Chapter 13 PRPG: Members in employment – Professional Practice Flashcards
13.1 Application of professional rules and practice guidelines
PRPG applies to a member employed in a professional practice whether or not their employer is a member of CIOT/ATT. The responsibilities of PII, AML registration and systems are on the employer.
13.2 Situations contrary to professional standards or law/regulations
There may be times when a member is it a situation that threatens compliance with PRPG, by being under pressure to act against professional standards and act contrary to law/regulation. In such situations an employee should establish the facts and identify the affected parties to have a clear understanding of the situation. They should:
• raise concern internally at the appropriate level. The discussions should be noted down
• consider whether they need to make a report to their employer’s money laundering reporting officer (MLRO)
• if possible, disassociate themselves
• explore external routes, contacting the Independent Charity, Public Concern at Work, they offer advice protected by the Public Interest Disclosure Act 1998 or seek legal advice
13.3 Employees’ legal exposure
An employee can be sued jointly or severally with their employer. If this occurs, they should:
• see if they are suitably protected in their employment contract
• see if a clause in the engagement letter states the client can only sue the firm
• their employer has adequate indemnity insurance
It is possible for an employee to be sued by their employer, see legal advice if this occurs.
13.4 Personal work
If an employed member provides tax services on a paid basis (other than through their employer) they should comply with relevant PII and AML obligations and that they can undertake work outside their employment under the terms in their contract.
