ICAS Regulation Board – meetings and notes

Published Note of the meeting of the ICAS Regulation Board on 10 February 2023

(Held at CA House, Haymarket Yards, Edinburgh with hybrid facilities)

Some matters have not been disclosed for reasons of confidentiality

Present: Dr Philip Rycroft (Chair), Liz Breckenridge, Shona Campbell CA (Convener, Insolvency Committee), Bernard Dunn CA, Nick Lander CA, Trisha McAuley, Colin McClatchie, Bruce Minto (Convener, Investigation Committee), Robert Mudge (Executive Director of Regulation)

In attendance: Charlotte Barbour (Director of Regulatory Authorisations), Lesley Byrne (Director of Regulatory Monitoring), Laura Spowart (Director of Investigations)

1. BACKGROUND

The Chair welcomed everyone to the Board’s first meeting of 2023, with a special welcome extended to Anna Ruszel, who was attending the meeting in her capacity as ICAS’ AML Manager.

Apologies were noted from Bruce Beveridge and Karen Scholes CA (Convener, Authorisation Committee). Mr Dunn was only able to attend for part of the meeting (via Teams).

There were no declarations of interest.

2. MINUTES OF THE PREVIOUS MEETING

The minutes of the meeting on 11 November 2022 were approved, subject to additions requested by two Board members.

3. REPORT FROM THE INTERIM EXECUTIVE DIRECTOR OF REGULATION

With the Board noting Mr Mudge’s report, the following items were highlighted:

Regulatory strategy

Following further feedback on the strategy document at the last meeting, the document had been revised and will be used by the Board and for internal purposes. A revised, public-facing version will be tabled for approval at the next meeting.

Oversight inspections

Two oversight visits, by the FRC and OPBAS, were conducted in November. While reports were still pending, Mr Mudge provided a verbal update on the preliminary feedback which had been given by each of the regulators. The reports will be shared with the Board once received, with the Board providing feedback on ICAS’ responses.

Insolvency regulation

The Board noted that discussions remain ongoing in respect of the Insolvency Service’s single regulator proposals.

FRC update

Mr Mudge provided a summary of recent meetings with the FRC, referring to the 2023/24 budget, and noting the latest developments in the transition to ARGA.

Review of legal services

Board members noted that the Scottish Government had published its latest paper on the future of the legal services framework in Scotland and thanked Mr Minto for providing a summary of the paper.

Exam cheating

Miss Spowart briefed the Board on articles published recently raising concerns over instances of cheating in accountancy firms, and confirmed that the Investigation Committee would be considering a paper in March which will review its approach in this area.

4. REGULATORY PLAN

The Board approved ICAS’ 2023 Regulatory Plan and agreed an approach for this to be reviewed over the course of its meetings this year.

5. REGULATORY UPDATES

The Board received reports from the three Directors in summary of the work of their respective teams, noting recent engagement with oversight regulators, and ongoing projects to improve various workstreams.

6. AML WORKPLAN

The Board reviewed an AML Workplan for 2023/24 which had recently been approved by the Authorisation Committee. It ties in with the obligations for supervisory bodies as set out in the OPBAS Sourcebook. It incorporates various areas for improvement which were discussed before and during OPBAS’ inspection visit.

The Board was content with the workplan, noting that it may need to be updated once OPBAS’ 2022 report has been received and considered.

7. CPD 2023

The Board agreed that a CPD sample would not be undertaken in 2023, with the time being used instead to review the sample process, to assess whether it is sufficiently effective as to justify the considerable time and resource involved.

A review will be undertaken later in the year, supported by the Authorisation Committee, and reported back to the Board.

8. CONVENER REPORTS

The Board noted the reports from the Conveners of the Investigation Committee, the Authorisation Committee, and the Insolvency Committee.

The Chair thanked the Committee Conveners for their comprehensive reports and asked that the committees and supporting staff be thanked for their work.

9. AOB

There being no further matters for discussion, the Chair drew the meeting to a close.

Published Note of the meeting of the ICAS Regulation Board on 11 November 2022

(Held at CA House, Haymarket Yards, Edinburgh with hybrid facilities)

Some matters have not been disclosed for reasons of confidentiality

Present:  Dr Philip Rycroft (Chair), Bruce Beveridge, Liz Breckenridge, Shona Campbell CA (Convener, Insolvency Committee), Bernard Dunn CA, Trisha McAuley, Colin McClatchie, Bruce Minto (Convener, Investigation Committee), Robert Mudge (Executive Director of Regulation), Karen Scholes CA (Convener, Authorisations Committee)

In attendance:  Charlotte Barbour (Director of Regulatory Authorisations), Lesley Byrne (Director of Regulatory Monitoring), Laura Spowart (Director of Investigations), Dawn Dickson (Director of Professional Oversight, FRC)

1. BACKGROUND

The Chair welcomed everyone to the meeting. Special welcomes were offered to Mr Lander, who was attending his first Regulation Board meeting, and to Mrs Byrne, who had started work as Director of Regulatory Monitoring at ICAS in October.

The Chair also introduced Mrs Dickson was observing the meeting on behalf of the FRC, as part of the ongoing oversight process. The Board noted that Mrs Dickson would give a presentation later in the meeting.

There were no apologies noted and no declarations of interest.

