The Institute’s affiliate regime has been simplified to reduce the compliance burden for firms.   From 1 September a single status of ‘affiliate’ replaces the previous multiple categories of ‘audit affiliate’, ‘investment business affiliate’, ‘general affiliate’, ‘AML affiliate’ and ‘insolvency affiliate’.    Previously an individual might hold affiliate status in more than one category but effectively have the same obligations under each category.   Furthermore, the rules regarding which principals at a firm should become affiliates have been streamlined and the overall requirement is that a principal at an Institute firm who is not a member of the Institute should be an affiliate of the Institute.  Therefore, there is no exemption from affiliate status for members of particular bodies.  This is consistent with the approach taken from January 2024 with the introduction of the affiliate requirement for all principals at Institute AML supervised firms who are not Institute members.   As a consequence of the latter, principals at a number of Institute firms have been granted affiliate status (AML affiliate status) since 1 January 2024 and therefore will not be affected by this change in the approach.  The Institute does not anticipate any notable increase in affiliate numbers overall as a result of the current streamlining.  The recent revisions to Institute regulations (1 September 2024) give effect to this simplification of affiliate provisions.    The requirements for affiliates are now set out in a single chapter in the revised Public Practice Regulations rather than across a range of Institute regulations.   Other Institute regulations now refer affiliates to the Public Practice Regulations as appropriate.  For example, a person required to become an affiliate in accordance with the revised Audit Regulations is directed to the provisions of chapter 7 of the Public Practice Regulations as regards application for affiliate status, the ongoing regulatory obligations of affiliates and liability to regulatory and disciplinary action where appropriate.   Institute affiliates: Are not entitled to describe themselves as Chartered Accountant Agree to be bound by the Charter, the Principal Bye-Laws, the Disciplinary Bye-Laws and other any other rules, regulations, codes and standards of the Institute; Are required to observe and uphold the Institute’s Code of Ethics Are subject to the Institute disciplinary arrangements where appropriate. The rules regarding affiliates at firms approved to carry out investment business activities in the UK under the Designated Professional Body Handbook are unchanged. Institute firms and compliance principals can direct any queries in relation to the revised affiliate regime to professionalstandards@charteredaccountants.ie.

Recent amendments to the Institute’s CPD Regulations have facilitated simplification of how non-PC holding members confirm compliance with CPD requirements and the Institute’s Code of Ethics. Henceforth, by paying the annual membership subscription, or permitting this to be paid on their behalf, or otherwise renewing their membership, members are acknowledging CPD and Code of Ethics compliance. As a consequence, members who do not hold a practising certificate will no longer have to submit an annual declaration (the Individual Annual Return) in respect of these matters.  Further information on the Institute’s CPD requirements can be located on our support and guidance page.  This page also sets out circumstances in which members may apply for an exemption from CPD requirements; there are no changes in this regard. Similarly, there is no change to the Institute’s current approach to substantive testing of CPD compliance whereby a sample of member CPD records is selected for review on an annual basis.  Responsible Individuals (statutory auditors) in audit firms registered by the Institute remain subject to a separate CPD compliance regime based on company law and IAASA requirements.

Further to the notice in our most recent Regulatory Bulletin regarding proposed changes to the Institute’s Professional Indemnity Insurance (PII) requirements, these changes have now been approved by the Professional Standards Board and revised Public Practice Regulations will come into effect on 1 September 2024.  The revised Public Practice Regulations will be available on the Professional Standards website from 1 September 2024. Main changes The main changes to the PII requirements are as follows: The minimum limit of indemnity will increase from €2.14m (£1.5m) to €2.34m (£2m). For firms with a gross fee income which is below €936,000 (£800,000), the minimum limit will be two and a half times the firm’s gross fee income, subject to a minimum of €290,000 (£250,000) (this is an increase from €142,000 or £100,000). Larger firms with gross fee income over €58.5m (£50m) will not be required to put in place ‘qualifying insurance’ but must have in place appropriate arrangements which will be monitored. (Currently this approach is available to firms with 50+ principals.) For firms that will be required to put qualifying insurance in place, the maximum aggregate excess should not exceed the higher of €3,500 (£3,000) or 3% of a firm’s gross fee income. Firms insuring in a group arrangement can be treated as single entity for the purposes of the regulations providing that certain criteria are met.  Firms in the structure can: (a) demonstrate common ownership, control or management; and (b) can demonstrate that they are aimed at co-operation, and (c) meet at least one or more of the following criteria: ·        the firms within the structure are clearly aimed at profit or cost sharing; ·        the firms within the structure share common quality control policies and procedures; ·        the firms within the structure share a common business strategy; ·        the firms within the structure share the use of a common brand-name; ·        the firms within the structure share a significant part of professional resources. Firms continue to be required to have run off cover in place for the first two years after cessation.  Firms should then take “all reasonable steps” to put run off cover in place for a further four years. The existing additional PII requirements for firms licensed under the Designated Professional Body Handbook or authorised by the UK Financial Conduct Authority to conduct insurance distribution activities (extant Public Practice Regulation 7.18) and firms authorised under the Investment Business Regulations (excluding firms that perform referral only business) (extant Public Practice Regulation 7.18A) continue to apply and are unchanged at this time.  Firms within the scope of 7.18A can however expect increases to the prescribed limits for policies renewing on or after 1 January 2025.  Firms will receive further information on these changes in due course. Timeline There will be a transitional period and the new requirements relating to minimum limits and excess will only apply to new policies once a firm renews its PII after 1 September 2024.  These new requirements will therefore apply to all firms from 1 September 2025.  Preparing for the changes In view of the changes, it is more important than ever for firms to engage early with their broker to identify if any changes will need to be made to the policy at next renewal, work out the relevant level of cover needed going forward, as well as carrying out the usual risk assessment. Members or firms who have any queries in relation to these changes should email professionalstandards@charteredaccountants.ie

