CH10- Ceasing to act

Question 1

Should not cease to act until

Answer 1

Work is completed
Legal or professional obligation (e.g. criminal activity)
Client requires it
Member gives reasonable notice (reasonable depends on circumstances)

Question 2

Letter of disengagement

Answer 2

STRONGLY RECOMMENDED
Should address the following:
Summary of services provided up to date of ceasing to act
Note of further action to be taken
Outstanding matters which will need to be addressed by the client or new advisor
Details of any impending deadlines and action to be taken
Members willingness to assist new advisers to resolve outstanding queries with HMRC and provide copies of papers
Outstanding fee details
Details as to who is to advise HMRC of change

Question 3

Communication from successor

Answer 3

On receipt of a communication from successor, need to obtain authority from client to respond
If authority not provided, state clearance cannot be given
If authority provided, state no reasons to why appointment should not be accepted, or resigned for professional reasons

Question 4

Professional reasons

Answer 4

Relate to issues as ethics and integrity, not matters such as fees or other disputes

Question 5

Client or new advisor requests relevant papers from member

Answer 5

Need to consider following:
Clients written consent should be obtained
Consult with professional indemnity insurers or take legal advice if risk that client will use info in support of a claim against member
Consider ownership of documents- if belong to client, exercise right of lien
Take photocopies of any documents provided and consider own document retention requirements
If documents belong to member, member should still co-operate in terms of handing over copies
May need to take legal advice if unsure of ownership

Question 6

After ceasing to act

Answer 6

If after ceasing to act the member receives any correspondence from client, correspondence should be forwarded without undue delay and sender should be given address to all future correspondence direct to client

Question 7

Forwarding documents

Answer 7

Can pass copies of documents on to client and new advisor

Question 8

Who to inform about ceasing to act

Answer 8

Client before ceasing to act

HMRC after ceasing to act