2. REPORT FROM THE INTERIM EXECUTIVE DIRECTOR OF REGULATION

The Board noted the report from Mr Mudge, with some key points discussed as follows:

• Staff update – the regulatory teams seemed to be in a much stronger position now, with recruitment almost completed.
• Oversight visits – both the FRC and OPBAS will be undertaking their annual inspection visits within two weeks of one another at the end of November. The outcomes of these visits will be discussed with the Board in due course.
• Meeting arrangements – the Board agreed that four meetings a year seems to be appropriate, with a balance of in-person and remote meetings.
• Firm engagement – the Board noted an update from Mr Mudge on some common challenges faced by firms, following a series of catch-up meetings.

3. GUEST SPEAKER – DAWN DICKSON

In her capacity as Director of Professional Oversight at the Financial Reporting Council (FRC), Mrs Dickson gave a presentation which updated the Board on various items, following which she answered some questions from Board members.

On behalf of the Board, the Chair thanked Mrs Dickson for her helpful update. The Board agreed that the public interest is best served by a good working relationship between ICAS and the FRC, which each committed to securing high standards across all audit work.

4. ICAS REGULATORY STRATEGY

The Board reviewed the Regulatory Strategy document, which had been drafted on the basis of its strategy session in June, and shared with the Board out of meeting in September. Some recommendations for amendments were provided, with Mr Mudge confirming that amended draft would be returned to the Board in February 2023.

It was agreed that a further paper would be brought to the Board in due course to review to analyse the statements made in the strategy document regarding self-regulation and to provide assurance in this regard.

5. FUTURE OF PRACTICE MONITORING

The Board agreed to support the Authorisation Committee’s recommendation that Practice Monitoring be re-introduced in 2023, delegating authority to the Committee to finalise the details of the programme with the ICAS Executive.

6. AMENDMENTS TO ICAS REGULATIONS

The Board agreed to propose to the ICAS Council in December amendments to the following ICAS Regulations:

• Audit Regulations
• AML Regulations
• ATOL Reporting Accountant Regulations
• Insolvency Regulations
• Public Practice Regulations

7. PIE AUDIT FEES

The Board agreed a recommendation for the calculation of the fees to be charged in 2023 for the ICAS-registered firms which undertake audits of Public Interest Entities (PIEs).

8. COMMITTEE APPOINTMENTS

The Board appointed two individuals to serve on the Authorisation Committee and one individual to serve on the Investigation Committee. Each appointment is for an initial term of three years.

9. CONVENER REPORTS

The Board noted the reports from the Conveners of the Investigation Committee, the Authorisation Committee, and the Insolvency Committee.

The Chair thanked the Committee Conveners for their comprehensive reports and asked that the committees and supporting staff be thanked for their work across 2022.

10. AOB

There being no further matters for discussion, the Chair drew the meeting to a close, taking the opportunity to thank the Board members and ICAS staff for all their contributions in 2022.

Published Note of the meeting of the ICAS Regulation Board on 17 June 2022

(Held at CA House, Haymarket Yards, Edinburgh with hybrid facilities)

Some matters have not been disclosed for reasons of confidentiality

Present:  Dr Philip Rycroft (Chair), Bruce Beveridge, Liz Breckenridge, Shona Campbell CA (Convener, Insolvency Committee), Colin McClatchie, Bruce Minto (Convener, Investigation Committee), Robert Mudge (Executive Director of Regulation), Karen Scholes CA (Convener Authorisations Committee; until 1pm)

In attendance:  Charlotte Barbour (Director of Regulatory Authorisations), Michael Lavender (Senior Regulatory Reviewer), Laura Spowart (Director of Investigations), Chris Benson (Regulatory Monitoring Reviewer; after 1 pm)

1. BACKGROUND

The Chair welcomed everyone, extending a special welcome to Bruce Beveridge, who had recently joined the Board following his appointment in April as a PIM on Council. The Chair also noted that Nick Lander CA – a former member of Council – had also been appointed to the Board, but was unable to attend the meeting due to a prior engagement.

The meeting would be held in two sessions. The morning session would be a dedicated discussion of ICAS’ strategy for regulation. The afternoon session would cover the Board’s normal business.

Apologies were noted from Trisha McAuley and Bernard Dunn. There were no declarations of interest intimated.

2. STRATEGY SESSION

The Board had a lengthy discussion on future regulatory strategy, structured around a PowerPoint presentation from Mr Mudge, with key topics as follows:

1. Trends, influences, and horizon-scanning.
2. The vision for ICAS regulation.
3. Operational priorities and projects.
4. Key policy positions.

Following extensive input from Board members on each topics, it was agreed that:

• A strategy document would be worked upon by the Executive, shared in draft with the Board out of meeting, and then presented for approval at the November meeting.
• A policy positions paper would be prepared by the Executive, shared with the Board out of meeting, and published on the ICAS website.

The Chair thanked everyone present for their contributions to the session, which was agreed as having been very helpful.

3. REPORT FROM THE INTERIM EXECUTIVE DIRECTOR OF REGULATION

Mr Mudge referred the Board to his report, speaking to a number of key developments, including:

• Audit reform, with the Government recently having published further proposals.
• A further update on various staffing matters in ICAS’ regulatory teams.
• A new guidance document to assist with the induction of Board members.