Both Irish and UK AML legislation requires firms to take the appropriate steps to identify and assess the risk that they could be used for money laundering and terrorist financing, and in the UK, also proliferation financing. The Accountancy AML Supervisors Group (AASG) in the UK has recently updated its Risk Outlook Guidance which identifies those circumstances where there might be a high risk of money laundering, terrorist financing or proliferation financing in the accountancy sector. (Although drafted pursuant to UK AML legislation, many of the risks are also relevant in Ireland.) This Guidance has been updated to include risks associated with the following: Complex supply chains Crypto Register of Overseas Entity verification Services subject to trade sanctions Proliferation financing Contractors or agency workers paid by umbrella companies

Under the Joint Insolvency Committee’s (JIC’s) strategic work plan, Insolvency Guidance Papers (IGPs) are subject to periodic review to ensure they remain relevant to changing legislation and market conditions.  In 2024 all the IGPs are being reviewed and this notice is to advise you of the changes that have been approved by the JIC to date. Withdrawal of IGPs “Bankruptcy – The Family Home” and “Retention of Title” Following such a review, the JIC is withdrawing the Insolvency Guidance Papers entitled “Bankruptcy – The Family Home” and “Retention of Title” with effect from 1 August 2024.  These Guidance Papers were introduced in October 2005 and November 2014 respectively, but the JIC feels that the appropriate approach to both topics is now so widely accepted that separate guidance papers are no longer required. Revised IGP “Succession Planning” A revised IGP related to succession planning has been issued today by each of the Recognised Professional Bodies (RPBs) following approval by the JIC and the RPBs.  Summary of Changes – "Succession Planning” IGP The “Succession Planning” IGP has remained in place since 2005 during which time the insolvency market and profession have significantly changed.  The principal revisions to the IGP emphasise the importance of contingency planning and documentation to ensure the continuity of case management in the event that an insolvency practitioner is unable to act for one or more reasons and in different contexts including retirement, incapacity, death, loss of licence and the sale of a practice.  The revised IGP covers a variety of scenarios including sole practitioners, firms generally and firms where there are no other insolvency practitioners.   The IGP includes new sections on putting succession agreements or arrangements in place and guidance for alternates and potential alternates.  The style and language used has also been modernised to make it clearer and easier to apply. Implementation – “Succession Planning” IGP The revised IGP is published on 25 July 2024 and comes into effect on 1 August 2024.  

