Council regulations for Members in Practice

Members of CIMA who are considering moving into practice work should be aware that they must conform with a number of regulations governing their activities. This is because while in business, industry or the public sector, legislation and company regulations control your activities, as a sole trader or small partnership the environment is often very different. CIMA has a responsibility, in the public interest and to the regulators, as well as for your own protection and best working practice, to exert some control over that environment, and for that reason these Council Regulations have been placed before, and agreed by, the relevant Committee and your Council. Please note that we recognise that sole traders in particular may struggle with some of these requirements, and if you are unable to find useful advice on this site, CIMA Professional Standards Department (professional.standards@cimaglobal.com) welcomes enquiries and will do its best to respond constructively.

Council Regulation 7

7  Members in Practice (Byelaws 51 and 52)

7.1 A Member in Practice is a Member offering any accounting services to a person who is not their employer, and shall include

(i) a Member in Practice who is registered by the Institute as a Provisional Member in Practice; and
(ii) a Member in Practice who holds a Practising Certificate issued by the Institute.

7.1.1  ‘accounting services’ includes advice and services in connection with

(i) financial and management accounting;
(ii) book-keeping and accounting records;
(iii) the provision of tax returns, the computation or other matters of direct and indirect taxation (including DSS contributions);
(iv) budgets, forecasts, cash flows, and business plans;
(v) funding to businesses;
(vi) company secretarial matters; and
(vii) accounting systems and management reporting.

7.1.2 The following shall not be regarded as ‘accounting services’:

(i) services concerned with human resources, law, marketing, sales, project management, production, research and development, training and any non-financial consultancy, unless such services are provided as an integral part of a service falling within 7.1.1;
(ii) sub-contract services to accountants where the firm of accountants is invoiced directly for such services;
(iii) services under a contract through an agency supplying accountancy services where the agency is invoiced directly for such services;
(iv) services provided under a contract of employment or service;
(v) services regulated by the Financial Services and Markets Act 2000 or the Insolvency Act 1986; and
(vi) services to clubs, societies, charities or similar organisations on an honorarium or pro bono basis.

7.2 All Members in Practice must register with the Institute and Provisional Members in Practice must apply for a Practising Certificate after one year and within three years of registration, unless the Professional Standards Committee determines otherwise in any particular case. The Institute shall give guidance to unsuccessful applicants as to how to gain relevant skills and experience.

7.3  Every applicant for the Practising Certificate shall satisfy a Panel of Assessors that he has had not less than one year's experience satisfactory to the Panel.

7.4  Every application for registration as a Member in Practice shall be accompanied by the prescribed annual fee, subsequent annual fees being due and payable on the first day of January each year, provided that the first payment of the fee becoming due on or after 2 September in any one year shall be deemed to include the whole of the annual fee for the following year.

7.5.1 Members in Practice either directly, or through their partnership or company, are required to:

(i) hold an appropriate level of professional indemnity insurance;
(ii) provide written terms of engagement for clients;
(iii) ensure continuity of the work of their practice in the event of illness, disability, or death;
(iv) undertake continuing professional development in accordance with the requirements of the Institute; and
(v) make provision for internal complaints handling procedures;

and are required to provide confirmation of the above on registration and renewal of registration, and evidence of the above when applying for the Practising Certificate.

7.5.2 The requirements on Council Regulation 7.5.1 may where appropriate be discharged on behalf of a Member in Practice by his/her partnership or company provided that, if such requirements are not so discharged, the Member in Practice shall remain personally liable in respect of any disciplinary proceedings arising from non-compliance.

7.5.3 The Institute may operate a "practice assurance" scheme which may include procedures for monitoring and enforcing compliance with the provisions of these regulations.

7.6 Members in Practice are encouraged also to make provision for comprehensive partnership agreements (where appropriate).

7.7 The Disciplinary Committee may suspend or cancel the registration of a Member in Practice or withdraw a Practising Certificate.

7.8 A Practising Certificate shall remain the property of the Institute and must be returned if withdrawn under 7.7 or when a holder ceases to be registered as a Member in Practice.

7.9 There shall be no other privileges or qualifying description afforded to a holder of the Practising Certificate, except that his name shall be shown as such in the list of Members, on any separate lists specific to holders of the Practising Certificate, and that he shall have the use of the Institute’s logo, as adapted for Practising Certificate holders, subject to his agreement to the terms of a specific licence agreement.

7.10 Any Member found to be providing accounting services to clients whilst not registered as a Member in Practice and who fails to register after having been asked to do so shall be liable to disciplinary action by the Institute.