4. FEE AND LEVY PROPOSALS FOR 2022

On an annual basis, the Board is responsible for making recommendations to Council to consider in respect of the following:

• The fees charged by ICAS to Members and Firms in receipt of regulatory licences and authorisations.
• A disciplinary levy which may be imposed by ICAS on its Members and Firms.

The Board discussed and agreed the recommendations it would make to Council for consideration at its meeting in September. The ultimate decisions are taken by Council in all instances, with the Board’s role restricted to making recommendations.

5. PCRT AND STANDARDS IN THE TAX ADVICE MARKET

Mrs Barbour gave a brief update and overview of the work being conducted by HMRC in relation to ‘Raising Standards in the Tax Advice Market’. The paper was noted, with the lead on this continuing to be taken by the ICAS Tax Board. The (Regulation) Board asked that it be kept up to date with this.

6. CONVENER REPORTS

The Board noted the reports from the Conveners of the Investigation Committee and the Authorisation Committee. Given the lack of a recent meeting, there was no report from the Insolvency Committee.

7. AOB

With no other business raised, the meeting was closed.

Published Note of the meeting of the ICAS Regulation Board on 1 April 2022
(Held at CA House, Haymarket Yards, Edinburgh with hybrid facilities)

Some matters have not been disclosed for reasons of confidentiality

Present: Dr Philip Rycroft (Chair), Liz Breckenridge, Shona Campbell CA (Convener, Insolvency Committee), Bernard Dunn CA, Trisha McAuley, Colin McClatchie, Bruce Minto (Convener, Investigation Committee), Robert Mudge (Interim Executive Director of Regulation), Karen Scholes CA (Convener Authorisations Committee), Kevin Weston CA.

In attendance:  Charlotte Barbour (Secretary), Michael Lavender (Senior Monitoring Reviewer), Kenneth Oliver (Director of Regulatory Monitoring), Laura Spowart (Interim Director of Investigations)

1.BACKGROUND
The Chair welcomed everyone to the meeting, with a warm welcome offered to Ms McAuley, attending her first meeting as a Board member.

There were no apologies and no declarations of interest from Board members.

2.REPORT FROM THE INTERIM EXECUTIVE DIRECTOR OF REGULATION
Mr Mudge referred the Board to his report, speaking to a number of key developments, including:

• A further update on various staffing matters in ICAS’ regulatory teams.
• There has been significant activity in respect of the financial and trade sanctions which the UK Government had imposed on Russian and Belarusian government officials (and other named individuals and entities) following the invasion of Ukraine. The Board was updated on the support and supervisory work which ICAS is undertaking in relation to its members and firms.

3.FRC INSPECTION REPORT 2021
The Board reviewed and discussed the recently-received draft report of the FRC’s 2021 ICAS inspection visit, providing feedback to assist with ICAS’ responses, which will be sent to the FRC to allow the report to be finalised.

4.DEEP DIVE REPORTS  
The Board received and discussed reports setting out statistical information and trends in respect of its monitoring and investigation functions (with the monitoring reports covering AML, practice, and audit).

It was noted that AML monitoring is becoming a standalone process, to allow for greater focus on AML compliance in supervised firms. This is unlikely to require significant changes, as AML reviews constitute a large percentage of Practice Monitoring visits. Consideration will be given to how best to deal with the remaining issues from Practice Monitoring.

As ever, the Board retains a keen focus on the outcomes of monitoring visits, with a desire to see improves in gradings and findings. Various improvement strategies have been approved in this regard.

With regard to investigations, the number and nature of complaints remains fairly consistent, year-on-year, with the number of cases as a percentage of membership numbers being very low.

5.CHAIR’S ANNUAL REPORT TO COUNCIL
ICAS General Regulations require the Chair of the Board to report annually to Council. A draft report was considered and approved by the Board, with the expectation that this will be presented at Council’s meeting on 9/10 June 2022.

6.STRATEGY SESSION PLANNING
In June, the Board will hold a strategy session to discuss and provide direction in relation to ICAS’ regulatory policy for 2022 and beyond. The Board provided the Executive with feedback to assist with planning the session.

7.RISK REGISTER
The Board noted the items in the ICAS risk register which impact its interests. A separate register is being prepared setting out regulatory risks in more detail. This will be monitored by the Board going forward.

8.CONVENER REPORTS
The Board noted reports from the Conveners of the Insolvency Committee, the Authorisation Committee and the Investigation Committee.

There was a discussion regarding a potential appeal of a recent Discipline Tribunal decision.

9.AOB
The Board paid tribute to Mr Weston, who was attending his final meeting as a member of the Board.

The Board also recognised the contributions of Mr Oliver, who is leaving ICAS for a new role.

Published Note of the meeting of the ICAS Regulation Board on 4 February 2022
(held via video-conference)

Some matters have not been disclosed for reasons of confidentiality

Present: Dr Philip Rycroft (Chair), Liz Breckenridge, Shona Campbell CA (Convener, Insolvency Committee), Colin McClatchie (Public Interest Member), Bruce Minto (Convener, Investigation Committee), Robert Mudge (Interim Executive Director of Regulation), Michelle Mullen (Executive Director, Standards), Karen Scholes CA (Convener, Authorisations Committee), Kevin Weston CA.

In attendance:  Charlotte Barbour (Secretary), Bruce Cartwright (Chief Executive), Kenneth Oliver (Director of Regulatory Authorisation and Monitoring), Laura Spowart (Interim Director of Investigations).

