Firms who fight and win tribunal cases are set to be denied their costs, under plans announced today.

Firms will have to now prove that the Accountancy And Actuarial Discipline Board has committed 'misfeasance' to get their costs.

The move sets up an almost insurmountable barrier, and is likely to infuriate those who are accused by the AADB, but who are found to be innocent. It marks a return to the system used by the Joint Disciplinary Scheme, where successful defendants could not get their costs back.

The AADB had to pay £1m in costs to PricewaterhouseCoopers and others when its Mayflower case failed. The costs bill caused consternation within the FRC, which had not budgeted for any costs claim.

'Misfeasance' constitutes an offence greater than simply negligence or the AADB simply finding its charges do not stick, but requires costs claimants to prove there has been some deliberate and dishonest use of office.

The Board has also proposed the formation of a Decisions Disciplinary Committee, which will also be subject to the rules regarding circumstances of 'misfeasance'.

Further Reading:

Read the FRC's release