Members are reminded that all legal and natural persons are bound by the obligations in the sanctions. Since publication of the Guidance on Sanctions by CCAB and CCAB Ireland, we have received the following updates from the Department of Finance. This is summarised material and should be read in conjunction with the official lists and Statutory Instruments. The relevant Statutory Instruments are, or will shortly be, available on the Irish Statute Book. Further information on restrictive measures can be viewed also at: The Central Bank of Ireland D/Foreign Affairs – who also have domestic guidance on the implementation of sanctions at the bottom of that page The measures agreed at an EU level are also outlined on the EU Council website. Email Received 4 March 2022 from Department of Finance Please find below details of the most recent measures imposed on Belarus in response to its unprovoked and unjustified military aggression against Ukraine: An EU travel ban and asset freeze in respect of 22 persons associated with the Belarusian military and Ministry for Defence. These measures are imposed under the existing sanctions regime in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. Further restrictions on trade between the EU and Belarus, relating to the trade of goods used for the production or manufacturing of tobacco products, mineral fuels, bituminous substances and gaseous hydrocarbon products, potassium chloride (“potash”) products, wood products, cement products, iron and steel products and rubber products. Additional restrictions on exports of dual-use goods and technology and related services, as well as restrictions on exports of certain goods and technology which might contribute to Belarus’ military, technological, defence and security development, together with restrictions on related services. Email Received 2 March 2022 from Department of Finance Please find below details of additional measures imposed on the Russian Federation in response to its unprovoked and unjustified military aggression against Ukraine: A ban on the sale, supply, transfer or export of Euro banknotes to Russia or to any natural or legal person, entity or body in Russia is being introduced. This includes the Russian government and the Central Bank of Russia. The removal of 7 Russian banks from the SWIFT system with a 10 day lead in time. This includes any entity that the listed banks own 50% or more of. The banks affected are: Bank Otkritie Novikombank Promsvyazbank Bank Rossiya Sovcombank VNESHECONOMBANK (VEB) VTB Bank A prohibition on investing in, participating or otherwise contributing to projects co-financed by the Russian Direct Investment Fund. A prohibition on broadcasting or enabling the broadcast of state-owned media Russia Today or Sputnik in the EU.

The Institute has issued revised CPD Regulations with effect from 1 July 2024.  The minor changes to the CPD Regulations facilitate a planned simplification of the Institute's Individual Annual Return process for members. To access these regulations, please click on the link provided.

The attention of Institute firms with UK audit registration is drawn to an open consultation in relation to proposed changes to the UK Audit Regulations. The UK Audit Regulations are issued jointly by Chartered Accountants Ireland (the Institute), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).  This consultation is being hosted by ICAEW.    The consultation proposes to make changes to the UK Audit Regulations which would require UK audit registered firms to notify their registering body when they are appointed as auditors to certain entities. The consultation is available to read here.  Feedback can be provided, by 6 September, via the online consultation portal or by emailing professionalstandards@charteredaccountants.ie.

The Institute draws the attention of members and firms to proposed changes to the Institute’s PII requirements. PII arrangements are developed jointly by the Institute, the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland, and the three chartered bodies have participated in a review of these joint PII arrangements, led by ICAEW. Institute members and firms will be aware of this review, which included a public consultation that members and firms were invited to participate in. The main proposed changes to the PII requirements which are being considered by the Institute’s Professional Standards Board following that review, are: The minimum limit of indemnity will increase from £1.5m to £2m. For firms with a gross fee income which is below £800,000, the minimum limit will be two and a half times the firm’s gross fee income, subject to a minimum of £250,000 (this is an increase from £100,000). Larger firms with gross fee income over £50m will not be required to put in place ‘qualifying insurance’ but must have in place appropriate arrangements which will be monitored. (Currently this approach is available to firms with 50+ principals.) For firms that will be required to put qualifying insurance in place, the maximum aggregate excess should not exceed the higher of £3,000 or 3% of a firm’s gross fee income. (And euro equivalents). The Institute’s current PII requirements are set out in Chapter 7 of the Public Practice Regulations.  Any decided changes to the Institute’s PII requirements will be reflected in updated versions of same, which will be made available to members and firms through the usual channels in due course. However, as the principles have the support of the Professional Standards Board, in the interest of giving Institute members and firms timely notice of these proposed changes we are providing you with this information at this stage. If approved, the changes are likely to be effective from 1 September 2024, and apply to policies taken out or renewed from that date. Institute members and firms may wish to check with your PII provider whether any of the proposed changes will impact your policy, and ensure you leave sufficient time to prepare for your renewal this year. Members or firms who have any queries in relation to these proposed changes can contact the Institute at professionalstandards@charteredaccountants.ie. Further information on the review of the PII arrangements is available on the ICAEW website here.

The Money Laundering and Terrorist Financing (Amendment) Regulations 2023 came into force on 10 January 2024. The legislation now provides that a domestic politically exposed person (PEP) has a lower starting point for risk than a non-domestic PEP (foreign PEP) and if no enhanced risk factors are present, the extent of customer due diligence for a domestic PEP should be lower than a foreign PEP.

New Information Sharing Measures within the Economic Crime and Corporate Transparency (ECCT) Act (section 188-193) came into force, as of the 15th of January 2024.    These new measures will make it easier for relevant businesses to share customer information with each other for the purposes of preventing, investigating, and detecting economic crime by disapplying civil liability including for breaches of confidentiality where information is shared for this purpose.    The UK Government is currently developing guidance to assist firms and promote a consistent approach. We will share this guidance as soon as available. 

HM Treasury has published a consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the ‘MLRs’). HM Treasury committed to consulting on changes to the MLRs as part of a wider programme of work aimed at reducing money laundering, which was set out in the Economic Crime Plan 2023-26. The consultation covers four core themes: Making customer due diligence more proportionate and effective Strengthening system coordination Providing clarity on scope of the MLRs Reforming registration requirements for the Trust Registration Service. The Professional Standards Department will be submitting a response.

