL D BY THE FIRM AS STAKEHOLDER 27 0. 26 MO NIES HELD BY A REGISTRANT AS STAKEHOLDER SHALL BE REGA RDED AS CL IENTS’ MONIES AND SHALL BE PAID INTO ANK SEPAR AT E CL IE NT BANK ACCOUNT.
CUSTODY OF CLIENT ASSETS MAINT AIN ING RECORDS 27 0. 27 A FIR M SHALL AT ALL TIMES MAINTAIN ACCURATE RECORDS AND CONT ROLS (E. G. BY WAY OF RECONCILIATIONS) SO AS TO SHOW CL EA RLY THE MONIES IT HAS RECEIVED, HELD, AND PAID ON ACCO UNT OF THE IR CLIENTS, AND THE DETAILS OF ANY OTHER MO NIES DEALT WITH BY THEM THROUGH A CLIENT ACCOUNT, CL EA RLY DISTINGUISHING THE MONIES OF CLIENTS FROM THE FIR M’ S OWN MONIES. 27 0. 28 A REGISTRANT SH ALL MAINTAIN SUCH RECORDS FOR A PERIOD OF NO T LESS THAN S IX YEARS FROM THE DATE OF THE LAST TRAN SACTION RECORDED.
CUSTODY OF CLIENT ASSETS FEES AND FEE DISPUTES 270. 29 THE ATTENTION OF REGISTRANTS IS DRAWN TO THE GUIDANCE ON FEES CONTAINED IN SECTION 240, FEES AND OTHER TYPES OF REMUNERATION. 270. 30 A REGISTRANT SHALL NOT WITHHOLD DUE PAYMENT OUT OF MONIES TO CLIENTS FOR THE SOLE REASON THAT A DISPUTE EXISTS IN RELATION TO FEES. BANK 270. 31 THE TERM “BANK” MEANS AN INSTITUTION LICENSED UNDER THE BANKING ACT OR BANKING SERVICES ACT AND INCLUDES A BUILDING SOCIETY REGISTERED UNDER THE BUILDING SOCIETIES ACT. UNTRACEABLE FUNDS 270. 32 IN EXCEPTIONAL CIRCUMSTANCES CLIENT MONEY MAY BE WITHDRAWN FROM A CLIENT ACCOUNT ON THE WRITTEN AUTHORIZATION OF PAB, WHICH MAY IMPOSE THE CONDITION THAT THE MONEY BE PAID BY THE PROFESSIONAL ACCOUNTANT TO A CHARITY WHICH GIVES AN INDEMNITY AGAINST ANY LEGITIMATE CLAIM SUBSEQUENTLY MADE FOR THE MONEY IN QUESTION.
SECTION 280: OBJECTIVITY – ALL SERVICES
OBJECTIVITY – ALL SERVICES 280. 1 A REGISTRANT SH ALL DETERMINE WHEN PROVIDING ANY PROFESSIONAL S ERVICE WHETHERE ARE THREATS TO COMPLIANCE WITH THE FUNDAMENTAL PRINCIPLE OF OBJECTIVITY RESULTING FROM HAVING INTERESTS IN, OR RELATIONSHIPS WITH, A EXA MPLE, A FAMILIARITY THREAT TO OBJECTIVITY MAY BE CREATED FR OM A FAMILY OR CLOSE PERSONAL OR BUSINESS RELATIONSHIP OR A LONG STANDING CONTRACTUAL ARRANGEMENT.
OBJECTIVITY – ALL SERVICES 280. 2 A REGISTRANT WHO PROVIDES AN ASSURANCE SERVICE SHALL BE INDEPENDENT OF THE ASSURANCE CLIENT. INDEPENDENCE OF MI ND AN D IN APPEARANCE IS NECESSARY TO ENABLE THE REGISTRANT TO EXPR ESS A CONCL USION, AND BE SEEN TO EXPRESS A CONCLUSION, WI THOUT BIAS, CONFLICT OF INTEREST, OR UNDUE INFLUENCE OF OTHERS. SECTIONS 290 AND 291 PROVIDE SPECIFIC GUIDANCE ON INDEPENDENCE REQUIREMENTS FOR REGISTRANTS WHEN PER FO RMING AS SURANCE ENGAGEMENTS. 280. 3 TH E EXISTENCE OF THREATS TO OBJECTIVITY WHEN PROVIDING ANY PROFESSIONAL SE RVICE WILL DEPEND UPON THE PARTICULAR CIRCUMSTANCES OF THE ENGAGEMENT AND THE NATURE OF THE WORK THAT THE REGISTRANT IS PERFORMING.
OBJECTIVITY – ALL SERVICES 280. 4 A REGISTRANT SH ALL EVALUATE THE SIGNIFICANCE OF ANY TH REA TS TO INDE PENDENCE AND APPLY SAFEGUARDS WHEN NECESSARY TO E LIMINATE THEM OR REDUCE THEM TO AN ACCEPTABLE LE VEL. EXAMPLES OF SUCH SAFEGUARDS INCLUDE: WI THDRAWING F ROM THE ENGAGEMENT SUPERVISORY PROCEDURES. TER MINATING THE FINANCIAL OR BUSINESS RELATIONSHIP GIVING RISE TO THE THRE AT. FIRM DISCUSSING THE I SSUE WITH OTHER REGISTRANTS WITHIN THE DISCUSSING THE I SSUE WITH THOSE CHARGED WITH GOVERNANCE OF T HE CLIENT. HAVING AN INDE PENDENT REVIEW BY ANOTHER REGISTRANT. IF SA FEGUARDS CANNOT ELIMINATE OR REDUCE THREAT TO AN ACCEPTABLE LEVE L, THE REGISTRANT SHALL DECLINE OR TER MINATE THE R ELEVANT ENGAGEMEN T.
- Slides: 33