1. BACKGROUND
   The Chair welcomed everyone to the Board’s first meeting of the year, which was held via Microsoft Teams. Special welcomes were offered to Mrs Breckenridge, attending her first meeting as a Board member, and also Mr Cartwright, ICAS’ Chief Executive.
   
   The Board also recognised that it was Miss Mullen’s final day as Executive Director of Standards at ICAS and thanked her for all her hard work over many years.
   
   An apology was noted from Bernard Dunn. There were no declarations of interest from Board members
2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS
   Mr Mudge referred the Board to his report, speaking to a number of key developments, including:
   
   - An update on various staffing and organisational changes in ICAS’ regulatory teams.
   - Recent developments with the FRC, including ongoing work on PIE audit registration and the Joint Audit Registration.
   - BEIS’ recently-issued consultation on the future of insolvency regulation in the UK.
   - Confirmation of ICAS’ re-recognition as a PAB and RAB in the Republic of Ireland.
3. SPOTLIGHT ON INSOLVENCY
   The first part of this item was a discussion of the BEIS consultation. The Board noted that ICAS is currently considering its response, with a ‘consultation group’ having been appointed to provide feedback (comprised of five individuals with insolvency experience). The final response will be shared with the Board after its submission on 24 March 2022.
   
   The second part was a presentation from Mr Oliver which covered outcomes from insolvency monitoring visits, with the Board supporting a series of initiatives which seek to raise insolvency quality over time.
4. CPD SAMPLE CRITERIA (2021)
   The Board received and approved proposals for the CPD sampling exercise to be undertaken over the course of the year.
5. REVIEW OF BOARD AND COMMITTEE FEEDBACK
   The Board reviewed the self-evaluation feedback recently provided by its members, as well as the members of the Regulatory Committees. It was pleased to note that the vast majority of responses were positive, with some individuals providing helpful suggestions and feedback.
6. OPBAS UPDATE
   The Board received an update on the work which ICAS is taking in response to the findings of OPBAS’ 2021 inspection visit. It was pleased to note that good progress is being made and that recent engagement with OPBAS has been positive.
   
   The Board approved changes to ICAS’ AML Regulatory Actions Guidance document and agreed that these should be presented to the Authorisation Committee.
7. BOARD WORKPLAN FOR 2022
   The Board considered and approved a draft workplan for 2022, noting that flexibility will be required to deal with the changing regulatory landscape. The meeting in June will focus on ICAS’ future regulatory strategy.
8. CONVENER REPORTS
   The Board noted reports from the Conveners of the Insolvency Committee, the Authorisation Committee and the Investigation Committee.
9. AOB
   There was no other business raised.

Published Note of the meeting of the ICAS Regulation Board on 19 November 2021

(held at 10:00 via video-conference)

Some matters have not been disclosed for reasons of confidentiality

Present:Dr Philip Rycroft (Chair), Shona Campbell CA, Bernard Dunn CA, Colin McClatchie (Public Interest Member), Michelle Mullen (Executive Director of Standards), Karen Scholes CA, Kevin Weston CA.

In attendance:Bruce Cartwright CA (Chief Executive), Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

This was the Board’s final meeting of the year. With access to CA House still restricted due to the Covid-19 pandemic, the meeting was held remotely via Microsoft Teams. Mr Cartwright observed the meeting in his capacity as ICAS Chief Executive.

Apologies for the meeting were noted from Bruce Minto (Lay Member). There were no declarations of interest.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS

Miss Mullen referred the Board to her report, speaking to a number of key developments, including:

An update on the proposals for audit reform which are currently being considered by BEIS.

ICAS’ recent response to the FRC’s consultation on the Audit Firm Governance Code.

The outcome of a recent IPO hearing involving one of ICAS’ registered trademarks.

Mr Oliver answered questions from Board members in relation to the monitoring KPIs and statistics included in the report.

3. CA COMPENSATION SCHEME

Miss Mullen briefed the Board on proposals to change the regulations of the CA Compensation Scheme, as recommended by the board of the Scheme. The Board requested further information in respect of the proposals, with a decision on whether to support them to be taken out of meeting.

4. OPBAS

Miss Mullen and Mr Mudge provided an update on recent engagement with OPBAS following receipt of a letter in September confirming the outcomes of their 2021 inspection visit. They confirmed that matters have been discussed directly with OPBAS employees.

The Board reviewed and approved ICAS’ proposed response to the letter, subject to some additional amendments to be made out of meeting.

5. REGULATORY PLAN 2022

The Board reviewed and approved the draft plan, which provides an overview of ICAS’ 2022 priorities, as well as confirming the core activities (i.e. business as usual). The plan will be shared with ICAS’ oversight regulators and monitored by the Board over the course of 2022.

In addition to planning for the year ahead, the Board agreed that it should have a dedicated meeting in 2022 to discuss ICAS’ wider strategic vision for regulation in the longer-term.

6. REVIEW OF EVALUATION PROCESS

Mr Mudge presented a report in review of the new evaluation process which has been trialled in 2021 for members of the Board and the Regulatory Committees.

With the feedback provided on the new process being overwhelmingly positive, the Board agreed that it should be retained on a permanent basis for its members, as well as the members of the Regulatory Committees.

The process will be discussed further elsewhere to see if it should be implemented for other bodies in ICAS’ governance framework.