Our colleagues in Advocacy & Voice have published a short guide on the UK’s Economic Crime and Corporate Transparency Act 2023.The guide details some of the changes which will be brought about by the Act. We will be providing further updates as the various sections within the Act come into force.

The National Crime Agency has issued a new Amber Alert which highlights the sanctions evasion and money laundering risks presented to UK industries linked to the art storage sector, and to serve as a reminder on due diligence checks and reporting obligations. This Alert focuses on UK artwork storage facilities, the UK specialist service providers that are linked to the art storage sector and the clients that utilise these art storage facilities.

The National Crime Agency has issued a new Red Alert providing information on the common techniques sanctioned individuals and entities, and their enablers, are suspected to be using to evade sanctions relating to gold.

The Regulatory fee invoices for 2024 are available online at the Myaccount portal of the website.  Remittance should be made by 31 March 2024. If you require a copy invoice to be emailed, please email Sandra Smiley, quoting your individual/firm ID.  Need assistance? Please email Sandra Smiley with your name and member/firm ID along with the query or changes required. We will issue a revised invoice if this is appropriate.

Companies House has recently hosted a webinar titled ‘Get ready for changes to UK Company Law’. This webinar is a summary of upcoming changes introduced by the Economic Crime and Corporate Transparency Act 2023 (legislation.gov.uk) Click Companies House webinars - GOV.UK (www.gov.uk)  and scroll down to register to access the recording. Summary of key changes Changes will be introduced in a phased approach over the next few years. The first set of changes are effective 4 March 2024 and include: New rules for registered office addresses PO Box may not be used as an appropriate address. New requirement to provide a registered email address: New companies will be asked to provide this upon incorporation. Existing companies will need to provide their registered email address when they file their next confirmation statement. Lawful purpose statement Shareholders of new companies will be required to make this statement upon incorporation. Existing companies will make their lawful purpose statement in next confirmation statement. Companies House Registrars will have greater powers to query and challenge information. Future Changes Companies House Fees will increase from 1st May 2024. Streamlining accounts filing options for small and micro entity companies Software only filing. Making limited partnership information more accessible and transparent Enhance protection for personal information to protect individuals. Guidance The UK Government has developed a website providing helpful information on the various changes to UK company law being introduced over the next few years. Changes to UK company law - Changes to UK company law

The National Crime Agency has issued a new Red Alert warning UK businesses on the common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. These ‘high-risk goods’ refers to Western items critical to Russian weapons systems and its military development. The Red Alert lists the common risk indicators in this area that the regulated sector should be aware of.

The Economic Crime (Transparency and Enforcement) Act 2022 created the Register of Overseas Entities (ROE). It requires overseas entities owning UK property to reveal their beneficial owners and to register their entities on a publicly available register.   Information must be verified before an overseas entity makes an application for registration, complies with the updating duty or makes an application for removal. The Register of Overseas Entities (Verification and Provision of Information ) Regulations 2022 (SI 2022/725) set out the details of the verification system. The drafting of the Verification Regulations means that there is a strict liability in place and the accountancy professional body supervisors are concerned that any firm acting as a verifier will face significant challenges and expose itself to significant risk, including possible criminal prosecution, regulatory sanction, and reputational damage. Firms should carefully consider whether they should provide this verification work. The work required for verification under the ROE is not the same as the risk-based approach to client due diligence under Money Laundering Regulations 2017 and firms should familiarise themselves with the differences. The Government has produced further Guidance to assist. The Accountancy AML Supervisors Group (AASG) published an AML Alert highlighting key risks associated with this work. The Institute has previously shared this AASG AML Alert on ROE-Verification work with the MLCPs and MLROs but would highlight again the risks associated with this verification work.

This Alert is produced by the UK National Economic Crime Centre (NECC) to highlight the high-risk behaviours and typologies associated with the Trust and Company Service Provider (TCSP) sector. Although this Alert is produced in conjunction with law enforcement and financial sector partners in the UK, many of the risk indicators will also be relevant in Ireland. We would encourage regulated businesses to read this Alert. Professional Standards also published its TCSP Thematic Review earlier in the year. This document summarised the responses to a detailed Questionnaire issued to a sample of firms based in Northern Ireland. The majority of firms only provide TCSP services such as company formation / registered office and only provide such services to existing clients alongside other ancillary accountancy services (e.g. statutory audit, tax and accounts preparation).

The Professional Standards 36th edition of the Regulatory Bulletin has now been published.  Please click on the link provided to access this publication.