Members in Employment - Professional Practice

Question 1

What is the first step to take when you suspect that you are being asked to act unlawfully in the workplace?

Answer 1

Seek a clear understanding of the situation as far as possible

Question 2

What are the risks of being permitted to sign letters to client’s on your employer’s behalf?

Answer 2

Subject to the content of the engagement letter, you could be jointly or severally sued with your employer

You should check whether your employment contract offers legal protection

Question 3

For a member that was previously self employed, but is not employed by a firm, how do the rules apply?

Answer 3

You must follow the rules exactly the same as when you were self employed. Employment does not change duty to adhere to ATT/CTA rules

Question 4

You are an employee and suspect that someone in your firm has committed an unlawful act. What should you do?

Answer 4

1. Try to establish the facts and the affected parties
2. Speak to their line manager
3. Consider whether you need to report to the firm’s MLRO
4. Resign from employment

Question 5

Who should you speak to if you believe another employee has committed assault?

Answer 5

Their line manager

Question 6

One of your clients has brought a lawsuit against you, what is your exposure to potential liability?

Answer 6

You can be jointly and severally liable with your employer

Question 7

What are you not expected to do as an employee in respect of action that may be brought against you in the course of your employment?

Answer 7

You do not need your own professional indemnity insurance

Question 8

True or false, it is compulsory for all members in employment in the C and I sector to comply with UK AML legislation?

Answer 8

True

Question 9

True or false, members in the C and I sector must have adequate PII?

Answer 9

False

Question 10

What should you not do if you have concerns about work you have been asked to do by your employer?

Answer 10

Immediately cease your employment

Question 11

You are employed in the CI sector, what level of PII are you required to have?

Answer 11

You are not required to have PII

Question 12

You are an employed CTA, what should you comply with?

Answer 12

The fundamental principles and members’ obligations in chapter 2 of the PRPG, but you do not need PII.

Question 13

What is the first thing you should do if you think someone in your company has committed an unlawful act (CI Sector)?

Answer 13

Refer to the commerce and industry guidance on the CIOT website

Question 14

You learn that your company’s CT return was incorrect, resulting in an underpayment by the company, what should you do initially? (CI sector)

Answer 14

Refer to commerce and industry guidance on the CIOT website
Explore available external routes such as contacting the independent charity Public Concern at Work

Question 15

You provide a tax service through your employer and are self-employed outside of work, how do the AML obligations differ?

Answer 15

You are obliged to comply with AML obligations for the tax services provide through your employer and those provided privately

Question 16

You are employed by a bank, your employer is not a member of the CIOT or ATT, which guidelines in the PRPG apply to you?

Answer 16

The guidelines for employed members in ‘other’ employment

Question 17

You work for a large insurance company, what are you obliged to comply with in respect of the PRPG?

Answer 17

The fundamental principles
Chapter 2
Aml legislation

Question 18

You are providing self employed tax advice, what obligations should you comply with in the PRPG?

Answer 18

AML and PII