7. COMMITTEE APPOINTMENTS

The Board agreed to appoint two new members to the Investigation Committee for an initial term of three years, commencing on 1 January 2022.

8. REGULATORY RISK REGISTER

Miss Mullen explained that, based on previous feedback from the Board, the regulatory risks have been extracted from ICAS’ overall Risk Register, to allow for clearer review by the Board.

With the Board noting the information, Miss Mullen confirmed that she recently presented a regulatory risk ‘deep dive’ to the Audit and Risk Committee, which is properly sighted on all the risks discussed by the Board, and comforted that these are a key focus of the Board.

9. CONVENER REPORTS

The Board noted reports from the Conveners of the Authorisation Committee and the Investigation Committee.

10. AOB

It was agreed on a preliminary basis that the meeting on 4 February 2022 will be held in-person in CA House.

With the possibility that this will be Miss Mullen’s last meeting, the Board recorded its wish to have an opportunity in the future to formally thank her for her service.

Noting that this is last meeting of the year, the Chair took the opportunity to record the Board’s thanks to the ICAS staff for their hard work and assistance across 2021.

Published Note of the meeting of the ICAS Regulation Board on 6 August 2021

(held at 10:00 via video-conference)

Some matters have not been disclosed for reasons of confidentiality

Present:Dr Philip Rycroft (Chair), Shona Campbell CA, Colin McClatchie (Public Interest Member), Michelle Mullen (Executive Director of Standards), Karen Scholes CA, Kevin Weston CA.

In attendance:Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

With CA House remaining closed due to the Covid-19 pandemic, the meeting was held remotely via Microsoft Teams.

Apologies for the meeting were noted from Bernard Dunn CA and Bruce Minto (Lay Member).

No declarations of interest were noted.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS

The Board noted the report from Miss Mullen, discussing a number of key developments, including:

• An update on a new platform for hosting the Joint Audit Register.
• A delay in feedback from the OPBAS inspection visit in April 2021.
• Progress in addressing ICAS’ regulatory status in the Republic of Ireland.
• The impact of remote working on monitoring visit timescales.

3. REGULATORY LANDSCAPE

Miss Mullen provided a short PowerPoint presentation in overview of the current regulatory landscape, focusing on four key areas: (i) audit and ARGA oversight, (ii) AML, (iii) insolvency, and (iv) tax agent regulation.

The Board discussed ICAS’ response to BEIS’ recent consultation on the future of audit, noting further workstreams in this area.

4. FEE AND LEVY PROPOSALS FOR 2022

On an annual basis, the Board is responsible for making recommendations to Council to consider in respect of the following:

• The fees charged by ICAS to Members and Firms in receipt of regulatory licences and authorisations.
• A disciplinary levy which may be imposed by ICAS on its Members and Firms.

The Board discussed and agreed the recommendations it would make to Council for consideration at its meeting in September. The ultimate decisions are taken by Council in all instances, with the Board’s role restricted to making recommendations.

5. NON-MEMBER RIs

The Board agreed that all non-member RIs who are authorised by ICAS should require to become ICAS Affiliates, with the process to be concluded within the next three months.

6. COMMITTEE APPOINTMENTS

The Board appointed a new person as a Lay Member on the Investigation Committee, for an initial term of three years, starting on 9 September 2011.

7. AML STRATEGY RISK ASSESSMENT

Mr Oliver presented to the Board in respect of a new methodology with ICAS will use to assess the risk profile of firms in relation to AML. The aim is to make the assessment process more objective and consistent, as well as more efficient.

8. PUBLIC REPORTS

The Board noted and approved three regulatory reports which will shortly be published on the ICAS website.

9. RISK REGISTER

The Board was presented with ICAS’ updated Risk Register, focusing on the items affecting its interests.

10. CONVENER REPORTS

The Board noted the reports from the Conveners of the regulatory committees.

11. AOB

The Board agreed to schedule an additional meeting in September, to be attended by the FRC and focusing on FRC-related issues. A final date for the meeting will be confirmed shortly.

Published Note of the meeting of the ICAS Regulation Board on 5 February 2021

(held at 10:00 via video conference)

Some matters have not been disclosed for reasons of confidentiality

Present:Lord Wallace of Tankerness QC (Chair), Brian Davidson CA, Bernard Dunn CA, Colin McClatchie (Public Interest Member), Bruce Minto (Lay Member), Michelle Mullen (Executive Director of Standards), Matt Smith (Lay Member), Kevin Weston CA.

In attendance:Dame Elish Angiolini (Chair of the Discipline Board), Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

This was the Board’s first meeting of 2021. With CA House remaining closed due to the Covid-19 pandemic, the meeting was held remotely via Microsoft Teams.

The Board welcomed Mr Minto, who was attending his first Board meeting having recently been appointed as Convener of the Investigation Committee. It also welcomed Dame Elish Angiolini, who was attending the meeting as a guest of the Board, in her capacity as Chair of the Discipline Board.

An apology for the meeting was noted from Karen Scholes CA.

No declarations of interest were noted either before or during the meeting.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS/REGULATORY LANDSCAPE

The Board received two updates from Miss Mullen on key matters affecting its interests, including:

• An update on the expected publication timescales for two Government consultations on regulatory matters.
• An ICAS paper on the recalibration of the corporate eco-system, which is pending publication.
• An update on HMRC’s proposals for the future regulation of tax advisors.
• The impending appointment of a new Chair of the Board.

