Oversight of ICAEW’s regulation and conduct role
ICAEW’s regulatory and conduct responsibilities are delivered by the Professional Standards Department (PSD). Our role is to strengthen confidence and trust in those regulated by ICAEW. We do this by Enabling, Evaluating and Enforcing the standards expected by the profession, oversight regulators and government.
This structure enables us to monitor, support and take steps to ensure change if standards are not met.
By following these 3Es, we ensure those regulated by ICAEW (ICAEW Chartered Accountants, accountancy firms, students and regulated and affiliated individuals) act in accordance with laws, regulations and expected professional standards.
All work carried out by PSD is overseen by the ICAEW Regulatory Board and oversight regulators, including the Financial Reporting Council, the Office for Professional Body Anti-Money Laundering Supervision, the Insolvency Service and the Legal Services Board.
ICAEW is*
• The largest recognised supervisory body and recognised qualifying body for statutory audit in the UK. There are 2,137 firms and 6,623 responsible individuals registered with us under the Companies Act 2006.
• The largest recognised supervisory body for local audit in England. We have 10 firms and 101 key audit partners registered under the Local Audit and Accountability Act 2014.
• The largest insolvency regulator in the UK. We license over 800 insolvency practitioners (out of a total UK population of 1,542) as a recognised professional body (RPB) under the Insolvency Act 1986.
• A designated professional body under the Financial Services and Markets Act 2000 (and previously a recognised professional body under the Financial Services Act 1986). We license 1,672 firms to undertake exempt regulated activities under this Act.
• A supervisory body recognised by HM Treasury for the purposes of the Money Laundering Regulations 2017, dealing with around 10,500 firms.
• An approved regulator and licensing authority for probate under the Legal Services Act 2007. Over 350 firms are accredited by ICAEW to carry out this reserved legal activity.
And:
• 245 firms are accredited to perform ATOL returns work under the ICAEW Licensed Practice scheme for ATOL Reporting Accountant work. This was set up in 2016 after the Civil Aviation Authority gave approval for ICAEW to license, register and monitor firms which perform ATOL returns work.
• Our Practice Assurance scheme provides ICAEW members working in practice with a framework of principles-based quality assurance standards. We monitor around 11,500 firms to ensure they comply with the Practice Assurance standards.
* Data is correct as at 31 December 2023.
How we work: Enable, Evaluate and Enforce
We enable ICAEW firms and ICAEW Chartered Accountants to expand the services they provide to their clients because we are authorised as regulators of audit, insolvency, investment business advice and probate work.
This requires PSD to demonstrate that it is compliant with authorisation conditions during regular inspections by oversight regulators and to comply with any new requirements and recommendations made by them.
In 2022—2023, we received positive inspection reports on the quality of work of PSD staff by the Financial Reporting Council (FRC) and the Legal Services Board (LSB).
We evaluate the quality of work and compliance with rules through monitoring.
All ICAEW-supervised/regulated firms and insolvency practitioners (IPs) are monitored by PSD’s Quality Assurance Department (QAD) to ensure they operate in accordance with laws, regulations and expected professional standards, the ICAEW Code of Ethics and the requirements of ICAEW’s Practice Assurance scheme.
Learn more about our monitoring role
We enforce through taking regulatory action when the standards we expect of ICAEW firms, IPs, members, affiliates or students are not met.
Independent regulatory and disciplinary committees review all reports produced by QAD on its monitoring visits where concerns are identified with the quality of work being carried out and/or compliance with all relevant regulations.
These committees have the power to withdraw regulatory licences or to impose conditions and/or restrictions for a specified period to see whether the regulated firm or individual can improve their performance.
Make a complaint
The Conduct Department investigates complaints referred to them by the regulatory committees (where they consider disciplinary action may be merited) and complaints which are made by members of the public, including clients or former clients. They also investigate any issues regarding the conduct of ICAEW Chartered Accountants highlighted by the media or other regulators.
If things go wrong, we can help. We act in the public interest and it is part of our role to strive to ensure ICAEW Chartered Accountants and ICAEW-regulated firms and individuals act with integrity and undertake work in accordance to laws and regulations. If your accountant is registered with us and their work falls short, you can make a complaint to ICAEW. Remember we can only get involved if the individual, student or firm is regulated by ICAEW.
Read more about how to make a complaint
Responding to consultations
As an improvement regulator, PSD will initiate and respond to consultations on issues that relate to our regulatory responsibilities. This includes specific regulatory issues or matters that relate solely to regulation. We invite the views of the ICAEW Chartered Accountants, regulated firms and individuals, consumers of accountancy services and other stakeholders.
Access regulatory consultations
Why use a regulated ICAEW Chartered Accountant
If you are seeking accountancy advice, you want to be reassured your accountant has the appropriate education, experience and qualifications to provide high-quality, independent advice and services – after all, you wouldn’t go to an unqualified or unregulated doctor for medical advice. If you select an unqualified or unregulated accountant to handle your finances or tax work, you may have nowhere to turn if there are problems with the quality of their advice, their conduct or their standards of service.
Access information on where ICAEW, ICAEW Chartered Accountants and ICAEW firms can help
To check if your accountant is an ICAEW member or the firm is supervised by ICAEW, you can use the directory.
Find an ICAEW Chartered Accountant
You can also check if there are any disciplinary decisions against a member or firm by using the ICAEW Disciplinary Database and accessing information about disciplinary hearings.
Equality, diversity and inclusion
We are committed to diversity in the chartered accountancy profession, within our regulatory and disciplinary committees and in PSD. We believe the profession, and our own organisation, does best when it reflects the society we serve.
The IRB’s terms of reference require the board to take account of inclusion and diversity in relation to its activities.
We encourage applicants from diverse backgrounds to apply for vacancies within PSD, the IRB and the regulatory and disciplinary committees and we try to promote recruitment from under-represented communities.
All probate firms are required to monitor diversity, and we report the outcome of that monitoring publicly. We will continue to focus on diversity.