HM Treasury has published its response to the consultation on the reform of anti-money laundering (AML) supervision regime, confirming its intent to create a Single Professional Services Supervisor (SPSS). This will transfer the AML supervisory responsibility from the professional body supervisors and HMRC to the Financial Conduct Authority (FCA) for Accountancy Service Providers, Legal Service Providers, and Trust and Company Service Providers.

The decision marks a significant change in the regulatory landscape, affecting all accountancy service providers.

ACCA has expressed its disappointment and surprise at the decision, particularly given the risks identified of the SPSS model and the consultation responses, where the majority supported an enhanced OPBAS+ model that would have allowed professional bodies to continue using their unique expertise in providing AML supervision. The move to FCA oversight will most certainly introduce additional regulatory burdens and costs for members, especially when comparing ACCA’s current AML fees compared to those charged by HMRC – the current non-professional body supervisor for Accountancy Service Providers.

In response, ACCA intends to engage directly with ministers and HM Treasury to propose alternative approaches aimed at improving the effectiveness of the AML supervisory regime without imposing unnecessary costs or burdens on the sector. The priority remains ensuring that supervision continues to be practical, proportionate, and aligned with the realities of the accountancy sector.

Implementation of this policy decision will take time, as it requires primary legislation to pass through Parliament. No formal timescales have been announced. Until the legislative framework is in place and further details are provided, ACCA will continue to provide effective supervision to its regulated firms, ensuring continuity and support for members in meeting their AML obligations.

Do comment on your immediate reaction to this announcement on our LinkedIn post as it will help with any further engagement with the government on the way forward.