Conduct Committees
When the IFA receives a complaint, the case may be put before an independent Conduct Committee who will determine the members liability to disciplinary action. The decisions of the Conduct Committees and Fixed Penalties are publicised.
Rest on File
If, at any time, the case manager determines that there may be a case to answer, but it is not in the public interest to refer the matter to the relevant Conduct Committee, the matter may rest on the members file for a period of five years.
A complainant cannot appeal against a decision to rest their complaint on file.
If the Institute receives a subsequent complaint in respect of a member, any matter still resting on the respondent’s file shall be considered by the case manager in the first instance. If appropriate the matter will then be considered by the Conduct Committee in addition to the subsequent complaint and so be the subject of disciplinary action.
Rest on files are not publicised.
Fixed Penalties
A “Fixed Penalty” means a financial sanction imposed on a Member, Member firm or Contracted firm by a Case Manager without undergoing a Conduct Committee process.
Examples of cases that might be dealt with by way of a fixed penalty include, but are not limited to; CPD failures, failure to submit an annual member/firm return, failure to appoint an alternate and failure to have adequate PII.
Fixed penalties are not designed to be an alternative to compliance but to incentivise swift and professional resolution of breaches of the IFAs Bye-laws and Regulations. To facilitate this, fixed penalties are conditional on the resolution of the breach, the terms of which will be set out in the fixed penalty notice. Failure to evidence the rectification of the breach as set out in these terms will result in an immediate referral to the appropriate conduct committee.
If the member, member firm or contracted firm accepts the fixed penalty, in writing, within 15 working days of receiving the proposed fixed penalty, the Institute shall administer the collection of any financial penalty and/or costs and the appropriate publicity arrangements. If the Fixed Penalty is rejected or ignored, the matter is referred to the appropriate Conduct Committee.
Investigations Committee
The purpose of the Investigations Committee is to investigate alleged liability of the member, student, affiliate or member firm or contracted firm to disciplinary action. The committee has the power to order unlimited fine and or costs. In addition, the committee may make a regulatory order that a monitoring (onsite) review of a firm be conducted by the Institute and may order that the review be undertaken at the firm’s expense.
The Investigations Committee consists of a lay person chair, an additional lay person and a member of the Institute or another professional accountant.
Members are not permitted to attend the Investigations Committee meetings as the matters are considered on the papers alone.
Regulatory Committee
The IFA has established a separate conduct committee to consider regulatory breaches which do not involve a third party such as a client, employer or regulatory authority. Example of regulatory breaches that are considered by this Committee include failure to submit annual membership, affiliate or firm returns, failure to hold a current IFA practising certificate and Money Laundering Regulations breaches. The Regulatory Committee has the same powers as the Investigations Committee and can order a monitoring review, unlimited costs and or fines.
The Regulatory Committee consists of a lay person chair, an additional lay person and a member of the Institute or another professional accountant.
Members are not permitted to attend the Regulatory Committee meetings as the matters are considered on the papers alone.
Disciplinary Committee
The Disciplinary Committee considers those matters referred to it by the Investigations or Regulatory Committee. A Case Manager may also refer a case directly to the Disciplinary Committee if it is in the public interest to do so.
Disciplinary Committee hearings are open to the public.although the committee, once convened, may decide to hold all or part of the hearing in private. Any member of the public wishing to attend the hearing should contact complaint@ifa.org.uk at least two working days before the hearing. Members of the press or public who attend a hearing are entitled to hear what is said but they are not entitled to see written material provided to the Committee.
As a complainant, you will be invited to attend the hearing if your complaint is referred to the IFA’s Disciplinary Committee or you may be required to attend as a witness.
Members requested to attend an IFA disciplinary committee hearing are encouraged to attend the hearing and be familiar with the IFA's disciplinary regulations.
The Disciplinary Committee consists of a lay person chair, an additional lay person and a member of the Institute or another professional accountant. In addition, a legal assessor will be present.
The Disciplinary Committee can impose sanctions such as reprimand or severe reprimand; it can impose conditions on remaining in membership; it can expel members and it can impose unlimited fines and costs.
Appeal Committee
The Appeal Committee hears appeals against the decisions of the Disciplinary Committee.
The Appeal Committee consists of a lay person chair, an additional lay person and a member of the Institute or another professional accountant. In addition, a legal assessor will be present.
The Appeal Committee can uphold, vary or rescind the Disciplinary Committee’s decision, it can also award costs.
Additional resources
