Chartered Institute of Public Finance and Accountancy

 

Frequently Asked Questions

If I am a member of the Practice Assurance Scheme, why do I need to hold Professional Indemnity Insurance?

Members of the Practice Assurance Scheme are self employed individuals who provide accountancy services to third parties. This means that they are providing services to organisations that are not their employers.

In recognition of this, Members in Practice should review their practice operations and risk assess what level of Professional Indemnity Insurance they should hold.

Holding a PII policy protects a member’s business against compensation sought by a client if the member was found to have been negligent when providing services to a client.

CIPFA recommends rather requires a minimum level of cover in recognition that individual members should review their individual practice operations.

The Professional Indemnity Insurance Regulations and Guidance provides further information.

I work for a National Audit Agency. Some of my colleagues require a practising certificate so will I need to apply for one?

CPFA's who work for the National Audit Agencies are not required to hold Practising Certificates at this stage. Application of the scheme to these members is still under consideration.

Will Practice Assurance be applied to all Self Employed members? All of my work is in training and lecturing so do I need a Practising Certificate?

Members providing exclusively academic training on a self employed basis are not required to hold a certificate.

As part of my role as the S151 officer in my local authority, I also hold the honorary position of treasurer at another organisation. Can I fulfil this appointment without holding a practising certificate?

If you hold this appointment because you are the S151 officer, in effect by custom and practice, then a Practising Certificate is not required. However this arrangement should be documented between the two organisations - this could be via an engagement letter clearly setting out the arrangement or minuted in a meeting of the two organisations.

I am employed in one of the major firms, which is subject to the ICAEW Practice Assurance regime. Will I need to hold a practising certificate?

No a Practising Certificate would not be required because you are employed by the firm.