Revised Public Practice Regulations – effective 1 January 2024
The Institute has issued revised Public Practice Regulations with effect from 1 January 2024. Institute members engaged in public practice comply with the Public Practice Regulations.
Key revisions are summarised below:
Anti-money laundering (AML) supervision:
The revised Public Practice Regulations include explicit reference to the Institute’s role as AML supervisor for practising firms. While firms are familiar with AML supervision and already engage with the Institute in this regard, the revised Public Practice Regulations introduce some new regulatory obligations in this regard. In particular, the revised Public Practice Regulations:
- Include a new chapter addressing AML supervision;
- Define an ‘AML supervised firm’;
- Require an AML supervised firm to ensure that each of the firm’s principals is either a member of the Institute or has been granted AML affiliate status by 1 January 2025. During 2024 the Institute will engage with the Money Laundering Compliance Principals at AML supervised firms to facilitate compliance with this requirement;
- Require all AML supervised firms to make a declaration, on behalf of the firm, acknowledging the firm’s obligations under Institute Bye-Laws and Regulations and AML legislation.This declaration will be sought as part of the firm annual return process going forward;
- Include explicit ongoing fit and proper requirements for beneficial owners, principals and relevant managers at AML supervised firms.
Professional indemnity insurance (PII) requirements for authorised investment business firms, Ireland
Regulation 7.18A of the Public Practice Regulations reflects a new Central Bank of Ireland requirement for firms authorised by the Institute for investment business (IB) to have specific minimum professional indemnity insurance (PII) which is ringfenced for IB claims. The Institute has written directly to the IB compliance principals outlining the revised PII requirements. This topic is covered in more detail in the August edition of the Professional Standards Regulatory Bulletin.
Simplified regime for potential ‘dual- PC’ holders
Chapter 5 of the revised Public Practice Regulations provides that an Institute member engaged in public practice is exempt from the requirement to hold an Institute practising certificate (PC) where that individual is a member of, and holds a PC from, another specified accountancy body. While these dual-membership cases are infrequent, the revised approach streamlines regulatory processes between the accountancy bodies, simplifies compliance for individuals and minimises the risk of regulatory gaps or duplication.
Institute PC regime applies only to Ireland and the UK
The definition of practising certificate has been revised to state that the Institute’s PC regime applies only to public practice in Ireland and the UK. This is a clarification and not a change to the Institute’s PC regime. Where members engage in public practice in jurisdictions other than Ireland or the UK the member complies with any local requirements regarding public practice in that jurisdiction.
Guidance:
Revised Public Practice Regulations Guidance is available on the Institute’s website.
Previous editions:
The revised Public Practice Regulations replace the previous edition of the Public Practice Regulations which remain available to read in the Institute’s online archive of Regulations.
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