The Board noted updated regulatory statistics, e.g. in relation to monitoring visits and complaint numbers.

3. DISCIPLINE BOARD UPDATE

Referring to the Discipline Board’s recent report to Council, Dame Elish provided the Board with a summary of the key items on the Discipline Board’s workplan in 2020. She then answered questions on a variety of subjects, including the recent move towards remote tribunal hearings.

The Board thanked Dame Elish for her input, noting the importance of the two boards having a good understanding of each other’s business, while maintaining the necessary level of independence.

4. CPD SAMPLE (2020)

The Board received and approved proposals for the CPD sampling exercise to be undertaken over the course of the year.

5. DEEP DIVES: AUDIT MONITORING / PRACTICE MONITORING & AML

The Board received and discussed reports setting out statistical information and trends in respect of ICAS’ audit and practice monitoring functions (with the later incorporating AML).

With regard to audit monitoring, and the summary of visit gradings, the Board noted its desire for ICAS to consider what steps might be taken to raise audit quality. It was agreed that an appropriate strategy paper will be tabled for discussion at the Board’s meeting in April.

A dedicated AML strategy paper will also be presented at that meeting.

6. INVESTIGATION REGULATIONS

The Board agreed to recommend changes to Investigation Regulations to the Constitutional Panel.

7. REGULATORY PLAN FOR 2021

Subject to minor amendments, the Board approved its Regulatory Plan for the coming year, setting out an overview of ICAS’ 2021 priorities in regulations, aligned with ‘business as usual’ activities.

8. COMMITTEE APPOINTMENTS

The Committee appointed new members to the Authorisation and Investigation Committees, and also appointed a new Vice-Convener to the Investigation Committee.

9. CONVENER REPORTS

The Board noted reports from the Conveners of the Authorisation Committee and the Investigation Committee.

10. AOB

Miss Mullen confirmed that she expects that the FRC’s draft report of its 2020 inspection visit will be received in time for it to be tabled for consideration at the Board’s meeting in April.

Published Note of the meeting of the ICAS Regulation Board on 6 November 2020

(held at 10:00 via video conference)

Some matters have not been disclosed for reasons of confidentiality

Present: Lord Wallace of Tankerness QC (Chair), Brian Davidson CA, Colin McClatchie (Public Interest Member), Michelle Mullen (Executive Director of Standards), Karen Scholes CA, Matt Smith (Lay Member), Kevin Weston CA.

In attendance: ICAS President Catherine Burnet CA, ICAS Deputy President Bruce Pritchard CA, Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

The ICAS President and Deputy President attended the meeting as observers (with the President joining for the first hour of the meeting only).

With CA House remaining closed due to the Covid-19 pandemic, the meeting was held remotely via Microsoft Teams.

Apologies for the meeting were noted from Bernard Dunn CA and Bruce Minto (Lay Member). The Board noted that Mr Minto had recently been appointed as the new Convener of the Investigation Committee.

No declarations of interest were noted either before or during the meeting.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS/REGULATORY LANDSCAPE

The Board considered these two reports from Miss Mullen simultaneously, discussing the key developments, including:

• An update on a case recently determined by a Discipline Tribunal, and affirmed by an Appeal Tribunal.
• Ongoing inspection visits by ICAS’ oversight regulators, with further visits expected in 2021.
• Proposals for administrative changes to the UK’s Joint Audit Register.
• Updates on the expected publication timescales for Government consultations on regulatory matters.

3. MEMORANDUMS OF UNDERSTANDING

The Board confirmed its approval of the following:

(i) An updated Memorandum of Understanding for the operation of the Insolvency Service’s complaints gateway

(ii) A new Memorandum of Understanding setting out the information-sharing processes for the RSB/RABs to follow in discharging their statutory audit functions.

4. INVESTIGATION REGULATIONS

The Board agreed to propose revised Investigations Regulations to the Constitutional Panel to consider at its meeting later in November. The amendments concern a new ‘Joint Application Process’ for Members (etc) who accept a finding by the Investigation Committee of a liability to disciplinary action, but do not accept the order which has been offered.

5. CPD SAMPLE

The Board received an update on the progress of the annual CPD sample, with additional information on the areas where Members have focused their CPD activities.

6. AUDIT FEE PROPOSALS FOR 2021

Having considered additional information, the Board determined that the fee scales it recommended to Council, and which were approved by Council in September, remain appropriate.

7. EVALUATION OF REGULATORY COMMITTEE MEMBERS

The Board approved a new process for the evaluation of members of the Board, the Authorisation Committee, and the Investigation Committee, to be rolled out in 2021.

8. USE OF THE DESCRIPTION CHARTERED ACCOUNTANTS

The Board agreed to propose revised Public Practice Regulations to the Constitutional Panel to consider at its meeting later in November. The amendments propose that, for firms using the description ‘Chartered Accountants’, principals who are not Chartered Accountants should require to be ICAS Affiliates.

9. IMPACT OF COVID-19 ON REGULATORY ACTIVITIES

Mr Oliver presented a report, with the Board pleased to note how ICAS has responded to Covid-19, with all regulatory targets expected to be met. The Board wished to record its thanks for the hard work of the Regulatory Monitoring Team.

