Chapter 5-10 Flashcards
What must be obtained before subcontracting work?
The clients consent OR include a clause in the engagement letter so dont need to get their consent each time
What should advice generally be given in?
writing
What should advice communication normally include?
purpose, backgound/facts, alternatives, risks, caveats and exclusions
Three choices when acting for two parties on the same matter (i.e divorce)
only act for one client, to act for both clients, to act for neither party
Conditions to continue to act for both parties?
must disclose the facts to both parties, the conflict can be managed, dont preference one client, clients must agree in writing that the member can act for both of them.
When can confidential information be released without obtaining the clients consent?
if necessary for the administration of justice, e.g to deferend themselves in disciplinary heardings
what should a member make sure?
that they do not inadvertently assume a duty of care towards the third party-include limitations of scope, that advice prepared only with clients interests in mind etc
if they do owe a third party duty of care?
should have an engagement letter/contractual arrangement with the third party
if other professional advisors are involved in an engagement?
must record it in the letter of engagement. also should get client permission to speak to the other adviser directly
if a member is a subcontractor?
need written agreements with the ‘lead adviser’ (the ‘lead’ remains responsible for the client and the services). needs to consider AML and PII
where must clients money be kept?
in an account separate from money belonging to the firm-must include the word client in the account name (can be kept in a general client account or separate accounts for each client)
what must notice to bank-in respect of client accounts-say?
must make it clear that it is client money, interest needs to go to that account, bank must awknowledge it in writing
when must an individual account for a specific client defo be set up?
if money for client of over 10k will be held for more than 30 days
when can money in a client account be withdrawn
when advised so by client in writing
how often must client accounts be reconciled
at least 6 monthly intervals and records of the reconciliation must be kept for 6 yrs
When can we appear before FTT or UT for a client
with the authorisation of the client-but should consider if need to seek a lawyer etc, espeically if tax evasion involved. MUST MAKE SURE ALL THE FACTS ARE WELL PRESENTED
what could contingent fees be deemed to be?
a premium fund under DOTAS
if member is going to get a commission due to advice given to client?
must advise client of this, as well as the amount of commission which will be received etc-should be detailed in LOE
how should a retainer arrangement be set out?
in writing, LOE should make further charges to be levied clear, should also include termination arrangements in the LOE
when should a member think about VAT?
ensure accounted for properly when there have been payments on account/advanced payments
how should complaints be acknowledged?
properly in writing
what is the TDB independent of?
CIOT and ATT
what should be included in a letter of disengagement?
summary of services provided to date, note of any further action needed, note of any outstanding matters, details of impending deadlines/actions required, members willingness to resolve outstanding issues/provide copy papers to new advisers, details of outstanding fees, note indicating whether a member or their successor is to advise HMRC of the change
what do professional reasons not to take on a new client relate to?
ethics and integrity NOT to disputes over fees/deterioration of relationship
