Assorted questions Flashcards
What does Fidelity guarentee insurance cover?
Covers money held in trust against partners,directors and employees
What issues should you take into account when liability capping? (3)
- No engagement letter
- without an EL, there will be no mention of a liability cap in the first place - Work not covered
- Claim by a third party
What is the level of excess for liability per principle?
£20,000 per principle
How long should ‘records relating to the CDD, business relationship and occasional transactions’ be kept for?
5 years at the end of the business relationship.
According to 2017 Regulations, how should records be kept?
There is no specified medium as to how records should be kept. They should just be readily retrievable.
Who should need to recieve MLTF training?
All ‘Relevant employees’ and those who the firm feel need to receive it
When should a member seek a second opinion? (2)
- When the tax at stake is significant
2. When it is of suffiecient importance to the client
What are the 4 reasons why a member should maintain proper professional records of all their dealings with a client?
- Defend themselves from a claim against them
- Sufficient evidence for if there are any complaints
- Communicate effectively (with HMRC)
- Their colleagues and successors can access a record of the client history (if necessary)
What 2 facts must be established in regard to contigent fees
- Must remember to disclose tax avoidance schemes
2. HMRC may regard contingent fees to affecting a member’s independence
What are the general principles to advertisements or promotional material? (6)
- Reflect adversly on CIOT/ATT
- Discredit the services offered by others
- Amount to HARASSMENT
- MISLEADING
- Comply with regulatory/legislative requirements such as Advertising Standards Authority Code
- Breach client confidentiality
If you are providing tax services free of charge to your father, do you need to comply with PII?
No. As you are providing tax services free of charge (in your personal capacity) you do not need PII.
If you do pro bono work, do you need to comply with AML obligations?
No, not in the course of business
If you do honorary work, do you need to comply with AML and PII obligations?
Yes to AML.
If annual honorary income is > £1000 annually, you need to comply with PII.
Do honorary members have to take CPD?
Honorary members are exempt from CPD UNLESS they fall into regulation 1.2.1
Regulation 1.2.1 - provide tax compliance services, advice, consultancy or guidance in tax including, without limitation, those in private practice, the public sector, commerce, industry or not for profit sector.
What form must you document your CPD records?
There is no prescribed form for document CPD plan and records.
If CIOT or ATT request the member’s CPD records, they should be able to deliver it.
