New obligations will apply from April 2016
ACCA and the Civil Aviation Authority (CAA) have signed a memorandum of understanding that sets out obligations on ACCA members, ACCA and the CAA that will apply from April 2016.
Members wishing to undertake CAA and ATOL reporting work are required to register with, and have a licence issued by, ACCA.
ACCA has decided that this licence will not require an additional fee for members. Non-members will be required to pay a fee when registering.
In addition, members must register and complete the training required by CAA/ATOL prior to the granting of the licence.
To undertake these, members should register with the CAA.
The following information will be required from each accountant by CAA:
Professional accountancy body
Member registration number
Registration with and licensing by ACCA is free of charge to ACCA members and is open to members who:
The agreement between ACCA and CAA states that ‘ACCA will designate and regulate ARA firms and ARAs in accordance with the provisions within the ACCA Rulebook and in full compliance with the requirements of the CAA’s ARA Scheme Key Components document and which forms part of this agreement’.
Some of the basic requirements of the Key Components document are that:
The firm must demonstrate that:
The reporting accountant is also expected to demonstrate competence and must:
The individual designated ATOL Reporting Accountant must be independent of the ATOL holder.
Other requirements include:
A firm must make arrangements so that all members, principals and employees performing ATOL-related work are, and continue to be, competent to carry out ATOL reporting for which they are responsible or employed.
The individual must also meet the continuing professional development guidelines of its professional body for the purposes of ATOL reporting.
A firm must maintain an appropriate level of competence in the conduct of ATOL work and this is best achieved through the use of relevant and bespoke manuals, programmes, checklists and procedures so that the firm has a body of knowledge. Such documentation must be kept up to date if the firm is to retain its competence.
The professional body will determine whether a firm/designated ATOL reporting accountant is liable to disciplinary action under the professional body’s disciplinary arrangements if:
A firm must appoint a contact principal who will supply the professional body with information as required and provide an annual declaration to the professional body of the individual designated ATOL reporting accountant compliance with its responsibilities under the registration arrangement rules.
The professional body will use the information and annual declaration in their assessment of the continuing designation of the accountant as an ATOL reporting accountant.
Conduct of licensed work
A designated ATOL reporting accountant must:
A designated ATOL reporting accountant should follow Guidance Note 10 when performing ATOL returns/reporting work.
Under the ARA scheme, the firm should take responsibility for firm-wide elements including:
The individual designated ATOL reporting accountant will sign off ATOL reports.
The updated Guidance Note 10 has now been issued by CAA.
The forms are currently being produced and will be available from ACCA.