Continuity arrangements

Why is an arrangement for continuity of practice work mandatory for CIMA’s Members in Practice?

As a practitioner, you have a professional obligation to your clients to ensure that the practice operates effectively and that work you undertake directly is properly conducted.

Where you are unable to conduct the work of your practice, because of illness, incapacity over a long period of time, or death, you still have a particular obligation to your client.

CIMA believes that it is ethically sound that an appropriate arrangement for continuity of practice work should protect the client’s interests in any of these particular circumstances.

Practice cover

The main reason for such an arrangement is emergency practice cover. 

However, while the client's interests are a prime consideration, they are not the only issue. In the event of your illness, incapacity or death, an appropriate arrangement for the continuity of practice can also remove anxiety for your dependants – chiefly the responsibility of dealing with the client's affairs at a time when emotionally they may be ill equipped to cope.

A continuity agreement should not be entered into lightly by any party. The implications and responsibilities must be carefully thought out by all signatories and their ability to carry out these duties considered. CIMA suggest that all parties to the agreement ask themselves 'what if?' in order to highlight any possible future problems. In doing so, a realistic and effective continuity agreement will be made.

Practice integrity

All Members in Practice must hold a continuity agreement as it will:

• be in the interests of your clients
• ensure best practice
• maintain the reputation of CIMA Member's in Practice
• ensure you are meeting the needs of the public interest.

The only exception to this requirement will be members working on short-term projects, providing this is made clear in their terms of engagement and has been agreed with CIMA’s Professional Standards Department. However, no exceptions can be granted to Practising Certificate holders.

Council Regulation 7.5.1

Council Regulation 7.5.1 states:

'Members are required to conduct themselves in accordance with the Laws of the Institute and 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 provisions for internal complaints handling procedures in their practice;

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.'

Choosing an alternate

An alternate is a practitioner or practice capable of operating in your stead and with whom a continuity agreement has been made.  When choosing an alternate you must:

• determine whether they are professionally capable of undertaking any/all of your practice work
• establish that the prospective alternate is independent of your clients and therefore capable of operating without a conflict of interest arising
• ensure that the nature of the obligations to be assumed by the prospective alternate, as well as the circumstance necessary, have been fully discussed and agreed.

Clearly, you will wish to choose an alternate who represents the best possible fit with your practice, and at the same time be assured of their total integrity. It follows that the alternate will be likely to be professionally qualified in accountancy, or a provider of professional accountancy services. However, the overriding requirement is that the alternate is capable of undertaking the practice work involved.

You may need to establish an arrangement for the continuity of practice with more than one alternate. The diversity of the work of your practice will determine whether or not this is the case. If you are a sole practitioner you may wish to act as the alternate to your chosen continuity partner and vice versa.

Please note that it would not usually be practical to nominate a close relative (family, especially wife/husband or civil partner), as they could be emotionally and physically involved should you suffer severe injury, serious illness or indeed death.

The continuity agreement

Any arrangement for the continuity of practice between yourself and the alternate must be formally recorded in writing and should record matters such as:

• parties to the agreements
• period from, and to which, the agreement will operate (start date and expiry date)
• circumstances under which the agreement will be activated
• nature of the continuity support agreed
• extent of the parties' responsibility to the client and to each other
• method of which the client has been, or will be, informed of the nature and content of the agreement
• the client's right to decide whether or not the alternate is to act on his or her behalf.

It is of great importance that specific attention is paid to defining the roles and responsibilities of the alternate. Within these responsibilities there should be included the intentions of how you wish the practice to be managed in the event of your illness, incapacity or death.

To enable the alternate to complete their responsibilities, they must be given access to the names, addresses and the nature of work of all relevant clients. It should also be clear from the continuity agreement that the alternate does not have, and does not accept, any responsibility for the quality of your work prior to the agreement.

Notification of the continuity agreement

Once the continuity agreement has been signed, the practitioner should notify all interested parties. These interested parties (other than the person or firm with whom the agreement has been made) are:

• his or her dependants
• providers of other professional services to the practitioner (e.g. banks, solicitors, the professional indemnity insurance/general insurance providers) 
• the client(s) the agreement may concern. In particular, these clients must be advised of their right to choose whether or not the alternate is to act on their behalf in the event of the continuity arrangement becoming operational.

The continuity agreement example

A continuity agreement example is available to download and sets out some of the terms and conditions that you should consider. When creating and entering into a continuity agreement it is extremely important for both you and your prospective continuity partner to consider carefully the responsibilities and consequences that may occur. The aim of the continuity agreement example is to offer guidance to smaller practices only and is not suitable for multidisciplinary practices.

Continuity agreement (PDF 46KB)

For the information and guidance of Members in Practice, CIMA has devised illustrative forms for client engagement letters, continuity agreements, and the notification of complaints for internal action. Members should always take appropriate legal or other advice before using these as a basis for their own documents and should ensure that they are fully adapted to the particular circumstances. Where a Member uses these illustrative forms for any purpose, he or she acknowledges that CIMA accepts no responsibility or liability whatsoever in connection with any matter, dispute, or action arising out of such use or as a result of any consequential contractual relationship between Members in Practice and their clients