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Failing to respond to correspondence could result in an appearance before ACCA’s Disciplinary Committee. Juliana Campbell offers some advice on avoiding such a scenario, together with the potential consequences.

ACCA’s Disciplinary Committee considers alleged breaches of ACCA’s bye-laws and regulations. One of the most common complaints considered by the Disciplinary Committee is that a member has failed to respond to correspondence.

Complaints of this nature fall into two categories:

• the first is a failure to respond to professional correspondence from clients and other third parties. These types of complaint show that one of the reasons for the failure to respond can be related to pressure of work. This is especially so in the period prior to the deadline for the filing of self-assessment tax returns. However, it is far more common that the failure to respond is related to a breakdown in the relationship with the client. In such cases a complaint that the member has not responded to correspondence is usually accompanied by a complaint regarding fees or the level of service provided
• the second is a failure to respond to correspondence from ACCA on regulatory matters, such as monitoring, practising certificate issues and professional conduct.

Professional Correspondence
Members are under an obligation to respond to professional correspondence in a prompt and adequate manner.
A failure to respond can take three forms:

Delay
A delay in responding to correspondence must be significant to give rise to a finding of misconduct. The Professional Conduct Department, which undertakes the investigation of complaints, will usually get involved if a member has failed to respond within two months of the receipt of a letter. If the period of delay is less than two months the member is usually contacted, informed of the complaint and asked to respond to the complainant’s letter. This gives the member an opportunity to resolve the matter without the further involvement of the Professional Conduct Department.

If there is to be a delay in responding to correspondence, it is best to inform the client/third party giving the reason for the delay and the date by which you expect to respond.

Adequacy
This arises where there is a failure to fully and properly address the issues raised in the correspondence. Complaints regarding the adequacy of response are often linked to a request for a breakdown of fees, request for the return of documents and the provision of professional clearance/transfer information.

A member is required to provide a client with a breakdown of fees, if requested to do so. The breakdown should provide sufficient detail to enable the client to understand the invoice presented. This could include details of the hourly rate(s), the time spent on the matter and details of the actual work undertaken. Further information regarding the position of fees can be found under “Fees”, in section 3.3.9 of the current Rulebook.

Members are under an obligation to respond to requests for professional clearance and transfer information. Professional clearance and transfer information must be provided even where there are outstanding fees. Information regarding the giving of professional clearance and transfer information can be found under “Changes in Professional Appointments”, (section 3.3.5 of the current Rulebook).

Documents falling outside of the definition of transfer information can be the subject of a lien. However, members must take steps to comply with the conditions for the exercise of a lien, which can be found under “Ownership of, and rights of access to, documents and papers” (section 3.3.6 of the current Rulebook).

Failure to Respond at All
The reason(s) for a member’s complete failure to respond may be as simple as a change of address, which means that the member is unaware of the correspondence. As a result it is important that members advise ACCA of any change of address or contact details (see Membership Regulation 4(5) of the current Rulebook).

There is a variety of other reasons why a member may fail to respond to correspondence. Some of these include ill health, pressures of work and a failure to appreciate the importance of responding.

This is usually the type of case where the Disciplinary Committee may consider excluding a member. The lack of response means that the issues raised cannot be resolved and it can serve to bring the member, ACCA and the accountancy profession into disrepute.

It is important that consideration is given to the applicable bye-laws and regulations, which members agree to be bound by. If you are unsure of the approach to adopt, advice can be obtained from ACCA’s Technical Advisory Service on 020 7396 5920.

This may avoid the breakdown in the relationship with the client resulting in a complaint to the Professional Conduct Department and the possibility of a referral of the matter to the Disciplinary Committee.

ACCA Correspondence
Members are under an obligation to comply with requests for information made by ACCA where they relate to regulatory functions and responsibilities. The information is requested so that ACCA can fulfil its obligations as a regulatory body.

Members will receive several letters, some sent by recorded delivery, warning them that a failure to respond is considered to be a serious matter. If an adequate response is received the matter is dealt with through ACCA’s disciplinary procedures.

The Disciplinary Committee takes the view that a failure to respond which affects ACCA’s ability to comply with its obligations as a regulatory body are serious. The failure undermines the system of self-regulation that exists within the accountancy profession.

Juliana Campbell – Head of Professional Conduct, ACCA

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