ACCA calls for stronger measures to protect clients’ cash held by solicitors

Leading global accountancy body ACCA supports the solicitors' regulatory body's crackdown on solicitors holding client money.

Responding to a consultation from the Solicitors Regulation Authority (SRA), ACCA says it supports the SRA's proposal to reintroduce the requirement for all accountant's reports - qualified and unqualified - to be submitted to the SRA. ACCA also re-iterated its support for the introduction of a mandatory annual declaration from firms.

However, the accountancy body does not agree with the idea of making the reporting accountant responsible for submitting the accountant's report to the SRA. Glenn Collins, Head of Technical and Strategic Engagement, ACCA UK, said: 'The requirement to submit must rest with the client money-holding firm. This however would not preclude the client money-holding firm from retaining an accountant to submit the report, on their behalf, on an agency basis.'

Collins added that ACCA would welcome the idea of dual notifications as this mirrors other reporting regimes where reporting accountants are required to submit qualified reports to the regulator.

ACCA also pointed to practical obstacles for accountants in this work. Joe Fitzsimons, ACCA Regional Lead Policy and Insights - EEMA & UK said: 'Our members continue to highlight that obtaining bank confirmations, particularly for these types of accounts, is increasingly difficult. Alternative approaches the reporting accountant may take should also be included in the SRA guidance.

'Should the SRA wish to engage with banking regulators to highlight the importance of receipt of timely bank confirmations for these types of accounts, ACCA would be more than happy to assist.'

The ACCA submission is here.

The SRA consultation is here.