PRPG Practice and Governance Flashcards
In terms of business structure, what is a member recommended to have?
A memorandum of understanding or other governing document setting out the basis on which their business will be conducted and any arrangements between principals
What are the rules for practice name?
A firm’s name must comply with partnership and company law as appropriate and should not convey an unprofessional image. It should not be misleading.
What are the rules for the practices’ brand?
Must comply with legal requirements as to names of partners, principals and other partnerships.
Must comply with the practising designations of guidelines.
Should not advertise any specialist service unless the firm has the relevant expertise.
Should be of a suitable professional standard.
What are the rules surrounding temporary incapacity of a sole practitioner?
- Need suitable arrangements to ensure the firm can continue in the event of illness or temporary incapacity
- Absence of contingency arrangements can prejudice clients
- Need sufficient resources in the event of temporary absence
- Need to ensure locums have sufficient experience and expertise
What are the rules regarding death or permanent incapacity of a sole practitioner?
A member should ensure there are suitable arrangements in place for the future management of their firm
Should be set out in a written agreement
Recommended to consult a lawyer and grant power of attorney where appropriate
What should a member have in place to ensure the continuity of a business in the event of a serious incident such as fire, flood, major IT system or security failure?
A business continuity plan to ensure client service can continue
What are the rules for dissolution or merger or practice?
A merger of two or more practices or the dissolution of a practice should normally be notified to all clients and if appropriate, give them the opportunity of deciding whether they wish to continue to instruct the newly constituted practice
What are the rules for cessation of practice?
Liability in respect of services provided whilst acting for a client continues after a member has ceased to practice and continuing professional indemnity must be arranged in accordance with CIOT and ATT PII regulations.
What are regulated investment business activities?
Concerns activities defined in the Financial Services and Markets Act 2000 and the Financial Services and Markets Act 2000 (Regulated activities) order 2001
Regulated activities include investment and pension advice, advice on general (non investment) insurance contracts and establishing, operating or winding up an investment scheme or personal pension scheme
Does membership of the CIOT or ATT alone give authority to provide regulated investment business activities?
No, must be with a firm which is either authorised by the FCA or a member of a designated professional body. Yhe CIOT and ATT are not DPBs for investment purposes.
What are two implications of a cessation of a partnership and the partners to start practicing as sole practitioners?
New engagement letters are likely to be needed
If appropriate, clients should be given the chance to choose whether they want to be dealt with by either one of the advisers in the future
What are two implications of a cessation of a partnership and the partners to start practicing as sole practitioners?
New engagement letters are likely to be needed
If appropriate, clients should be given the chance to choose whether they want to be dealt with by either one of the advisers in the future
What happens in respect of a member’s liability for services provided to a client after they have ceased to practice?
Liability continues even if the member has ceased to practice
If a member is fully qualified actuary and authorised and registered with FCA as an approved person, in what instance can she provide advice on how to invest some surplus company funds?
If she is a ember of the institute and faculty of actuaries which belongs to a designated professional body
If she feels competent to do so
Are the Law Society (England and Wales) and the Institute of Chartered Accountants in England and Wales DPBs?
Yes