10. CONVENER REPORTS

The Board noted reports from the Conveners of the Authorisation Committee and the Investigation Committee.

11. AOB

Miss Mullen confirmed that she would shortly be issuing invitations for the Board’s meetings in 2021. It is expected that meetings will continue to be held remotely, at least in the near future.

Published Note of the meeting of the ICAS Regulation Board on 7 August 2020

(held at 10:00 via video-conference)

Some matters have not been disclosed for reasons of confidentiality

Present: Lord Wallace of Tankerness QC (Chair), Brian Davidson CA, Bernard Dunn CA, Colin McClatchie (Lay Member), Michelle Mullen (Executive Director of Standards), Ian Robertson CA, Karen Scholes CA, Matt Smith (Lay Member), Kevin Weston CA.

In attendance: Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

With CA House remaining closed due to the Covid-19 pandemic, the meeting was held remotely via Microsoft Teams.

There were no apologies for the meeting, and no declarations of interest were noted.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS/REGULATORY LANDSCAPE

The Board considered these reports from Miss Mullen together, discussing a number of key developments, including:

An update on the expected forthcoming government consultation on audit reform.

ICAS’ draft response to HMRC’s consultation in respect of the regulation of tax agents.

The latest outcomes from ICAS’ annual CPD sample.

3. FEE AND LEVY PROPOSALS FOR 2021

On an annual basis, the Board is responsible for making recommendations to Council to consider in respect of the following:

The fees charged by ICAS to Members and Firms in receipt of regulatory licences and authorisations.

A disciplinary levy which may be imposed by ICAS on its Members and Firms.

The Board discussed and agreed the recommendations it would make to Council for consideration at its meeting in September. The ultimate decisions are taken by Council in all instances, with the Board’s role restricted to making recommendations.

4. BOARD COMPOSITION AND SKILLS MATRIX

The Board agreed to three recommendations in respect of its composition and skills matrix, with ICAS’ Nominations Committee to be encouraged to have regard to the need to improve the diversity of the Board, with reference to gender, ethnicity, age, disability and other factors.

5. ANNUAL REPORT TO COUNCIL

The Board noted the proposed content for its annual report to Council, with Miss Mullen requesting that any comments be submitted to her within the next two weeks.

6. RISK REGISTER

The Board was presented with ICAS’ updated Risk Register, focusing on the items affecting its interests.

7. AOB

Miss Mullen confirmed that ICAS’ working arrangements are continuing successfully during the Covid pandemic.

The Chair highlighted that this was Mr Robertson’s last Board meeting, in advance of him stepping down as Convener of the Investigation Committee in October. The Board recorded its thanks for his contributions to both the Board and the Investigation Committee, over a sustained period of time.

Published Note of the meeting of the ICAS Regulation Board on 10 July 2020

(held at 10:00 via video-conference)

Some matters have not been disclosed for reasons of confidentiality

Present: Lord Wallace of Tankerness QC (Chair), Brian Davidson CA, Bernard Dunn CA, Colin McClatchie (Lay Member), Michelle Mullen (Executive Director of Standards), Ian Robertson CA, Karen Scholes CA, Matt Smith (Lay Member).

In attendance: Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

With remote meetings being limited to two hours, the Board decided to hold this additional meeting between its scheduled meetings in May and August, to ensure that sufficient time is available to discuss items of importance.

There were apologies noted from Kevin Weston CA. No declarations of interest were noted.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS

The Board received a report from Miss Mullen providing information on a number of matters affecting the Board’s interests, including:

• An update on ICAS’ response to the Covid-19 pandemic, with the Board pleased to note the success of a recent series of webinars, and also that full-year targets for regulatory monitoring visits are expected to be met.
• An update on cases being investigated by the Financial Reporting Council (FRC) involving ICAS Members or Firms.
• The Board received an update on two regulatory processes.

3. REGULATORY LANDSCAPE

Miss Mullen provided a verbal update on developments in the regulatory landscape since the Board’s meeting in May, with a focus on possible timescale for future consultations.

4. INSOLVENCY SERVICE VISIT REPORT

The Board consider a draft report prepared by the Insolvency Service setting out the findings of its 2020 review of ICAS’ functions as a Recognised Professional Body (‘RPB’) for insolvency in the UK.

5. ETHICS CPD

James Barbour, ICAS’ Director of Technical Policy, provided the Board with an update on proposals to introduce a mandatory ethics element to the CPD requirements for Members.

6. FEE PROPOSALS FOR 2021

The Board noted that its meeting in August will focus on regulatory fee proposals for 2021, and agreed that this should include a discussion of the basis upon which fees are charged to ICAS-registered firms undertaking audits of public interest entity clients.

7. ANNUAL REPORT TO COUNCIL

The Board agreed that its annual report to Council in September should include a short video with regulatory highlights, statistics, and comments from Board members.

8. CONVENER REPORTS

The Board noted reports from the Conveners of the Authorisation Committee and the Investigation Committee.

Published Note of the meeting of the ICAS Regulation Board on 15 May 2020
(held at 10:00 via video-conference)

Some matters have not been disclosed for reasons of confidentiality

Present:Lord Wallace of Tankerness QC (Chair), Brian Davidson CA, Bernard Dunn CA, Michelle Mullen (Executive Director of Standards), Ian Robertson CA, Matt Smith (Lay Member), Kevin Weston CA.

