The Insolvency Service GB has published the long awaited Consultation: The Future of Insolvency Regulation. This paper consults on proposals to strengthen the insolvency regulatory framework. The Government’s preferred option is to create a Single Regulator to replace the four authorising bodies (CAI, ICAS, ICAEW, IPA). In addition, the Government is also recommending the regulation of firms and not just individual Insolvency Practitioners in certain circumstances. The proposed new regulatory model would apply to England, Scotland and Wales. Insolvency, including regulation of insolvency, is a transferred function in Northern Ireland, although there is close alignment of the insolvency and regulatory frameworks between Great Britain and Northern Ireland. However, the document states that the Government will liaise closely with the Northern Ireland Executive to consider the impact of the reforms in Northern Ireland. The Institute will be responding to this Consultation with responses to be submitted by 25 March 2022. For more information see The future of insolvency regulation - GOV.UK (www.gov.uk).

From 22 December 2021 the Institute of Chartered Accountants of Scotland (‘ICAS’) is no longer a recognised accountancy body (RAB) in Ireland.  As notified to Institute members and firms in recent news items and in direct communication to audit compliance principals, the revocation of ICAS’s RAB status will have implications for Institute registered audit firms who include ICAS members amongst the firm’s responsible individuals (RIs) or amongst the qualified majority of owners and management board members of the audit firm.  Firms have been advised of the appropriate actions to take in this regard.  Such actions include relevant individuals applying for reciprocal membership of the Institute. The revocation of the recognition of ICAS as a RAB follows on the derecognition of the Institute of Chartered Accountants in England and Wales (‘ICAEW’) on 21 July 2021.  The issues arising for ICAEW members at Institute firms from that time are the same as those arising now for ICAS members. It has been necessary to amend the Institute’s Audit Regulations and Guidance (effective 1 January 2020) (‘the Audit Regulations – Ireland’) to reflect the fact that ICAEW and ICAS ceased to be RABs on 21 July 2021 and 22 December 2021 respectively.  This amendment has been made by way of an addendum to the Audit Regulations – Ireland (‘The December Addendum). The December Addendum includes amendment to the definitions of ‘Institute’, ‘appropriate qualification’, ‘audit affiliate’ and ‘practising certificate’ and clarifies a reference in guidance to the eligibility of reciprocal members for audit registration. The December Addendum is effective from 22 December 2021 and is to be read in conjunction with the Audit Regulations - Ireland. The December Addendum supersedes a similar addendum, now withdrawn, which was issued to reflect the derecognition of ICAEW as a RAB in July 2021. The Addendum and the Audit Regulations -Ireland, which are to be read together, are available on the Institute’s website. In addition, the Institute’s Public Practice Regulations have been amended with effect from 22 December 2021 to provide clarity in relation the requirements for practising certificates (‘PCs’) for reciprocal members who are also members of ICAEW or ICAS and hold a PC from ICAEW or ICAS respectively.  The change has been made at Regulation 5.2A of the Public Practice Regulations which are available to read on the Institute’s website.

Professional Standards has published its first Report on UK AML Supervision. This covers the period April 2020 – April 2021.