In attendance:Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1.BACKGROUND
This was the Regulation Board’s second meeting of 2020. With CA House being closed due to the ongoing Covid-19 pandemic, the meeting was held remotely via Microsoft Teams. All Board members were able to contribute to the meeting in the usual way.

Mr Dunn was attending his first meeting following his recent appointment to the Board as a CA Member.  There were apologies noted from Colin McClatchie and Karen Scholes. No declarations of interest were noted.

2.REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS
The Board received a report from Miss Mullen updating on a number of key matters affecting the Board’s interests, including:

• Information on ICAS’ response to the Covid-19 pandemic, with the Board pleased to note that ICAS’s regulatory functions were being discharged with minimal disruption.
• An update on the 2020 budget of the Financial Reporting Council (FRC).
• An update on the activities of the Regulatory Committees (including KPIs).

3.FRC REPORT
The Board reviewed the final report of the FRC’s 2019 ICAS monitoring visit, with two representatives of the FRC joining the meeting for this item only. The Board noted the report’s recommendations, and the steps that ICAS will be taking in response.

The purpose of the FRC’s monitoring process is to assess ICAS’ compliance with the requirements of the Delegation Agreement (in respect of statutory audit).

4.REGULATORY LANDSCAPE
The Board considered a paper providing an update on the regulatory landscape as at May 2020, with information provided under four headings (audit, insolvency, AML and others).

5.REGULATORY PLAN FOR 2020
The Board approved a minor addition to the version of ICAS’ Regulatory Plan for 2020 which had been previously been approved at its meeting on 28 February 2020.

6.CPD SAMPLE CRITERIA
The Board reviewed and approved the criteria which will be applied to the delayed sampling exercise which ICAS will shortly undertake in respect of its Members’ CPD records for 2019.

7.PROFESSIONAL CONDUCT IN RELATION TO TAXATION
The Board received a presentation from Charlotte Barbour, ICAS’ Director of Taxation, in respect of the call for evidence recently published by the Government in relation to raising standards in the tax advice market. Mrs Barbour confirmed that the Board would have an opportunity to review ICAS’ response in advance of the closing date of 28 August 2020.

8.BOARD EVALUATION ACTION PLAN
The Board reviewed an action plan for the six points which had been identified through its 2019 self-evaluation survey.

9.RISK REGISTER
The Board reviewed and discussed the up-to-date version of ICAS’ Risk Register, noting that comments could be submitted separately by email.

10.CONVENER REPORTS
The Board noted reports from the Conveners of the Authorisation Committee and the Investigation Committee.

Published Note of the meeting of the ICAS Regulation Board on 28 February 2020

(held at 10:00 at CA House, Edinburgh)

Some matters have not been disclosed for reasons of confidentiality

Present: Lord Wallace of Tankerness QC (Chair), Brian Davidson CA, Colin McClatchie (Public Interest Member), Michelle Mullen (Executive Director of Standards), Ian Robertson CA, Karen Scholes CA, Matt Smith (Lay Member).

In attendance: Robert Mudge (Director of Investigations), Kenneth Oliver (Director of Regulatory Monitoring).

1. BACKGROUND

This was the Regulation Board’s first meeting of 2020. It was attended in part by a representative of the Financial Reporting Council (FRC) as part of ICAS’ annual monitoring process.

An apology was noted from Kevin Weston CA. No declarations of interest were noted.

2. REPORT FROM THE EXECUTIVE DIRECTOR OF STANDARDS

The Board received a report from Miss Mullen updating on a number of key matters affecting the Board’s interests, including:

• Confirmation of Mrs Scholes’ appointment as Convener of ICAS’ Authorisation Committee.
• An update on recent discussions with the FRC regarding ICAS’ governance arrangements.
• An update on changes to several of ICAS’ Regulations.
• An update on the activities of the Regulatory Committees (including KPIs).

3. REGULATORY PLAN FOR 2020

The Board approved ICAS’ Regulatory Plan for 2020, which had been updated following recent comments received from Board members. The plan will now be shared with ICAS’ oversight regulators.

4. PROFESSIONAL INDEMNITY INSURANCE REGULATIONS

Having been updated on a number of proposed changes, the Board agreed to propose amended Public Indemnity Insurance Regulations to ICAS’ Constitutional Panel and Council, with an anticipated implementation date of 29 March 2020.

5. AUDIT REGISTRATION IN THE REPUBLIC OF IRELAND

In November 2019, the Board agreed that ICAS firms would be required to opt-in to be registered to undertake audit work in the Republic of Ireland from 1 January 2020 onwards. The Board received an update on the number of firms which had submitted applications, and discussed implementation steps.

6. DEEP DIVE REPORTS FOR REGULATORY FUNCTIONS

The Board received and discussed reports setting out statistical information and trends in respect of ICAS’ audit monitoring and complaints functions. With regard to audit monitoring, there was particular focus on visit gradings, follow-up action, and what ICAS might be able to do to improve audit quality.

7. BOARD EVALUATION FOR 2019

Noting the feedback recently provided by its members, the Board identified actions points, and agreed how these would be monitored over the course of the coming year.

8. RISK REGISTER

The Board reviewed and discussed ICAS’ Risk Register, focusing on the items relating to its remit.

9. CONVENER REPORTS

The Board noted reports from the Conveners of the Authorisation Committee and the Investigation Committee.